Thames River Capital has launched a Ucits III absolute return fund of funds for manager Ken Kinsey-Quick and assistant manager James Rous.
Launched on 13 January, the Thames River Absolute Return Fund, which has already received £47m from investors, has a target return of 5-10% per annum with a 5% volatility target and weekly liquidity.
It will aim to outperform global bonds, as measured by the Barclays Aggregate Bond Index, and will invest in a portfolio of 20-40 absolute return funds with allocations of between 1- 5% of NAV. This will include equity long-short, global macro, convertibles, credit, event driven and emerging markets long-short strategies.
“Markets have rallied aggressively since their 2009 March lows but many investors missed the rally and remain nervous about investing post the upturn in the market whilst the return on cash is almost negligible,” said Thames River investment director, Michael Warren.
“This fund offers a suitable low risk alternative to the more cautious investor. As investors seek a higher return on their money, we believe the Thames River Absolute Return Fund can offer investors a well diversified, low volatility fund investing in funds managed by a growing pool of blue-chip managers in the absolute return sector.”
It will invest on a global basis, across multiple asset classes with a bias towards more liquid asset classes and the developed world.
Initially the managers intend to focus on market neutral equity and macro strategies reflecting their view equities will struggle to break 2007’s highs and that volatile markets will suit macro managers.
IA FUND FACTS:
Name: The Thames River Absolute Return Fund
Domicile: Dublin
Minimum investment: 1,000 £,$,€,CHF / 8,000 NOK, SEK
Share classes: GBP, EUR, USD, SEK, NOK, CHF (hedged)
Type of fund: open-ended absolute return fund of funds
Annual charge: 1.5%
Performance fee: 10% above LIBOR hurdle with high water mark
Launch date: 13 January 2010
Managers: Ken Kinsey-Quick and assistant manager James Rous.
UK distributor status: yes
