Schroders Private Bank is making its debut in the hedge fund of funds market with the launch of its alternative strategies fund diversified.
Domiciled in Bermuda, the SASF diversified offshore fund will be a close-ended investment company investing in individual hedge funds and marketed directly to UK investors.
The fund is the first launched since Schroders' purchase of hedge fund boutique manager Beaumont this year and the addition of its alternative investment team to the private bank side of the business. The company says its development was in the pipeline well before these changes.
Schroders says it will aim for an absolute return of 6-9 per cent a year above sterling cash returns.
It will be targeted at Schroders' own high-net-worth client bank as well as being available to IFAs and other private banks.
SASF diversified combines a multi-strategy style through its investment in individual hedge funds with no performance fee.
The fund closes to new money on November 21.
Schroders alternative investment team executive director Tord Stallvik says: “A lot of thought has gone into the structure of this fund of funds to ensure we can give UK clients tax-efficient access to hedge funds.
“Such a fund should be able to protect capital at times of market crisis, assuming strong portfolio construction, if not produce positive returns, and this is, of course, particularly pertinent in today's markets.”