New Star Asset Management is launching its own hedge fund index tracking application which will be linked to the RBC Hedge 250 Index.
The Hedge Exchange Traded Security (ETS), which has been launched with the backing of UBS Investment Bank, is designed to provide returns representative of the hedge fund industry.
The RBS index includes 250 hedge funds covering nine different investment strategies, with closed funds also covered. Investors are expecting returns of something in the region of nine to 12 per cent per year.