LGT Capital Partners, an $18 billion alternatives manager with $4.5 billion invested in hedge funds, believes it has found a solution to create the first UCITS III compliant managed futures fund of funds. Subject to regulatory approval, the Swiss-based group is set to launch Crown Managed Futures UCITS Fund, giving access to its $638 million Cayman-based managed futures strategy.
Werner von Baum
UCITS regulation is restrictive when it comes to the types of underling instruments that can be used. UCITS III funds can gain exposure to certain UCITS III compliant hedge fund indices via an over-the-counter collateralised total-return swap that will mimic the net asset values of the underlying managed accounts.