Barclays Capital has decided to launch the UCITS III-compliant Hedge Fund Replicator Fund in order to provide its investors with regulated, transparent exposure to hedge fund strategi
Barclays Capital has decided to launch the UCITS III-compliant Hedge Fund Replicator Fund in order to provide its investors with regulated, transparent exposure to hedge fund strategies. The fund’s performance will be based on an underlying index – the Long Barclays Alternatives Replicator (LBAR) Index – developed by the bank to lock-in the non-linear profile of hedge fund returns. The replication model underpinning the index was developed by BarCap’s Quantitative Portfolio Strategies team. To generate returns similar to aggregated hedge funds the index will track hedge funds’ performance across equity, fixed income, FX, volatility and commodity asset classes using an array of UCITS-compliant liquid instruments. “The Index objective is to earn returns that are similar to those of the aggregate hedge funds universe with better liquidity, higher transparency, scalability, and a lower fee structure,” Quantitative Portfolio Strategies’ director, Arik Ben Dor, told the press. The Lux-domiciled SICAV will be managed by Barclays Capital Fund Solutions; the asset management arm of BarCap. State Street has been selected as the fund’s administrator and custodian with PricewaterhouseCoopers providing auditing services.
