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F&C offers derivatives-based fund

F&C has launched a derivatives-based investment fund to provide investors with an alternative to traditional and volatile asset classes.

The F&C active return fund will be co-managed by Stephen Crewe and Chris Childs and targets a return of 2-4 per cent a year over short-term money market rates, net of costs, with low volatility.

Derivatives in the portfolio will focus on devel- oped market equities, predominantly in Europe and the US, with emphasis on larger cap indices for greater liquidity.

The fund will also use non-equity sub-strategies such as portfolio hedging and volatility trading in credit and currencies.

It has a target weighting of over 90 per cent in liquid investments such as cash, deposits and floating rate notes.

Unlike a hedge fund, the active return fund will feature daily single pricing, a simple fee structure and daily liquidity through a Luxemburg-domiciled Ucits III Sicav fund structure.

The fund launches with euro-denominated share classes for retail investors.

Initial charge is up to 5 per cent and annual charge is 1.5 per cent.

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