NEW YORK (HedgeWorld.com)–Asset Alliance Corp. and Barclay Research Group Ltd., Fairfield, Iowa, are working on a registered futures fund of funds following a previously announced joint venture to promote Barclay futures indexes.
Asset Alliance registered the fund, called the BTOP50 CTA Index Fund, with the Securities and Exchange Commission June 6 and plans to sell shares in a public offering through Asset Alliance Investment Services Inc. Hart Financial Group LLC, Denver, was hired by the fund to assist with due diligence on the futures funds considered for inclusion in the offering. Asset Alliance and Barclay first got together in February to work on marketing futures funds .
The fund’s assets will be spread among future funds contained in the Barclay CTA Index based on preset rules. Almost all of the assets will be invested equally among the 20 or more of the largest commodity trading advisers in the Barclay index. The funds need to be open to new investment and meet other criteria, the filing states.
The fund will be sold with investor eligibility hurdles that are lower than what registered hedge funds have used. Investors need a net worth of at least US$150,000 (excluding home, furnishings and car) or both a net worth of US$45,000 and annual gross income of US$45,000, according to a filing on the fund. Individual states might have higher requirements.
The minimum investment is US$5,000. The fund will charge a 1% annual management fee and a 2% annually servicing fee, though the fund has applied with the SEC to charge a lesser servicing fee for investments of greater than US$100,000.
Skadden Arps Slate Meagher and Flom LLP, New York, is the legal counsel.