fund of hedge funds aims to provide returns of 7%pa above three-month us treasury bills
Baring Asset Management (BAM) has launched an Asian fund of hedge funds which aims to provide long-term returns of around 7%pa above three month US Treasury bills.
The strategy of the Baring Asia Hedge Select fund is to capture the upside in rising markets and protect capital when they drop.
The fund will invest mainly in equity long-short Asia Pacific hedge funds and will be managed by Tom Maier, head of BAM's alternative investment team.
He will be supported by investment boutique Fauchier Partners, who will act as advisers on manager selection and strategy allocation.
BAM intends to keep manager correlation low and reduce overall volatility by using between 10 and 20 funds with varying investment techniques, geographical preferences and risk profiles. It is expected to have a low correlation with index-relative strategies. Maier said: 'The investment case for the Far East markets, especially outside Japan, is strong.
In China for example, the role of the state in the economy has declined sharply in many sectors and since joining the World Trade Organisation, key economic sectors have been opened up to free trade.
'This has acted as a catalyst for further reform, improved efficiency and long-term growth in both China and in the Asia Pacific region as a whole.' The Baring Asia Hedge Select Fund has a minimum investment of $100,000 and is available to both private and institutional investors from 1 May.
The annual management fee is 1.5% and minimum investment is $100,000.
Shares are denominated in dollar, euro and sterling with an administration and custody fee of 0.15% per annum for the dollar share class and 0.17% for euro and sterling.
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