The firm says Sam Liddle is likely to run the fund, which is expected to be domiciled offshore, but a firm decision has not been made at this stage.
Vega will be more aggressive than Cappella, another multi-asset portfolio planned by Miton for fund manager Steve Brann. Capella will be slightly more aggressive than its existing Arcturus portfolio, with targeted returns of Libor plus 5 per cent.
Miton says it does not envisage Capella as a pure fund of hedge funds but it would ideally launch it as a fund of alternative investment funds. The firm favours this structure because it would allow greater flexibility to invest in hedge funds than the non-Ucits retail scheme structure which limits portfolios to a maximum of 20 per cent in alternative assets.
Miton thinks it likely that it will have to launch Capella initially as a Nurs fund and then switch to a Faif structure because the FSA has postponed publication of the proposals until next year while it considers some tax issues.
Brann says: “There is a misconception among some investors and advisers that hedge funds are risky but with Arcturus we wanted to show that they can be used to reduce risk. We showed it was possible to use them in a portfolio to dampen volatility.
“Capella is going to be a little more aggressive and will hopefully launch as a Faif. The FSA’s timetable for Faifs has slipped so it looks likely that we will launch it as a Nurs and then extend it as a Faif when it comes along. If Faifs are not introduced we will be content with Nurs although it would be nice to have that greater flexibility.”