Henderson Investors is to launch an offshore long/short Pacific absolute return fund for high net wo...
Henderson Investors is to launch an offshore long/short Pacific absolute return fund for high net worth investors.
The group is looking to utilize the success of its highly-rated Pacific and Emerging Markets team, led by Heather Manners.
The objective of the dollar-denominated Dublin-listed fund, is to produce an absolute return of 20% by investing in equities in Asia.
The fund is an open ended investment company and is aimed at clients with a minimum of US$100,000 to invest. It offers intermediaries commission of 3%. It has a management fee of 1.25% and a performance fee of 20% of profits over the stated 20% objective. Henderson will be seeding the fund up to US$5m.
Manners, who has run the frAA-rated Henderson Asian Enterprise Fund since 1990, said that one aim of the fund was to reproduce the low volatility of the Asian Enterprise Fund which has a volatility of 8.6% against a sector average of 9.8%, according to S&P.
Manners said: "I am going to achieve this by having a portfolio which is no more than 50% net long, as a rule of thumb. Long positions could be anything from 0% to 120%, shorts anything from 0% to 70%. Typically on the long side we will have 25 to 30 stocks and on the short side up to 15 or 20 maximum. In practice that could mean we will be net short, which we do not have a problem with."
She has been running a model portfolio in house for the past two months which is currently 60% net long. She said: "It will be a long/short portfolio specifically focusing on protected downside. In some markets in Asia you cannot short legally so it is one of the harder regions to run a fund where you are market neutral or fully hedged."
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till