Bank Leu, the Switzerland-based private bank, launched the Leu Absolute World Strategy 0/50 fund in ...
Bank Leu, the Switzerland-based private bank, launched the Leu Absolute World Strategy 0/50 fund in November, geared to capital preservation and utilising varying weightings in numerous asset classes including money markets instruments, equities and funds of hedge funds.
Thomas Frey, in new product development at Bank Leu, who designed the product, said investments to the various asset classes are actively managed and adjusted regularly to yield a positive overall return over a 12-month period. Classified as a public fund without special risk, it is open to all investors, available in Swiss francs, dollars or euros, with a minimum investment of $100/E100/CHF100. There is currently $50m in the fund, mostly proprietary, although external investment is arriving daily.
Frey said it has a maximum weighting of 30% to fund of hedge funds (FOHF), part of the legal requirements in registering the product under Swiss law. Weighting to FOHFs is unlikely to fall far below this mark, added Markus Baechtold, the fund's portfolio manager, because of the stability and diversification it provides. Only Bank Leu's four in-house FOHFs - US and European equity long/ short, relative value and diversified funds - are considered for investment, Frey said. External FOHFs are avoided because of the bank's lack of time and expertise in performing the necessary due diligence, he added.
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