THE first fund of absolute return fund to be launched anywhere in the world is to be managed from Guernsey.
With a target return objective of consistent absolute returns of approximately 6-10% a year, the Collins Stewart Alternative Strategies Fund has daily dealing with no lock-up periods or redemption penalties.
It will be managed by the same team in Guernsey who currently run the company’s existing fund of hedge funds product.
Mike Brown (pictured), head of sales at Collins Stewart Fund Management, said the firm was excited to be the first to launch a fund of this kind.
‘We expect the prospect of being able to access funds with hedge fund-like objectives in a regulated fund with daily dealing as being hugely attractive to intermediaries and their clients.
‘Our flagship fund of hedge funds is one of the most successful on the market, its success driven by our long-term experience in alternative investments.
‘Undoubtedly there will be huge demand from investors for absolute return strategies and we believe that, thanks to the complexity of the sector, they will require the knowledge and specialisation of a fund of hedge fund manager to help navigate around the pitfalls that could exist.’
The fund is a UCITS compliant fund of UCITS III funds, which will be Dublin-domiciled from within the existing fund platform.
Richard Hodgetts, manager of the Collins Stewart Alternative Strategies Fund, added: ‘Dozens of hedge funds are launching replica funds to conform with UCITS III regulation and this is making it increasingly difficult for investors and their advisers to choose the most suitable funds.
‘Understanding the sophisticated tool kit used by these replica hedge funds is of paramount importance to successful fund selection.’
nÊUCITS stands for Undertakings for Collective Investment in Transferable Securities – unit or investment trusts permitted to operate throughout the EU on the basis of their admission by the domestic regulator in one member state.
Article posted on 29th October, 2009 - 2.29pm
2 Article Comments
I wonder what the combined management fees of the fund of fund manager and the underlying managers will be on this product? Fancy having at least 5% of your money each year going to keep these guys in yachts and fast cars?
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An Absolute Return Fund of Funds for Hedge Fund? Unique? I don’t think so – isn’t this what GAM does so excellently already?
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