View more on these topics

3A adds further enhancements to range

Fund of hedge fund manager 3A has added six funds of hedge funds to its alternative capital enhancement Sicav range.

The funds comprise three ACE Asia funds and three ACE opportunities funds denominated in different currencies.

The Asia funds aim to benefit from growth in countries such as China, with lower volatility than long-only funds. The company says acquiring an Asian office last year was crucial. Hedge funds open and close rapidly, so a team based elsewhere might be aware of a fund only once it had closed.

The opportunities funds invest in a portfolio of opportunistic hedge funds that will benefit from short to medium-term investment themes. Macro strategies may be used to access the theme of the US economic slowdown, credit strategies may tap into the theme of rising default rates while Russia, technology and gold may be explored through long-short equity strategies.

The funds were launched as satellite holdings to boost the returns that investors are already getting from core holdings in multi-strategy hedge funds. The Asia funds will be diversified while the opportunities funds will have concentrated portfolios.

3A is part of the Geneva-based banking group SYZ & Co,

SYZ & Co head of communications Ricardo Peyro says: “Returns that can be achieved in a normal balanced hedge fund portfolio are lower than 10 years ago.

“To enhance returns, you can use leverage or produce a more concentrated portfolio. More managers and more styles diversify the portfolio but the potential returns go down.”

Recommended

Funnell defends fund fee

GLG, the outsourced manager of Virgin Money’s new climate change fund, has responded to adviser criticism of the product by claiming it is a progressive step in the market.Advisers have questioned the fund’s green credentials and the 20 per cent performance fee for beating bank base rate.Fund manager Ben Funnell says the fund focuses on […]

Suitable case for treatment

Perhaps I am just naive. I have always found it quite difficult to understand the need to have an initiative called treating customers fairly. After all, shouldn’t service companies being doing that already? Isn’t that the core of their business offering?

Going for gold

Despite the recent fall, gold prices should continue to rise and some forecasters believe the price may reach $2,000 an ounce in the medium term. It would need to rise to this figure to reach an all-time high in real terms after taking into account inflation since 1980.

Tony Blair takes on advisory role at Zurich

Former Prime Minister Tony Blair has signed an advisory agreement with Zurich Financial Services to provide guidance on international politics. As part of the agreement Blair, who recently signed up to advise JP Morgan for £2.52m per year, will advise Zurich’s chief executive officer James Schiro and provide general guidance on developments and trends in […]

Guide

Guide: what you need to consider for your auto-enrolment project

In this guide, Johnson Fleming reveals what items you need to understand to gauge the impact of auto-enrolment on your business. The guide focuses on: the impact that your auto-enrolment scheme will have on you; assessing your workforce; understanding your staging date; reviewing your current provision; and modelling contribution levels and costs.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment