Launch of Amati Systematic Trend Fund
Amati Global Investors today announces the launch of its new managed futures fund, the Amati Systematic Trend Fund ("The Fund"), which is a SICAV fund administered and regulated in Malta (non-UCITS).
The Fund was established by two former traders from BP's International Trading Division, Chris Allen and Gordon Izatt, along with Eurex options trader Jason Rolf. Chris Allen and Gordon Izatt set up a systematic trading business at BP in 1998, based on a computer trading model that invested in futures in a wide range of markets using a trend following system. This proved extremely successful and the pair went on to manage a substantial trading book using this model for BP from 1998 to 2009.
The Amati Systematic Trend Fund was seeded in June 2011 allowing time to test fully the new systems and the fund administration processes. The Fund invests solely in exchange traded futures covering oil, gas, stock indices, currencies, bonds, interest rates, metals and soft commodities, using the Kyte Group as clearing broker.
Trends are analysed over five different time frames for each of the futures contracts, and the position adopted by the model is an aggregate of these. This is then subjected to both volatility adjusting, where position sizes are varied to keep the risks in line with current market conditions, and also to seasonality factors, which take account of any underlying seasonal bias in each market.
The target return for the Fund is 15% a year (at current interest rates), which reflects analysis of the fund team's performance over 12 years in their previous incarnation.
Commenting on the target returns for the Fund, Chris Allen stated: "Whilst the returns for this strategy have been consistently good over the long haul there are still many months when patience is required. In these periods the model is seeking to align itself by analysing the price movements of large liquid markets, and is able to respond rapidly to significant changes. Although the Fund is not suitable for a short-term investment, it has great potential for investors in the longer term as it is uncorrelated to returns from stock markets, and is therefore an important addition to many portfolios as an alternative investment."
Paul Jourdan, CEO of Amati, said: "I had watched the development of Gordon's trading model at BP over many years and had always thought that this could form the basis of a highly desirable fund, which would be a great asset to any fund management business. Gradually it became clear that, if we were patient, we could put together one of the most experienced and best quality teams capable of establishing an institutional grade systematic trend fund.
"Gordon has written a completely new software platform for Amati since then, incorporating new, proprietary, genetic algorithms and fuzzy logic functionality. We call the software ARIA to reflect the initials of Amati, Rolf, Izatt and Allen; the team has exceptional experience with regard to risk management and ensuring that the complex processes and trades are executed smoothly. At the same time we set up the new fund structure in Malta, whilst we can also offer a managed account service where appropriate for larger investors."
In addition, Amati today announces the appointment of Phil Jefferson's company JConsult (Europe) Ltd to introduce the Fund to investors across Europe. Phil Jefferson has led fund marketing teams at Fidelity, JP Morgan Fleming, First State Investments, and brings a wealth of experience to this role. Recent market events have again brought focus on the alternative investments sector which has a history of delivering returns uncorrelated to those seen in stock markets.