The only fund of hedge funds in which charities can invest is to be extended to allow good causes in...
The only fund of hedge funds in which charities can invest is to be extended to allow good causes in Scotland to benefit.
The Absolute Return Trust for Charities is to be made available to Scottish charities as well in England and Wales.
The Absolute Return Trust for Charities is managed by Cazenove's investment fund arm, on advice from hedge fund specialist Fauchier Partners.
The fund is the only fund of hedge funds that that charities in England and Wales are allowed to invest in. It was given authorisation by the Charity Commission in 2002.
In the last five years the fund has grown to £260m under management and it now covers more than 200 charities. Well-known charities that invest in include Marie Curie Cancer Care and The Rhodes Trust.
Now legislation, due to be heard before the Scottish Parliament later this year, will allow Scottish charities to benefit too.
The fund spreads the risk among 30 funds. It targets returns of 8-10% over rolling five-year periods, and has returned 8.75% since its launch in December 2002.
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