- One of the first AIFM-regulated direct alternative investment funds in Europe
- It will cover a broader range of asset classes, including commodities and foreign exchange
- The fund has a volatility target of 20%
Seven Capital Management has obtained the approval of the CSSF (Luxembourg financial regulator) to launch its BlackSnake fund, an AIFM-regulated alternative investment fund (AIF). Using the same investment strategy as the Seven Absolute Return fund managed according to the Commodity Trading Advisors (CTA) strategy, the new BlackSnake fund will cover a broader range of asset classes, including commodities and foreign exchange. Its CTA Global Trend Following strategy will invest in fixed income, equity, forex and commodity futures markets, with a volatility target of 20%.
“We’re stripping back to the bare-bones of who we are”, said Johann Schwimann, CEO of Seven Capital Management. “By launching the BlackSnake alternative investment fund, Seven Capital is returning to the select club of high yield CTA managers.”
“Furthermore, the new AIFM regulations enable us to manage a Luxembourg fund from Paris and to apply our investment process to it”, added Johann Nouveau, CIO and Partner of Seven Capital. “It is the first European cross-border passport between France and Luxembourg for direct alternative investment and it represents a real breakthrough for French fund managers in a highly competitive international environment.”
The AIFM regulations are currently the highest level of regulation in Europe. Seven Capital Management, which obtained this approval in August 2013, worked closely with the firm Reinhold & Partners to set up and create the specialised investment fund (SIF) in Luxembourg.
“Seven Capital Management was the first French management company to submit its European AIFM application. That enabled us to collaborate effectively with the supervisory authorities in France and Luxembourg and to secure the necessary approval to launch the SICAV”, stated Bertrand Gibeau, a partner at Reinhold & Partners. Seven Capital Management also chose to team up with Caceis for custodian and valuation services because of its in-depth knowledge of the French and Luxembourg markets as well as issues related to the AIFMD.