LGT Capital Partners, an alternative assets and fund of funds manager, is launching its Crown Managed Futures Ucits Fund to offer a broader range of investors access to its flagship managed futures strategy.
LGT has been investing in managed futures since 1996.
Crown Managed Futures, its flagship managed futures fund, has assets under management of USD670m. It has delivered an annualised gross return of 10.5 per cent since launch in October 2000, compared to -2.1 per cent for the MSCI World Index , showing almost zero correlation to equities.
Regulatory approval has been obtained and the fund is scheduled to launch on 4 May 2010. Similar to the flagship fund, it will provide exposure to hedge fund managers trading commodities, equities, fixed income and foreign exchange.
Exposure will be achieved via a Ucits eligible index of currently 15 managed accounts, which provide full position transparency and high liquidity.
Werner von Baum (pictured), partner at LGT, says: “Managed futures offer true diversification and we believe they are a valuable component of investors’ portfolios in all market environments. Allocating to this space can reduce volatility and market risk of a portfolio, helping to generate superior risk adjusted returns.
“Crown Managed Futures is one of our flagship products and we are launching an Ucits fund in this sector following strong demand from private clients, intermediaries and institutional clients who can benefit from the enhanced liquidity, transparency and regulatory oversight that such a product provides. For an Ucits product, it is of key importance that the underlying assets are well matched to the liquidity being offered to investors; managed futures is one of the most liquid hedge fund strategies available and is, therefore, an ideal fit.”