LGT Capital Partners, a $18 billion alternative asset and fund of fund manager, is to launch a UCITS fund that will allow investors access into its Crown Managed Futures flagship fund.
Crown Managed Futures has assets under management of $670 million.
According to Werner von Baum, Partner, LGT CP: Managed futures offer true diversification and we believe they are a valuable component of investors portfolios in all market environments. Allocating to this space can reduce volatility and market risk of a portfolio, helping to generate superior risk adjusted returns.
Similar to the flagship fund, it will provide exposure to hedge fund managers trading commodities, equities, fixed income and foreign exchange. Exposure will be achieved via a UCITS eligible index of currently 15 managed accounts, which provide full position transparency and high liquidity, a core requirement for many hedge fund investors.
At present, UCITS funds are worth $6 trillion, but only $30 billion is invested in alternative strategies. This allocation is set to increase according to KdK Asset Management, with 80% of established fund of hedge fund providers intend to launch some form of UCITS-investing vehicle over 2010.
Baum explained that strong demand from private clients, intermediaries and institutional clients led to the launch of the UCITS product.