Deutsche Bank and Paulson launch UCITS fund
Deutsche Bank and Paulson & Co Inc ("Paulson") are pleased to announce the launch of a UCITS compliant version of Paulson’s flagship Advantage fund.
The UCITS fund, called the DB Platinum IV Paulson Global Fund (‘The Fund’), has been launched on Deutsche Bank’s Platinum platform. The Fund is linked to the performance of a Synthetic Managed Basket (the "Basket"), the components of which are selected by Paulson in accordance with an adapted version of their established Advantage strategy, modified to comply with UCITS regulations. The Basket follows the core strategy of Event Arbitrage including event situations such as mergers, distressed and special situations on the long and/or short sides and through both debt and equity and aims to deliver returns that are uncorrelated to broad financial markets.
Paulson is a global investment manager with over $30bn in AUM and a 16 year track record. The Paulson Advantage Fund* has an annualized return of 22%** since inception and ranked top performing fund in the world in 2008 and number 7 in 2009***.
Investors in the UCITS 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 in respect of the GBP share class.
Commenting on the new fund, Stephane Farouze, Deutsche Bank’s Global Head of Fund Derivatives, said: “There is very significant investor demand for hedge fund UCITS evidenced by the net new flows into this segment which are up 70%**** this year. We are delighted to collaborate with Paulson on their entry into UCITS and to add them to our platform, which provides investors access to some of world's leading hedge fund managers in UCITS. Paulson’s expertise and long standing success will make this particular product attractive to investors.”
John Paulson, founder of Paulson & Co Inc., said: “Implementing our existing event arbitrage strategy via a UCITS vehicle allows us to provide a liquid, regulated, onshore European fund that helps to further diversify our investor base. We have chosen to work with Deutsche Bank because of its extensive operational and risk management experience as well as the broad distribution network the bank provides for its platform.”
Paulson’s decision to support this UCITS product reflects a growing demand among investors for new ways to invest in hedge funds, including regulated and liquid UCITS funds and managed accounts. Deutsche Bank’s Platinum platform has EUR 12.7 bn assets under management. The bank’s managed account platform, the X-markets hedge fund platform, has grown strongly with more than $5bn under management.
For further information, please call:
Deutsche Bank AG
Name: Stacey Coglan
Phone: +44 (0) 207 545 8226
Paulson & Co Inc
Name: Armel Leslie
About Deutsche Bank
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 80,000 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 for demanding clients creating exceptional value for its shareholders and people.
About Paulson & Co Inc
Paulson & Co. Inc. (‘PCI’) is an SEC registered investment adviser specializing in global merger, event arbitrage and credit strategies. The firm was founded by John Paulson in 1994 and is headquartered in New York with offices in London and Hong Kong. PCI’s investment team is led by Mr. Paulson, and is comprised of legal and financial experts in merger arbitrage, event arbitrage, and distressed investing. The team’s disciplined, risk-controlled approach strives to maximize returns on a risk-adjusted basis with low volatility and low correlation with the broad markets. PCI’s investment performance does not require any particular set of market conditions or economic environment to succeed. As of December 1, 2010, PCI manages approximately $33.6 billion for institutional and high net-worth investors.
Key Risks Disclosure
The Fund is a non-principal protected investment. Investments in the Fund can result in losses, up to and including a total loss of the amount initially invested. The Fund is intended for financially sophisticated investors who, based on their own investment expertise or that of their financial advisor, understand its strategy, characteristics and risks. The Fund follows a complex hedge fund strategy that may use derivatives to take long or short positions on various markets. The use of derivatives involves a high level of risk as derivatives can be highly leveraged, highly volatile and may magnify losses. The Fund bears counterparty risk from swap transactions, limited to a maximum of 10% of The Fund NAV according to UCITS III rules. The Fund’s swap counterparty is Deutsche Bank AG.
This press release has been prepared solely for information purposes and does not constitute an offer or a recommendation to enter into any transaction. Investments in funds involve numerous risks including, among others, general market risks, credit risks, foreign exchange risks, interest rate risks and liquidity risks. The value of an investment in a Deutsche Bank fund may go down as well as up and investors may not get back their original investment. Please refer to the relevant fund’s full prospectus and any relevant simplified prospectus for more information on Deutsche Bank funds. These documents are available free of charge from Deutsche Bank, London Branch. Deutsche Bank AG is authorised under German Banking Law (competent authority: BaFin – Federal Financial Supervising Authority) and is regulated by the Financial Services Authority for the conduct of investment business in the United Kingdom. The registered address of Deutsche Bank AG, London Branch, is Winchester House, 1 Great Winchester Street, London EC2N 2DB. Any direct or indirect distribution of this document into the United States, Canada or Japan, or to U.S. persons or U.S. residents, is prohibited. © 2010 Deutsche Bank AG
* The Fund does not provide exposure to Paulson's Advantage Fund. Paulson's Advantage Fund track record is being shown here to illustrate Paulson's long term track record and skills in managing investment strategies. There will be significant differences between the Paulson Advantage Fund and The Fund. The information relating to Paulson's Advantage Fund 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 Paulson’s track record shown above. Past performance is not a reliable indicator of future results.
** The above returns are shown 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.
*** Source: Barron's Top 100 Hedge Funds, May 24, 2010
**** Source: The Hedge Fund Journal, Nov 25 2010