Henderson Global Investors has introduced a fund of hedge funds aimed at experienced investors who are looking for a medium-risk offshore investment.
The Henderson absolute return portfolio invests in a range of Henderson's hedge funds, but particularly those that use a long and short equity strategy. This is where the fund manager sells stocks with the intention of buying them back when the prices fall.
The volatility of global stockmarkets and their tendency to follow each other when they go up or down, has led to increasing interest in hedge funds by fund managers and investors. The recent fall in interest rates has also meant that investors who usually use building society accounts are now more open to a move up the investment risk ladder and into stockmarket investments or an alternative like hedge funds.
The Henderson absolute return portfolio is eligible for individual savings account investments and is also available as a Personal equity plan (Pep) transfer, which is likely to boost its appeal. Clients who want to move their Pep money around may find it useful to consolidate their investments or if their present fund manager is not performing as well as expected.