London-based Investec Asset Management (Investec) has launched a second tranche of its fund of hedge funds, Investec Absolute Return Fund Series.
The Guernsey-domiciled, Dublin-listed Investec Absolute Return Fund Series II aims to achieve returns of between 5-8 per cent in excess of US Dollar cash returns over rolling 3 year periods with relatively low volatility.
David Aird, Joint Managing Director of Investec Fund Managers, said: "We are very excited about the prospects for the Investec Absolute Return Fund Series II. Its sister fund, the Investec Absolute Return Fund Series I, raised over US$180 million and has built up a strong performance track record
Mr Aird said: "Over 2002 the fund achieved positive returns of 3.7 per cent against the HFRI Hedge Fund of Funds Index rising just 1.1 per cent and the average offshore US Dollar money market fund rising 1.2 per cent. The performance of the Series I fund suggests that the Investec Absolute Return Fund Series II has the potential to add value even in the most exceptional and adverse market conditions."
The management of the Investec Absolute Return Fund Series is delegated to Paris-based Olympia Capital Management, the specialist hedge fund of funds manager.
Olympia's flagship fund the Olympia Star Series, has over the last 10 years achieved an annual compound return of 12.47per cent after all fees.
Unlike many competing products, the Investec Absolute Return Fund Series II does not charge investors an annual performance fee. The fund will deal monthly with a minimum investment level of US$10,000.
The fund of hedge fund's Model Portfolio Strategy Allocation, expressed in percentage terms, is as follows: Global Macro 23.7; Fixed income arbitrage 12.9; Convertible arbitrage 11.8; US long/short 7.5; Europe long/short 7.5; Mortgage-backed securities 6.6; UK Equities 5.9; Event driven 4.8; Trend followers 4.8; Japan Equities 3.2; Short-term traders 3.2; Distressed Securities 3.2; Credit Arbitrage 2.1; Statistical arbitrage 1.6; Currency Traders 1.1.
Background Note: Investec Asset Management (Investec) is a specialist investment management company providing a range of domestic and international portfolio management services and products to institutional and individual investors worldwide.
As at 31 December 2002, Investec managed assets in excess of £16 billion on behalf of pension funds, charities, governments, corporations and individual investors.
It has offices in the UK, Southern Africa, Hong Kong, the United States, Ireland and the Channel Islands employing over 80 investment professionals.