F&C Gears Up To Launch 130/30 Fund

Jul 26 2007 | 11:50am ET

U.K.-based F&C Asset Management is the latest asset management firm to enter the 130/30 space. The firm plans to launch its F&C UK Enhanced Alpha Fund in August, targeting a return of 4% over the FTSE All Share Index.

The offering will be structured as a SICAV, domiciled in Luxembourg, with a sterling share class for both institutional and retail investors. The fund will invest in U.K. stocks, employing a fundamental and bottom-up stock picking approach, according to fund documents.

The fund’s long portfolio will consist of 40 to 60 stocks and 10 to 15 stocks in its short book. Portfolio managers Makis Kaketsis and Luke Newman also manage F&C's UK Dynamic Fund and its Special Situations Fund respectively.

"As long-only fund managers, perhaps the greatest constraint to generating excess return is the inability to short, in other words our ability to express our negative view of a stock is very limited," Richard Wilson, head of U.K. equities at F&C Asset Management, said. "Our long only positions still need to be able to outperform the benchmark but by combining an element of netting off between the long and short positions, the risk return profile is also more favorable."

The new 130/30 charges management fees of 1% and a 20% incentive fee on any gains over the FTSE All Share index.

F&C managed some €151.4 billion under management (US$208.5 billion) as of March 31.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note