Threadneedle Asset Management is readying a UCITS III-compliant version of its U.K. long/short equity hedge fund.
The new UK Absolute Alpha fund will be a regulator-friendly version of Threadneedle’s UK Crescendo Fund. Unlike its predecessor, which is domiciled in the Cayman Islands, the new fund will call the U.K. itself home.
The UK Absolute Alpha fund will also outlive the fund on which it is based: Threadneedle plans to close Crescendo, which has enjoyed annualized returns of 11.64% since its inception in 2001, in October.
The new fund will be managed by Chris Kinder and Mark Westwood. It will invest primarily in stocks included on the FTSE All-Share Index, but will also invest in smaller companies listed on London’s Alternative Investment Market.
UK Absolute Alpha institutional share class will charge 1% for management and 20% for performance above the three-month Libor rate, and features a £500,000 minimum investment. JPMorgan Chase will serve as administrator and custodian.
The new fund will also be available in a retail share class, whose investors will pay a 3.75% initial charge, 1.5% management fee and 20% performance fee.