Key Takeaways
- • iM Global Partner launched the iMGP DBi Managed Futures UCITS fund following European regulatory approval in late November, with €60 million in seed capital from European investors seeking diversification from equity markets.
- • The fund replicates the performance of leading managed futures hedge funds within a UCITS wrapper, offering European institutional investors and wealth managers access to a strategy previously available only in US-domiciled ETF format.
- • Managed futures demonstrated strong 2022 performance with negative correlation of -0.02 to global equities (MSCI World Index) over the past five years, positioning the asset class as a meaningful diversifier relative to traditional stocks and bonds.
- • iM Global Partner's US-listed managed futures ETF (DBMF), launched three years prior, has become the industry's largest managed futures ETF by assets under management, validating demand for the strategy ahead of the European expansion.
- • The fund employs a dynamically adjusted portfolio of liquid futures contracts to match core factor exposures of target hedge funds while delivering UCITS liquidity and cost efficiency advantages over traditional hedge fund structures.
Summary
iM Global Partner and Dynamic Beta investments (DBi) have successfully launched the iMGP DBi Managed Futures UCITS fund in Luxembourg, marking the availability of a managed futures strategy to European institutional investors in a regulated fund wrapper. The launch followed Commission de Surveillance du Secteur Financier (CSSF) approval in late November 2022, with initial seed commitments of €60 million from European-based investors, according to the official announcement on February 16, 2023.
The fund addresses documented demand from European wealth managers and institutional investors for exposure to managed futures strategies. Jamie Hammond, Deputy CEO and Head of International Distribution at iM Global Partner, noted that the US-domiciled DBMF ETF strategy received substantial investor interest in 2022 as market participants sought diversification away from equities. Managed futures, as measured by the SG CTA Index, demonstrated a negative correlation of -0.02 with global stocks (MSCI World Index) over the five-year period, supporting the case for the asset class as a portfolio diversifier distinct from traditional equity-bond relationships.
The iMGP DBi Managed Futures fund operates as a sub-fund within the iMGP Luxembourg domiciled UCITS SICAV structure, with DBi serving as sub-manager. The fund seeks to replicate the pre-fee performance of a representative basket of leading managed futures hedge funds by maintaining a dynamically adjusted portfolio of liquid futures contracts that mirror core factor exposures of target hedge funds. This approach combines hedge fund-style active management with the liquidity and cost efficiency inherent to UCITS fund structures.
The European launch builds on the proven track record of iM Global Partner's US strategy. The firm launched its managed futures ETF strategy in the United States three years prior, and as of January 30, 2023, it had become the largest managed futures ETF in the industry by assets under management. Andrew Beer, co-founder of Dynamic Beta investments, emphasized the strategic opportunity, noting that managed futures offer greater diversification benefits relative to stocks and bonds than many alternative asset classes yet remain underallocated within European wealth management and institutional portfolios. The UCITS structure removes regulatory and operational barriers to adoption among European institutional investors.
The fund addresses documented demand from European wealth managers and institutional investors for exposure to managed futures strategies. Jamie Hammond, Deputy CEO and Head of International Distribution at iM Global Partner, noted that the US-domiciled DBMF ETF strategy received substantial investor interest in 2022 as market participants sought diversification away from equities. Managed futures, as measured by the SG CTA Index, demonstrated a negative correlation of -0.02 with global stocks (MSCI World Index) over the five-year period, supporting the case for the asset class as a portfolio diversifier distinct from traditional equity-bond relationships.
The iMGP DBi Managed Futures fund operates as a sub-fund within the iMGP Luxembourg domiciled UCITS SICAV structure, with DBi serving as sub-manager. The fund seeks to replicate the pre-fee performance of a representative basket of leading managed futures hedge funds by maintaining a dynamically adjusted portfolio of liquid futures contracts that mirror core factor exposures of target hedge funds. This approach combines hedge fund-style active management with the liquidity and cost efficiency inherent to UCITS fund structures.
The European launch builds on the proven track record of iM Global Partner's US strategy. The firm launched its managed futures ETF strategy in the United States three years prior, and as of January 30, 2023, it had become the largest managed futures ETF in the industry by assets under management. Andrew Beer, co-founder of Dynamic Beta investments, emphasized the strategic opportunity, noting that managed futures offer greater diversification benefits relative to stocks and bonds than many alternative asset classes yet remain underallocated within European wealth management and institutional portfolios. The UCITS structure removes regulatory and operational barriers to adoption among European institutional investors.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.