19 Oct 2010
Barclays Capital has launched the Barclays Hedge Fund Replicator Fund, designed to offer investors exposure to the performance of the hedge fund industry through the Barclays Capital LBAR Alternative Index, in a regulated, transparent and cost efficient manner.
The Barclays Hedge Fund Replicator Fund is an open-ended, UCITS III fund, offering daily liquidity and is managed by Barclays Capital Fund Solutions, the asset management business of Barclays Capital. The replication methodology behind the Index was designed by BarCap’s Quantitative Portfolio Strategies team that has a decade of experience in developing synthetic replication products.
The factors of the index were selected based on the long-term determinants of hedge fund industry performance and the weights of the components are updated monthly based on their ability to explain observed hedge fund returns.
The Barclays Hedge Fund Replicator Fund is available for institutional investors in dollar, euro, sterling Swiss franc and yen classes. A retail share class of the fund is to be launched shortly.
The Barclays Hedge Fund Replicator Fund is an open-ended, UCITS III fund, offering daily liquidity and is managed by Barclays Capital Fund Solutions, the asset management business of Barclays Capital. The replication methodology behind the Index was designed by BarCap’s Quantitative Portfolio Strategies team that has a decade of experience in developing synthetic replication products.
“The development of the Barclays Capital LBAR Alternative Index began in late 2006,” said Arik Ben Dor, director at Quantitative Portfolio Strategies. “The replication methodology underlying the Index was previously traded from October 2007.The Index objective is to earn returns that are similar to those of the aggregate hedge funds universe with better liquidity, higher transparency, scalability, and a lower fee structure.”The performance and the tracking quality of the Index benefits from several innovations, including the use of options to capture the non-linear profile of hedge fund returns. It uses liquid and transparent instruments across asset classes including: equities, fixed income, volatility, commodities and FX.
“In addition to being an alternative to direct investing in hedge funds, the Barclays Hedge Fund Replicator Fund could be used for tactical asset allocation, fund of funds portfolio management and transition trades,” said Csaba Koppany, director, Equity and Funds Structured Markets. “Due to its UCITS fund format, the fund provides simple and regulated access to alternative investment returns.”
The factors of the index were selected based on the long-term determinants of hedge fund industry performance and the weights of the components are updated monthly based on their ability to explain observed hedge fund returns.
The Barclays Hedge Fund Replicator Fund is available for institutional investors in dollar, euro, sterling Swiss franc and yen classes. A retail share class of the fund is to be launched shortly.
