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16 Mar 2007

F&C to Launch More Hedge Funds "As the Need Arises"

F&C Asset Management PLC is planning on launching its first private equity fund of funds product for institutional investors. The new fund will invest in event-driven hedge funds, which bet on M&A, share buy-backs and other corporate events.

The new fund will invest in between 20 and 40 hedge funds selected and monitored by F&C Partners. Alain Grisay, F&C's CEO, said at a press conference: "We are near the completion of our first new European private equity limited partnership." The first soft closing for the fund is expected in a couple of weeks and initial institutional commitment could be in the region of E130 million ($173 million).

F&C is also pursuing alternative investments such as hedge funds with a global diversified fixed income products. "Further hedge funds will be launched as and when we identify the right opportunity", he said. This is part of a three-year plan to focus on specialised and high-fee fund management activities such as hedge funds and LDI's (Liability Driven Investments).

Earlier this month a new portable alpha fund was launched using long/short bets on assets, markets and currencies through the use of derivatives.

"We are convinced that this product has the potential to achieve significant scale," Grisay said. The results for the new strategic plan will be visible by 2009, the CEO pledged.

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