Nomura has launched the HFRq UCITS III Fund. The fund gives investors exposure to the HFRq UCITS III Index, in a regulated, transparent and cost effective manner and is the latest in the series of open-ended UCITS III compliant funds on the Enovara plc platform.

The fund has been launched in collaboration with Hedge Fund Research, HFR Asset Management and Quantitative Equity Strategies.

Unique amongst hedge fund replicators, the index exclusively references liquid and transparent instruments, and incorporates forward looking risk metrics, in addition to historical data, in its replication portfolio construction methodology.

The index components are selected on the basis of an algorithmic and rules-based methodology in an attempt to achieve a high correlation to the performance of the HFRI Fund Weighted Composite Index which reflects the performance of a diversified pool of hedge funds. The underlying methodology is designed by QES and the risk sensitivity data is provided by HFRAM.The index represents long and short exchange traded futures contracts selected and maintained by HFR as Index Sponsor, upon the advice of QES as Index Advisor, in order to provide exposure across global equities, global fixed income, commodities, currencies and volatility. i

The fund is currently available for UK and Irish retail and institutional investors with other European jurisdictions, to include France and Switzerland set to follow over the coming months.

“Following the success of previous products launched on our UCITS III platform, we are confident that the HFRq UCITS III Fund will be well received,” explained Mohamed Yangui, Managing Director, Head of Product Development and Structuring Group. “The Fund gives investors exposure to the only passive hedge fund replication Index launched and sponsored by HFR, the main research and benchmark provider in the hedge fund industry for the past 18 years. HFR indices are the most widely used and recognised hedge fund indices in the market.”