GLOBAL (ex-US) - AMVESCAP-owned Invesco has launched its first hedge fund outside of the US owing to demand, said the firm.
The Dublin-domiciled Invesco Absolute Return Fund targets institutional and high net worth investors, and will invest in large cap US equities, as well as S&P500 Stock Index futures and US Treasury Bond futures.
Invesco said: “The fund has two main advantages - compelling risk-adjusted absolute returns for investors in a variety of market environments and a low correlation to traditional assets. These two advantages are especially attractive in the current volatile market conditions.”
The fund will use a bottom-up long-short US equity market neutral strategy with a top-down futures strategy for both stocks and bonds. It aims to provide a net return of around 10% on an annual basis, with an annual volatility of approximately 8%. The product can be hedged in either US dollars or Euros, and has a minimum subscription of E125,000.
Invesco’s structured products group, based in New York, will manage the product.
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