Sanlam Investments has launched a US Absolute Return fund, which will target positive returns over the medium-to-longer term in all market conditions.
The new fund is an extension of Sanlam's long-only value product, the Sanlam US Dividend fund, and will be managed by Adour Sarkissian, along with assistant fund manager Conor Walsh.
The Dublin-domiciled UCITS fund will adopt a long/short approach to take advantage of both overvalued and undervalued areas of the North American equity market, according to Sanlam.
Previously, Sanlam told Investment Week that the strategy, which has been tested on a paper-based portfolio, will be market neutral, with a targeted 0.05% correlation to equities.
Tom Carroll, head of asset management at Sanlam Investments, said: "It remains a hugely challenging environment for investors seeking positive returns amid volatility.
"Our US Absolute Return fund will aim to deliver significant alpha generation using fundamental research to identify long and short opportunities. Underpinned by a truly disciplined and systematic process, the fund will seek to deliver positive returns regardless of market conditions and provide competitive absolute returns through a long/short portfolio with limited market exposure."
The standard AMC on the fund is 0.75%, with a performance fee of 20% over the benchmark, the Secured Overnight Financing Rate. There is also a founder share class at a fee of 0.50%.