Fri, May 27, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

RWC Partners to launch cash +6% fund for Allwright and Frost in February

Monday, January 17, 2011
Opalesque Industry Update - RWC Partners today announced that the launch of Peter Allwright and Stuart Frost's UCITS III RWC Enhanced ARC (Absolute Rate and Currency) Fund has been bought forward to February 2011. Initially planned to launch at the end of the first quarter, client demand has driven the early launch of the fund. Allwright and Frost joined RWC Partners in October 2010 from Threadneedle where they were the joint portfolio managers of the Threadneedle Target Return Fund, Absolute Return Bond Fund and the hedge fund, Macro Crescendo Trading Fund.

RWC Enhanced ARC will be managed to target cash +6% on an annualised basis. The managers have historically managed both unconstrained macro funds and more conservative funds targeting cash +3%. In order to target cash +6% in the new fund, the managers anticipate using approximately twice the risk budget used in the more cautious funds.

In October 2010, Allwright and Frost assumed responsibility for the UCITS III RWC Cautious ARC fund which has a target return of 3% over cash rate on an annualised basis.

Allwright and Frost’s approach involves core allocations to short duration, high-grade fixed income securities, supplemented by alpha strategies that take advantage of investment opportunities in the fixed income and currency markets. As well as the investing in the currency markets, these alpha strategies are able to take long and short positions in the bond markets. This allows the overall strategy to make positive returns through the market cycle, including yield tightening environments.

The Enhanced ARC Fund will be a UCITS III fund with daily dealing, offering retail and institutional share classes in EUR, GBP and USD. The fees will be 1.5% for the retail share class and 0.8% for the institutional share class. Both share classes with carry a performance fee of 15% on returns over LIBOR or equivalent. RWC Partners will seek to have the fund locally registered across Europe including Italy, Germany, Luxembourg, the United Kingdom and Switzerland.

Commenting on the fund launch, Dan Mannix, Head of Business Development at RWC Partners, said:

“Given the yield environment we have had a number of requests from our investors to accelerate the launch timetable for Peter and Stuart’s new fund. Investors are both seeking higher returns from their fixed income portfolios and are fearful that we are entering the start of a rate-rising environment. Peter and Stuart’s approach allows returns to be made from the fixed income and currency markets in a yield tightening environment.

“The new fund sits next to the fund they already manage that targets a return of cash +3%. In order to achieve the new fund’s target of cash +6%, Peter and Stuart will be taking more risk through scaling up their position sizes. However, the strategy remains the same in that it is a macro driven absolute return fund investing in the fixed income and currency markets. It is highly liquid and uses the same successful process the managers have used for many years.

“As with all our funds it is a priority that investors understand the risks associated with absolute return funds. It is unlikely that the returns for these funds will be achieved in a straight line. The approach has a very strong focus on capital preservation and therefore in down periods the managers will act quickly to preserve investors’ capital. Their historical track-record demonstrates that this approach has been extremely effective in the very challenging environments we have seen over the last few years. “With yields as low as they are, investors are looking for opportunities to take a little more risk to generate returns, particularly in the bond space. A short duration bond fund with an active overlay in the currency and bond markets gives investors exposure uncorrelated with traditional long-only bond funds and other absolute return strategies.” Corporate website: rwcpartners.com

- FG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  4. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  5. Emerging markets hedge funds perform strongly, but capital base erodes[more]

    Komfie Manalo, Opalesque Asia: Latin American Emerging Markets and Russian hedge funds lead industry gains in the first months of 2016, posting strong performances through April as global and EM equity, commodity and currency markets surged in recent weeks following steep losses to begin the year