Industry Updates

LGT Capital Partners to launch UCITS III fund accessing its managed futures strategy

Monday, April 26, 2010

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Opalesque Industry Updates - LGT Capital Partners, a leading alternative assets and fund of funds manager, is launching its Crown Managed Futures UCITS Fund to offer a broader range of investors access to its flagship managed futures strategy.

LGT CP has been investing in managed futures since 1996. Crown Managed Futures, its flagship managed futures fund, has assets under management of USD 670 million . It has delivered an annualised gross return of 10.5% since launch in October 2000, compared to -2.1% for the MSCI World Index , showing almost zero correlation to equities.

Regulatory approval has been obtained and CMFU is scheduled to launch on 4 May 2010. Similar to the flagship fund, it will provide exposure to hedge fund managers trading commodities, equities, fixed income and foreign exchange. Exposure will be achieved via a UCITS eligible index of currently 15 managed accounts, which provide full position transparency and high liquidity, a core requirement for many hedge fund investors.

Werner von Baum, Partner, LGT CP, said:

“Managed futures offer true diversification and we believe they are a valuable component of investors’ portfolios in all market environments. Allocating to this space can reduce volatility and market risk of a portfolio, helping to generate superior risk adjusted returns.“

“Crown Managed Futures is one of our flagship products and we are launching a UCITS fund in this sector following strong demand from private clients, intermediaries and institutional clients who can benefit from the enhanced liquidity, transparency and regulatory oversight that such a product provides. For an UCITS product, it is of key importance that the underlying assets are well matched to the liquidity being offered to investors; managed futures is one of the most liquid hedge fund strategies available and is, therefore, an ideal fit.” Corporate website: Source

- FG

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