Chris, we look forward to welcoming you to our upcoming International Fund Management 2017 Summit, where you will be presenting. Please give us a brief overview of your experience and your role at Schroder GAIA.
I am a Product Manager on the Schroder GAIA range. GAIA is Schroders’ dedicated liquid alternative range. I am responsible for promoting our externally managed strategies with our sales teams and clients. Essentially my team acts as the interface between the external hedge fund managers and the rest of Schroders. Prior to my current role I spent almost 8 years in Product Development, at both Schroders and Henderson. I started my career in investment operations at Skandia Life, before moving across to the newly created asset management business. I then spent 4 years at Bank of New York in a client service and business development role.
You will be joining us for day two of the Summit to present on the importance of liquid alternatives in a portfolio context. Why do you believe this is an important talking point?
We live in a global economy and correlations between different asset classes are increasing. Liquid alternative strategies can give investors that element of diversification required to lower the overall correlation of their portfolios.
How would you define liquid alternatives?
Liquid alternative strategies are typically benchmark unconstrained; they have the ability to take long and short positions, which reduces directional market risk and may offer protection in down markets. Also they offer enhanced liquidity terms and transparency to traditional offshore hedge funds.
What common misconceptions are made with liquid alternatives?
The main misconceptions about liquid alternative strategies are that they are inferior products to offshore hedge funds and that they don’t offer value for money to traditional long only investors. Part of the work we do is to address investors’ concerns by dispelling these myths and to educate investors about the benefits of liquid alternatives as part of a well diversified portfolio.
What are the benefits of liquid alternatives?
Providing you select the right funds, adding liquid alternatives to your portfolio has proven to increase your return potential and reduce risk over the long term. Most liquid alternative funds are regulated which provides greater comfort, liquidity and transparency to investors.
