Liberty Ermitage Group has launched a Liquid Assets Fund range with initial assets of US$20 million.
The Liberty Ermitage Liquid Assets Fund takes the form of a Cayman Segregated Portfolio Company. Designed by CIO Ian Cadby and his Jersey based investment team in response to significant client demand for cash-plus products (in a low interest rate environment, it aims to deliver yield without compromising credit risk or liquidity.
The Liquid Asset fund range is initially launched with two classes segregated portfolios – L1 and L2, each with offering US$, Euro, Sterling and SKR currency shares classes. L1 will be an actively managed portfolio of largely short duration government and high-grade corporate debt. The fund and has a total long-term target return objective of approximately is targeting Libor +50bp, allowing subscriptions and redemptions twice per month.
L2 will consist of be a blend of approximately 75% of the aforementioned low duration / risk bond portfolio, together with and up to 25% invested in low volatility / bond and bond substitute style hedge funds and has a total target return objective over the long-term of approximately Libor +350bp. L1 will allow subscriptions and redemptions twice per month and L2 will offer monthly liquidity. and will target returns of circa Libor +350bp
Liberty Ermitages market reputation has been built around our low risk bond substitute products such as our flagship $500 million Asset Selection fund of hedge funds,” says Ian Cadby, Chief Investment Officer at Liberty Ermitage. “There is, however, a gap in our product offering between this fund and our S&P AAA rated Money Funds, particularly amongst institutional clients, hedge fund managers and CTAs seeking a way of enhancing cash returns. In this low interest rate environment we expect these funds to have wide appeal and target investors will also include private client asset managers and intermediaries including law / accounting firms and trust companies.
The fund is a Cayman registered SPCSegregated Portfolio Company, managed by Liberty Ermitage Management (Bermuda) Limited, and advised by Liberty Ermitage Asset Management Jersey Limited. Annual Management fees haves been set at 0.5% per annum for L1 and 1.0% per annum for L2, with a performance fee equal to 15% per annum of the increase in the Net Asset Value of L2, above a defined Benchmark.