F&C Asset Management is planning the launch of a fund of hedge fund investment trust targeting unconventional strategies.
The closed-ended vehicle is expected to have an offshore domicile with a London listing. The fund is likely to be similar to the group’s current portfolios, which are Bermuda domiciled, including F&C Balanced Alpha Fund of Hedge Funds and F&C Select Alpha Fund of Hedge fund.
F&C is also looking at new income based trusts as well as a European fund of private equity funds, designed to broaden the appeal of Hamish Mair’s private equity expertise.
The Balanced Alpha Fund of Hedge Funds is currently available with an Irish listing. The fund is managed by Anthony Cullinan and Francois Barthelemy and has delivered a return of 7.05% over the past year. It has an objective that specifically targets strategies that are uncorrelated to traditional mandates.
The target net annual target return is 5% with a volatility of 5%. The Select fund has a net annual target return of 10% with a 10% volatility. The largest portion of the vehicle is currently allocated to credit strategies though convertible bond arbitrage and distressed debt also figure.