LUXEMBOURG - Nordea Alternative Investment, part of the Nordea Group, has announced plans to launch a new range of Luxembourg-domiciled hedge funds.
Nordea Alternative Investment, the alternative investment platform of Nordea Investment Funds, which manages the company, will launch three sub-funds including a derivatives fund, a fixed-income arbitrage fund and a European long/short fund.
The funds are poised for launch on May 2.
Lars Erik Hogh, head of Nordea Alternative Products, said: “The team introduced the arbitrage and European equity hedge concepts a number of years ago and was delighted by the success of these products. We have therefore decided to open them up to a larger investor base via SICAV II vehicle.”
To make the increase the appeal of the managed derivatives fund to a wider investor circle, Nordea said it had hedged out the event risk to control downside risk and added diversification to the strategy.
“The managed derivatives fund is quite possibly the most exciting of our new products as it combines our proven expertise in trading volatility with limiting the downside risk to create a stable risk-return profile,” Hogh said.
The European equity hedge fund aims for strong returns in both rising and falling European markets, Nordea said.
“Our belief is that we can create sustainable alpha by focussing our investments on stocks with low risks and stable returns,” Hogh said. “To achieve this, we utilise Nordea’s extensive research base. Backing this up, our Swedish vehicle, which has used this concept, has a Sharpe Ratio of 1.5 since launch.”
The SICAV II structure, which houses the products, allows the investor greater fiscal transparency and the opportunity to invest in a range of products under a single umbrella, Nordea said.
Nordea Investment Funds was officially authorised as a UCITS III-compliant management company in February last year.
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