Amex targets conservative investors with fund launch

American Express has launched its third fund of hedge funds aimed at risk-averse investors. The group's offering will be further expanded through the launch of a guaranteed note linked to the Global Market Neutral Moderate Fund of Funds Portfolio.

The new fund is called the Global Market Neutral Conservative Fund of Funds portfolio and aims to earn 2%-6% per year over the dollar three-month treasury bill rate.

Robert Friedman, head of global investment services at American Express Bank, expects the strongest demand to be from conservative clients looking to enhance the yields they receive on their deposits, or other cash investments, without encountering significant volatility.

Because this fund is targeting the risk-averse investor, the fund's portfolio is diversified and conservative. Its asset allocation is split among five investment styles: convertible arbitrage; volatility arbitrage; merger arbitrage; equity market neutral; and fixed income arbitrage.

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