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Private banking

Alternative funds

Alternative management can be an efficient tool to diversify your wealth. Relatively unconnected to traditional equity and bond markets, it is a way to help protect your capital when markets are in decline and to capture a significant part of performance when markets rise. Our centre of expertise selects the best alternative funds with the highest standards in terms of risk control, transparency and liquidity.

Alternative management is a very efficient wealth diversification tool thanks to its absolute performance target and to its low correlation to traditional markets.

What is alternative management?

Alternative management uses innovative management techniques and a wide range of financial instruments. These management techniques offer a weak correlation to equity and bond markets, with the objective of:

  • conserving capital in declining markets,
  • capturing significant upside performance in rising markets.

Investing in alternative funds in a secure environment

A selective access: Fund Solutions analysts select the most renowned alternative funds through an extremely rigorous due diligence process.

A secure access: the fund and fund manager selection must meet the demanding criteria of Fund Solutions’ team in terms of risk control, transparency and monitoring of asset liquidity.

A privileged access: beyond selecting funds, Fund Solutions experts offer detailed and continuous information about the whole offering.

What is the investment universe?

The alternative investment universe is composed of a number of investment strategies which can be broken down as follows:

Long/Short Equity

Improving performance

  • Taking advantage of an equity portfolio including both buying (long) and selling (short) positions
  • Manager’s objective: benefiting from most of the increase in equity markets while limiting downside risk
  • Correlation to equity markets: strong
  • Relative Value

    Strong risk aversion

  • Taking advantage of market inefficiencies by benefiting from valuation discrepancies between asset classes…
  • ….while offering a neutral market exposure
  • Correlation to financial markets: low
  • Directional Trading

    Diversifying a global portfolio

  • Taking advantage of macro economic changes by investing in all types of markets and financial instruments (equity, bonds, currencies, commodities)
  • 2 main approaches: Global Macro (discretionary or systematic) or CTA (systematic trading models)
  • Correlation to financial markets: low
  • Event Driven

    Improving performance

  • Taking advantage of major events in the life of a company: mergers, acquisitions, restructurings, share buy backs, disposal of assets…
  • Manager’s goal: in case of a takeover the manager tries to take advantage of the price discrepancy between the buyer’s price and the market price.
  • Correlation to equity markets: strong
  • Societe Generale Private Banking’s alternative funds offering

    Investing in manageds accounts :

    Managed accounts enable investors to access renowned hedge funds through a secure vehicle (segregated assets, transparency, continuous risk control, weekly liquidity, low minimum investment amount)

    Altenative Funds - UCITS III :

    The UCITS III regulation makes it possible to access the alternative management universe in a liquid and transparent format that is regulated by European law.

    Funds of Hedge Funds :

    Such funds offer a dynamic allocation between several strategies and several hedge fund managers.