Subsidiary company Talorcan to launch three funds over the coming weeks
Abbey National has launched an alternative investment product through a subsidiary fund management company Talor can and is set to launch two more such funds in the coming weeks.
Talorcan Equity Pairs Plus was listed on the Irish stock exchange last week. The fund manager, Claire Bowman, will take a view on a sector and pick two companies within it, one which is undervalued and one that is overvalued. She will borrow shares of the overvalued company and sell them, using the receipts of that sale to purchase the undervalued stock, selling when the company comes back to equilibrium. The investment style of the fund will be neutral to value as a whole.
The forthcoming Talorcan Forex Fund is to establish positions in currency pairs in both developed and emerging markets. It aims to deliver above average returns to the level of risk created and independent of the general direction of global equity and bond markets.
The Talorcan Global Fund will invest across the range of the world's major capital or derivative markets. The portfolio will include stocks, bonds currencies and commodities. It will take a view on the direction of the market as a whole.
The funds are designed to attract a mix of high net worth and institutional investors and the funds will accept a maximum of 1,000 clients between them.
The target is to raise between £1.5bn to £2.5bn across all the funds. The minimum investment will be from E125,000 to E250,000 depending on the fund. The management charge will be 1.5% and the company will take a 20% performance fee.
Graham Pottinger, managing director of Abbey National Life Division, said: 'While alternative investment funds are currently a comparatively small part of the overall investment universe, the uncertainty over stock market returns is likely to ensure growing investor interest in the attractions of absolute returns in a risk con
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