As an increasingly popular fund type it is no surprise that January saw the launch of a number of UCITS-compliant funds of hedge funds.
The USD 100mn UK-based Blacksquare Capital has launched a UCITS-compliant vehicle named the IFSL BlackSquare Diversified Absolute Return Fund that will invest in a diverse range of strategies – including global equities, bonds, foreign exchange and commodities – and will target an annual volatility of 8%.
Pictet Alternative Investments is another Europe-based manager that is planning to launch a UCITS compliant fund by the end of February and intends to create a portfolio of 15-20 managers. The GBP 4bn UK-based Aberdeen Asset Management is looking to add some exposure to UCITS-compliant managers and is specifically looking for funds that offer both daily and fortnightly liquidity.
The UK-based USD 2.2bn Gems Investment Research is also gearing up to launch a multi-manager fund concentrated on UCITS investments. Also following the trend is USD 9.5 billion funds of hedge funds manager GAM, it plans to launch two funds to focus on UCITS investments. The two funds will be: GAM Star Composite Global Equity and GAM Star Composite Equity and Trading. The Global Equity fund will be a more conventional portfolio and its underlying funds will be GAM equity strategies.