Baring Asset Management is gearing up to launch a new hedge fund that will invest in the Asia (ex-Japan) region.
The new absolute return fund, which is scheduled to launch on March 1, is being structured as a multi-strategy equity vehicle. It has a target return of more than 20% per year with maximum volatility of 15%.
The fund is being run by Adrian Au, who said the new offering will give investors access to tremendous growth in Asia. "The strategies employed will include thematic, directional, arbitrage, event driven, pairs trading and other liquid investment strategies that can produce uncorrelated returns," said Au.
"The portfolio will consist of approximately 50 diversified positions. The aim is to create a relatively beta neutral portfolio that is uncorrelated to the Asian markets and not dependent on directional bets.”
The fund is slated to be listed on the Irish Stock Exchange. There will be an annual management fee of 1.75% and a performance fee of 20%, with a high-water mark. The fund provides monthly liquidity with no lock up and its minimum investment will be €125,000 (US$184,798).