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.’