ABN Amro has launched a series of products based on a sustainable-investment fund of hedge funds.

The structured products are based on what ABN calls the first long/short fund of funds meeting sustainable investing criteria.

Launched on Monday, the fund of funds—run by Braxton Glasgow at Rye Brook, N.Y.-based Kenmar Group—invests in some 35 managers. Launched with $26 million from its first investor, the Global Eco Fund hopes to reach $100 million by the end of the year and as much as $400 million by the end of 2008, Asian Investor reports.

The managers hired by the fund of funds—17 based in the U.S., 13 in Europe and 5 in Asia—focus on social and environmental issues, with half of the portfolio invested in socially-responsible equities and sustainable environment assets, with the rest in a variety of asset classes, including financials, commodities, water, biotech, energy and weather. The fund is targeting a 10% to 12% annual return.

Investors will be able to invest in the Global Eco Fund through a variety of structured products devised by the Dutch bank, including leveraged products, principal-protected vehicles and Basel II-compliant offerings.

Related Story: Kenmar Preps Environmentally Friendly, Sustainable Hedge Fund Of Funds