Iveagh Private Investment House, the Guinness family office and asset manager, and 47 Degrees North Capital Management, an alternative investment provider, have launched the Iveagh Newcits Fund.
The fund offers investors access to a diversified portfolio of Ucits regulated absolute return strategies, known as Newcits funds.
It will focus solely on absolute return strategies employing a global, multi-strategy portfolio allocation.
47, as sub-adviser for the fund, selects and recommends the underlying funds based on its fundamental bottom-up research methodology. Iveagh and 47 construct the portfolio in collaboration maintaining a focus on stable absolute return potential and diversification, even in turbulent markets.
The fund aims to produce consistent, low volatility performance largely uncorrelated with traditional markets within a highly liquid and secure Ucits structure. The target return will be six per cent to right per cent per annum (net of fees and costs) with a managed volatility of between three per cent and five per cent.
Iveagh is the initial investor in the fund which is also open to other investors in the UK, Continental Europe and Asia.
The Iveagh Newcits Fund is a daily-dealing, Dublin-domiciled fund which is also regulated in the UK. Minimum investment is GBP50,000, or the currency equivalent (in EUR, USD and CHF). The annual management charge is 1.5 per cent, and the performance fee is ten per cent over hurdle.
Iveagh chief executive officer Paul Ross says: “Our investment in absolute return Ucits funds goes back to 2008 when we were at the forefront of this paradigm shift in European absolute return investing. The combination of Iveagh’s asset allocation experience with 47’s thorough and robust process in specialist alternative investing creates an outstanding opportunity to expand our efforts with this dedicated Newcits fund.”
Claude Porret, chief executive of 47 Degrees North, adds: “We believe that the growth of absolute return strategies within the Ucits structure is creating many opportunities for our particular skills and expertise and that 47 can offer much needed analytical clarity in this fast-growing investment universe. Given ongoing events in the hedge fund industry, investors will value active selection and management of hedge fund risk by a highly experienced and successful team.”