Schroders plc is launching SAIF (Schroders' Alternative Investment Fund) Blue Mountain, a fund of hedge funds.
SAIF Blue Mountain is the third in Schroders' range of fund of hedge funds, the others being Blue Star and Blue Sea.
Schroders Blue Mountain is the most aggressive of the range, with the objective of achieving absolute annualised returns of 10-15 per cent from a high return / higher risk focused portfolio of hedge funds.
Blue Sea, by contrast, aims to achieve absolute returns of c.6-9 per cent per annum with low correlation to traditional equity benchmarks. Blue Star seeks returns in line with global equity indices but with limited correlation to and lower risk than listed equity markets.
Sally Tennant, Chief Executive, Schroders Private Bank, said:"Blue Mountain is an aggressive, high return fund of funds that aims to generate significant returns whether equity markets are falling or rising. Compared to the other Schroders fund of hedge funds it is more highly concentrated and is more focused on high returns.
She added: "With the addition of Blue Mountain, investors can now select whatever risk return objective they wish using a combination of the funds."
Blue Mountain will be invested in a concentrated portfolio of 8-12 hedge funds. Schroders stated that these hedge funds will be included following a rigorous selection process in which Schroders will be seeking strong conviction in investment strategy, implementation and business capability and which have the expectation of achieving and exceeding Blue Mountain's risk and return objectives.
SAIF Blue Mountain will be open to investors from Monday 19 May 2003. As the third in Schroders' range of SAIF fund of funds, each of which has a different risk / return profile, investors can now target a number of risk/return objectives by using one, two or all three of the funds either alone or in combination.
Background Note: Schroders plc is a global asset management company with £88.3 billion under management as at 31 December 2002. Its clients include charities, corporations, high net worth individuals, insurance companies, local and public authorities, pension funds, and retail investors.