UK - Gartmore Investment Management has launched Alpha-Gen Credit - its 10th standalone hedge fund aimed at schemes and other institutional investors.
The fund will principally take both long and short positions in European and US bonds and derivatives, as well as emerging markets in Asia, South America, Africa and Eastern Europe.
Gartmore’s head of US fixed income, Varkki Charko, and fixed income senior portfolio manager, Mark Wauton, will run the fund. They will be backed by 17 global credit analysts.
The fund aims to return eight percentage points more than the London InterBank Offered Rate (LIBOR), which was 1.5% at the start of the year. LIBOR is the base interest rate paid on deposits between banks in the eurodollar market. A eurodollar is a dollar deposited in a bank in a country where the currency is not the dollar.
Investors will be charged an annual management fee of 1.5% as well as 20% performance fee, subject to a “high water mark”.
Gartmore is looking to expand its standalone hedge fund range to meet what it believes will be the growing demand from schemes.
This week's edition of Professional Pensions is out now.
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The Pensions Regulator will consider if schemes should be required to have professional trustees and assess the case for greater regulation of administrators and system providers, PP can reveal.