onshore absolute return fund launches are based on guernsey vehicles
Kleinwort Benson has launched two onshore multi-asset absolute return funds based on the portfolios of their Guernsey-based Elite range.
The CF KB Endeavour Absolute Return fund and the CF KB Endeavour Balanced Total Return portfolio replicate the offshore Elite vehicles and invest in traditional as well as alternative asset classes such as real estate, commodities, hedge funds and private equity.
The CF KB Endeavour Absolute Return fund aims to deliver long-term annual returns of 2% above Libor, and has a volatility level which resembles short to medium-term gilts. The CF KB Endeavour Balanced Total Return vehicle seeks to generate long-term annual returns of 4% above Libor, and has a volatility level which resembles medium to long-term gilts.
Since the offshore funds were launched in August 2005, the Elite Balanced Return fund has returned 9.9%, while the Elite Absolute fund has performed 6.4%.
Martin Anderson, spokesperson for Kleinwort Benson, said: "Although the Elite products are sold back into the UK, they are not FSA regulated. Advisers had clients who were concerned about buying products which were not FSA approved and wanted an onshore version of it. The products were launched with these investors in mind."
The minimum investment is £100,000 for each. Both products have an initial charge of 5% and an annual management charge of 1.6%. Intermediaries can receive 3% commission as well as a yearly trail of 0.5%. The funds are UK Oeics and are also available throughout Europe.
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation