The F&C Group will launch the Thames River Global Emerging Markets Absolute Return Fund managed by Kristof Bulkai and Hugo Roberts.
The fund, to be launched June 1, will target annual returns in the high teens (net fees), employ a top-down macro approach, and draw on the absolute return expertise of the team at Thames River, a boutique asset manager acquired by F&C in 2010.
Bulkai and Rogers will join the 11-member F&C emerging equities team led by Jeff Chowdhry, which managed $5.6 billion of emerging and Asia ex-Japan equity assets.
Lead manager Kristof Bulkai said: "In the past decade the rising tide in emerging markets has lifted all boats. But there is an increasing divergence in performance between sectors, which makes an absolute return approach more appropriate going forward.
"But while many supposedly ‘absolute return' funds oscillate between being fully invested in equities and having a high cash weighting, this fund will be as active on the short side as it is in its long portfolio. That approach has enabled us to make a positive return on the Water & Agriculture Absolute Return fund over the last two years in spite of the challenging market backdrop."
F&C is a diversified investment manager operating in nine countries and managing assets worth £105.8 billion as of December 31, 2010.