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.