According to reports, the vehicle will be listed on both the London and Frankfurt exchanges and will look to raise in excess of £300m. The fund will track the holdings of the six existing Marshall Wace Top hedge fund strategies.
The launch is seen as a way to rebuild the European hedge fund’s asset base, which has fallen from £9.7bn in early 2008 to £3.1bn. Marshall Wace expects the ETF to return 8 to 10 per cent per annum.
In addition to the 0.25 per cent running cost of the ETF, the underlying structure has a 1.5 per cent annual charge and a 20 per cent performance fee.
The traded optimised portfolio system strategy was formed in 2001 by Anthony Clarke and Ian Wace, the co-founder of the firm. The system takes buy and sell recommendations from hundreds of brokers on a daily basis.