The United States has long been home to trend-following CTA ETFs, offering investors quick, liquid exposure to one of the most effective diversifiers in risk-off environments. In contrast, Europe has been without CTA ETFs in UCITS format – until now. The world’s largest trend-following ETF, the iMGP DBi Managed Futures Strategy ETF, now has a UCITS-format sibling listed on the Euronext exchange in Paris, soon to be available on the London Stock Exchange as well.
Andrew Beer and his team at Dynamic Beta Investments (DBi), part of the iM Global Partner asset management network, have officially launched Europe’s only Managed Futures UCITS ETF. Beer believes that the trend-following managed futures strategy is the most effective diversifier for a portfolio of stocks and bonds. Now, their replication strategy – previously available through both a U.S.-listed ETF and a Europe-domiciled UCITS fund – can be accessed by all types of investors in the UCITS ETF wrapper.
“We’re not in the business of launching different strategies like throwing spaghetti at the wall to see what sticks,” Andrew Beer tells HedgeNordic. “We have a proven strategy that replicates trend-following approaches. Our goal is simply to deliver it in a different format, making it accessible to all investors.” The iMGP DBi Managed Futures Strategy aims to replicate the pre-fee performance of the world’s leading trend-following managers in a more cost-efficient and accessible manner, while also addressing the issue of single-manager risk.
“We have a proven strategy that replicates trend-following approaches. Our goal is simply to deliver it in a different format, making it accessible to all investors.”
Andrew Beer, Founder and Managing Member of DBi.
The UCITS ETF broadens the available wrapper options for this managed futures strategy, offering investors the flexibility to access the managed futures space through their preferred investment format. In addition to some European investors being unable to directly purchase U.S.-listed ETFs for various reasons, Beer also points out that investors tend to stick with the structures they are familiar with. “If an investor looks at their portfolio and sees ETF, ETF, ETF, they’re unlikely to suddenly invest in a fund or another type of investment product,” he explains. “That’s why it’s important to offer this strategy in different formats, making it accessible to all investors.”
“By offering our international clients for the first time the exact same strategy in both a UCITS fund and ETF wrapper, we are aiming for more accessible, cost-efficient, and transparent ways to access the diversification benefits of managed futures,” says Julien Froger, Managing Director, Head of Europe, iMGP. “After several years of offering actively managed ETFs in the USA, we are delighted to bring this offering to European investors. Our ability to respond to market opportunities demonstrates our commitment to providing innovative, cutting-edge products for all our clients, wherever they are based,” adds Philippe Couvrecelle, Founder and CEO of iMGP.
“By offering our international clients for the first time the exact same strategy in both a UCITS fund and ETF wrapper, we are aiming for more accessible, cost-efficient, and transparent ways to access the diversification benefits of managed futures.”
Julien Froger, Managing Director, Head of Europe, iMGP.
The UCITS ETF, officially named the iMGP DBi Managed Futures Fund R USD ETF, replicates the same managed futures strategy as its U.S.-listed counterpart, the iMGP DBi Managed Futures Strategy ETF, which is the world’s largest alternative ETF with $1.26 billion in assets under management. The U.S.-listed ETF trades under the Bloomberg ticker DBMF:US, while the European UCITS ETF share class is listed under DBMF:FP.
