LONDON (HedgeWorld.com)–Emergent Asset Management Ltd. will launch two new feeder funds aimed at investors looking for macro exposure to global and emerging markets hedge fund strategies.
The Emergent Global Macro Fund and Emergent Diversified Emerging Markets Macro Fund are scheduled to launch Feb. 1, according to a news release from Emergent.
“Creating these feeder funds allows us to offer investors access to our investment technique through a truly global macro portfolio or an emerging markets macro portfolio, while also smoothing returns and volatility,” said Susan Payne, Emergent’s chief executive.
Emergent officials are recommending their Global Macro Fund to investors looking for “general global exposure,” according to a news release. It has the smoothest return curve and lowest volatility of any of Emergent’s products, Emergent officials said.
The fund will combine 25% exposure to Emergent’s Alternative Emerging Debt, 25% to the Ballistic Emerging Equities and 50% to the Cosmopolitan Developed Markets Macro fund.
The Emergent Global Fund has returned 9.6 % in its first 10 months of pre-launch trading, Emergent officials said.
The Emergent Diversified Emerging Markets Macro Fund will include 50% exposure to the Alternative Emerging Debt Fund and 50% to the Ballistic Emerging Equity Fund. Since its inception as a product in January 2001, the Diversified Emerging Markets Macro Fund is up 46.7%.
Both funds will be domiciled in Bermuda and listed on the Irish Stock Exchange. They have been formed as open-ended investment companies.
The minimum investments are US$100,000 for both funds. Emergent said it is targeting eventual assets under management of US$250 million for the Diversified Emerging Markets Macro Fund and US$500 million for the Global Macro Fund.
Both funds will charge a 2% management fee and a 20% fee on performance.