Nedgroup fund of funds raises £17.5m since launch

The fund has returned 3.04pc since launch – compared with a fall in the Barclays and EurekaHedge indices of between 2pc and 2.5pc for the year.

This comes after the firm announced it had won a $9m mandate from asset management firm Attica Vermogensbeheer.

The specialist fund of hedge funds provider’s fund – Nedgroup Investments Premium Portfolio – was launched in a bid to give pension schemes and other institutional investors access to assets uncorrelated to equity markets (PP Online, February 28).

It is targeting an annual return of 8-12 percentage points above the London interbank offered rate (LIBOR) over the medium to long term and has a volatility objective of less than 3pc.

Nedgroup Investment chief investment officer Larry Jones said: "We have a facility to hedge generic market risk through derivatives overlay.

"This means that our returns do not rely on market conditions, and provides investors with the diversification benefit such an approach brings. We felt that there was a space in the market for an innovation like this, and the fund’s returns have so far vindicated this rationale."