Deutsche Bank and leading U.S.-based CTA manager Millburn launch UCITS III fund
Deutsche Bank and Millburn Ridgefield Corporation (“Millburn”) are pleased to announce the launch of a UCITS III compliant version of Millburn’s Multi-Markets trading program. The UCITS fund, called the DB Platinum IV dbX Millburn Multi-Markets Index Fund (“the fund”), will offer weekly liquidity and be available in multiple share classes.
Millburn* is a leading global investment manager with more than $2.3bn in AUM** and four decades of experience in the development of systematic, quantitative investment strategies to trade on liquid global commodities, futures and foreign exchange markets. Millburn’s Multi-Markets trading program, upon which the UCITS fund’s strategy is based, trades a diversified set of more than 120 markets and utilises strategies with holding periods ranging from short-term (intra-day) to long term (several weeks or months). The Multi-Markets trading program has a track record of more than six years, has experienced an average compound annual net return of +12.4% and has demonstrated low correlation to stock, bond and hedge fund indices.***
Deutsche Bank’s European Head of Fund Derivatives, Tarun Nagpal, said: “There continues to be a strong shift in investor sentiment in Europe towards alternative UCITS and we are delighted to be at the forefront of the market by bringing leading hedge fund managers onto our platform. Millburn’s expertise and long-standing success will make this product attractive to investors wanting to access the returns of a leading managed futures fund in a UCITS III format.”
Executive Vice President of Millburn, Barry A. Goodman, commented: “We believe that our track record, which is one of the longest in the industry, combined with our demonstrated ability to innovate and evolve, can give our investors an edge and position our funds to take advantage of market dislocations across a wide range of time-frames. As one of the first major U.S.-based CTA managers to launch a UCITS product, we’re excited at the opportunity to give a new segment of investors a strong complement or alternative to their existing portfolio holdings.”
Millburn’s choice of Deutsche Bank as a partner reflects a continuation of a long and successful working relationship between the two organisations. The fund will be linked to the performance of the dbX Millburn Multi-Markets Index, whose components are selected by Millburn on the basis of a rule-based systematic strategy. This index reflects exposure to exchange-traded futures, forwards and/or swap and options contracts on a diverse range of more than 120 global markets (including energies, base and precious metals, crops, stock indices, bonds, interest rates and currencies). Investors in the fund will benefit from the provision of weekly liquidity with fund NAVs published on Reuters, Bloomberg and online. The fund will be available in EUR, GBP, USD and JPY and intends to apply for reporting fund status with respect to the GBP share class.
Millburn’s decision to support this UCITS III product reflects a continuing demand among investors for new ways to invest in hedge fund strategies, including through regulated and liquid UCITS III funds and managed accounts. Deutsche Bank’s Platinum platform has EUR 12.26bn under management and the bank’s managed account platforms, the X-markets hedge fund platform and dbSelect, have grown strongly.
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About Deutsche Bank
Deutsche Bank is a leading global investment bank with a substantial private clients franchise. Its businesses are mutually reinforcing. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With more than 100,000 employees in 73 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions, creating lasting value for its clients, shareholders, people and the communities in which it operates.
Millburn has a legacy of leadership and innovation in commodities, futures and foreign exchange markets that dates back to 1971. As of June 1, 2011, Millburn Ridgefield Corporation managed approximately $2.3bn* using alternative strategies with an emphasis on disciplined, systematic approaches and rigorous risk management. The Millburn Corporation and Millburn International, affiliates of Millburn Ridgefield Corporation, provide significant research, trading and support services to Millburn Ridgefield Corporation. Collectively, Millburn and its affiliated entities have approximately 70 employees located in offices in Connecticut, New York, Illinois and Japan.
*The description of the activities of Millburn include activities conducted by Millburn’s predecessor firm (which became known as Millburn) prior to Millburn’s legal formation in 1982.
**AUM is approximate as of June 1, 2011
*** From its inception in October 2004 to end April 2011. The above program return is net of management fee, performance fee and other fees and costs that are different from the fees and costs associated with the fund. Past performance is not a reliable indicator of future results. The fund does not provide exposure to the Millburn Multi-Markets trading program. The Millburn Multi-Markets trading program’s track record is being mentioned here to illustrate Millburn’s long-term track record and skill in managing investment strategies. There may be significant differences between the Millburn Multi-Markets trading program and the fund. The information relating to the Millburn Multi-Markets trading program’s track record should not be used as a direct comparison to the fund. Please note that no representation is being made that the fund is likely to achieve returns in the future similar to the Millburn’s Multi-Markets trading program track record referenced above. Correlations to stocks, bonds and hedge funds were measured utilizing the S&P500 Index, the MSCI World Index and the Citi World Government Bond Index, respectively. Correlations to hedge funds were measured utilizing the HFRI Fund Weighted Composite Index.
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