Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Schroders unites with John Paulson for fund launch

Schroders unites with John Paulson for fund launch

Schroders has revealed plans to develop a merger arbitrage fund with renowned hedge fund manager John Paulson for its Ucits-compliant GAIA platform.

The fund, which is still in the development stage, is scheduled to be launched at the end of May.

The Schroder GAIA platform is designed to offer investors access to alternative investment strategies within a Ucits-compliant framework.

Speaking in a web conference, a spokesperson for Schroders said the group intends to add two new funds to this platform over the next couple of months, the first of which will be a merger and arbitrage-focused fund developed with New York-based Paulson (pictured).

The Schroders spokesperson said the end of May is the current working launch date and further details would be made available regarding style and process closer when it's official launch date is confirmed.

Paulson has already launched an Alternative Ucits version of one his hedge funds, his flagship Advantage product, which was made available to European investors through a similar platform run by Deutsche Bank in 2010.

The second fund, which is also in the development process, will focus on liquid distressed investment opportunities in equity and bonds, with a working launch date of June.

Paulson partnership

The merger arbitrage fund, which is still subject to regulatory approval, will be called the Schroder GAIA Paulson Merger Arbitrage.

It will be based on the Paulson International Limited fund, which launched in 1996 and controls $1.7 billion and has produced an annualised return of 12% since its inception.  

It will invest mainly in US, Western European and Canadian large cap public equities currently or potentially involved in mergers and other corporate events, including but not limited to exchange offers, bankruptcy reorganisations or liquidations.

The fund is benchmark unconstrained and will target an annualised return of 8-10% net of fees, with expected volatility of 6-8%. It can invest globally in equity, equity related and debt securities of companies and the strategy focuses on high quality, larger spread deals

Commenting on the arrangement, John Paulson, president of Paulson & Co, said: ‘We are very pleased to be partnering with Schroders and look forward to being able to offer our merger arbitrage capabilities to a wider audience via the strength of the Schroder GAIA distribution network.’

The Schroder GAIA platform is home to a number of large funds run in conjunction with third party managers, among them is John Brennan’s $2.7 billion Schroder GAIA Sirios US Equity fund, which Citywire Global revealed is set to hard close at the end of June.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter