In a move designed to provide access to its top-flight hedge fund range, Henderson Global Investors will launch the Henderson Total Return Fund on 01 September 2006.
Managed by Bill McQuaker, director of Multi-Manager funds, the fund will invest in a range of nine Henderson managed hedge funds, including some of the funds currently capped, and have a target return of 12-15%.
McQuaker has identified the hedge funds with investment processes capable of generating absolute positive returns with acceptable volatility. He will actively manage the exposure of the fund to these underlying strategies to further enhance the risk and return characteristics of the fund.
With a minimum investment of USD 100,000 (or currency equivalent - Sterling or Euro), the fund is aimed at institutional investors, high net worth clients, private banks and family offices. It will seek to achieve absolute returns for investors while maintaining volatility at an 'acceptably low level'. With its low volatility and broad diversification across asset classes, geographic regions and investment style, Henderson believes the fund is particularly suited to those investors who want exposure to hedge funds but at a lower risk than investing in a single strategy fund.
Henderson's hedge fund business comprises four 'pillars' of funds: classic long short directional equity; multi strategy equity market neutral; fixed income and equity style rotational funds.
'Since 1999 we have developed a broad range of hedge funds by leveraging the skills of some of our best in-house portfolio managers, including Stephen Peak, Daniel Beharall, William Garnett and David Elms,' says Kate O'Neill, Henderson's director of hedge funds. 'Bill has built up a great track record since taking over the retail multi manager funds at Henderson. It is a logical step to launch a fund that combines his active asset allocation skills with our existing hedge fund strengths.
'This fund is ideal for those wanting to gain exposure to a variety of hedge fund strategies and markets, with Bill's asset allocation adding an effective '10th hedge fund'.'
In July this year Henderson announced that hedge fund assets under management had grown over 50 per cent in the first half of 2006 from USD 1.8 billion in December 2005 to USD 3 billion. Over the last 12 months three new hedge funds were added to the stable including the European Style Rotational Fund and the Global Equity Multi Strategy Fund. Further funds are due to be launched this year.
Domiciled in the Cayman Islands, the Fund will be listed on the Irish Stock Exchange. It will have three share classes - US Dollars, Euros, and Pounds Sterling - and the minimum initial lump sum investment will be US$100,000 or its equivalent.
The 9 single Henderson hedge funds in the Total Return Fund are:
Henderson Asia Pacific Absolute Return Fund
Henderson European Absolute Return Fund
Henderson Global Fixed Income Absolute Return Fund
Henderson Japan Absolute Return Fund
Henderson UK Equity Long Short Fund
Henderson North American Equity Multi-Strategy Fund
Henderson Pan-European Equity Multi-Strategy Fund
Henderson European Style Rotational Long Short Fund
Henderson Global Currency Absolute Return Fund