Neuberger Bremen has launched the Neuberger Berman Absolute Return Multi-Strategy Fund (ARMS), following the US regulated version of the same strategy launched in May 2012.
The multi-manager product targets positive absolute returns with low market exposure, through diversified allocations to proven hedge fund strategies. At the same time, it addresses the structural drawbacks of hedge fund investing through a client-friendly UCITS vehicle.
The structure offers investors key features such as daily dealing, no performance fees at any level, a capped total expense ratio, high levels of transparency and control of assets through the exclusive use of managed accounts.
The fund will be managed by Neuberger Berman’s alternative investment management group.
Fred Ingham (pictured), co-portfolio manager for the Neuberger Berman Absolute Return Multi-Strategy Fund, says: “In the current environment of low bond yields and longer term inflation risk, as well as uncertain equity valuations, hedge funds can offer a particularly attractive alternative, with the ability to benefit from rising rates, as well as from increasing dispersion in global equity markets.”
Dik van Lomwel, head of Neuberger Berman EMEA and LatAm, says: “We wanted to offer clients the opportunity to re-engage with hedge funds at an opportune time, but within a structure which directly tackles the historic drawbacks of cost, liquidity and transparency.”