Following strong fund inflows, Assenagon Alpha Volatility limits unit issuance to protect existing investors
In recent months, fund inflows to Assenagon Alpha Volatility have risen dramatically as changing correlation patterns on the capital markets increasingly attract investors to alternative asset classes with asymmetric risk/return profiles. The fund, which uses volatility as an investment class, has seen its NAV rise from EUR 130 million at the end of 2015 to around EUR 600 million. Assenagon has therefore decided to temporarily restrict the issue of new share certificates for Assenagon Alpha Volatility in order to safeguard existing investors' interests.
From 9 June 2016 until further notice, the total volume of new investments is to be limited to EUR 250,000 per week (although this figure may change in the event of variations in exchange rates). The total amount will be allocated pro-rata to orders received as of the cut-off on the last business day of the week, with shares to be allocated rounded down to whole units. The only investment date will be the first business day of the respective following week and only existing shareholders may subscribe. Assenagon reserves the right to approve exceptions. Shares may still be returned on any valuation date.
"With a NAV of approximately EUR 600 million, we believe we are well positioned to continue the optimal exploitation of opportunities presented by volatility on behalf of our investors", explained Assenagon's Managing Director Vassilios Pappas. "By restricting the issue of share certificates we are ensuring that we can fully meet our existing investors' expectations at all times."
Assenagon Alpha Volatility's portfolio managers trade volatility pairs in accordance with certain recurring behaviour patterns on the volatility markets. They buy selected single-stock implied volatility while simultaneously selling index volatility. This strategy offers a systematic source of income and a particularly attractive yield potential in periods of heightened volatility.
Munich, 8 June 2016
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