Mellon Global Investments is to launch a Dublin-domiciled derivative based hedge fund for European retail investors.
It uses the same global tactical asset allocation (GTAA) strategy as the Mellon Alpha Access hedge fund, and looks at arbitrage opportunities across global equity, bond and currency markets. As the fund has an existing strategy, Standard and Poor’s has already awarded the fund an AA rating.
Alan Mearns, head of marketing at Mellon Global Investments, said: “The fund was launched following demand from our distributors in Europe. The institutional version is already available but we are planning to register the product in France, Spain and Italy for retail investors by January next year. We are also considering launching a sterling version of the product for UK investors as well as a dollar for investors in Latin America, Middle East and Asia.”
The fund has an annualised return of one month Euribor plus 4% over a three to five year rolling period. A performance fee of 20% is charged over any outperformance over the website. The product also has an annual management charge of 1.5%. The minimum investment is E5,000.
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