26 July 2010Martin Currie to launch UCITS III fund range*Martin Currie plans to make three strategies from its award-winning hedge-fund range available through UCITS III
Martin Currie, the specialist active equity manager, today announced its intention to launch three UCITS III-compliant absolute-alpha funds. These launches are subject to regulatory approval, with the funds expected to be available to retail and institutional investors from October 2010.
The three strategies to be launched are
Japan Absolute Alpha, European Absolute Alpha and
Global Resources Absolute Alpha. All three are based on existing hedge funds and will be managed by the same teams. These will be Luxembourg-domiciled Sicav funds with sterling, euro and dollar share classes. The minimum investment for each fund will be $10,000.
With more than a decade's experience of running hedge funds, Martin Currie is well placed to launch a UCITS-compliant range of long/short equity funds. The company's award-winning hedge-fund range manages US$1.3 billion (as at 1 July 2010*) and includes seven single-strategy equity long/short funds. These cover Japan, Europe, global resources, Greater China, global energy, global financials and global TMT. The firm also manages a diversified equity long/short fund - Omnium - which invests in its entire hedge-fund range. All of Martin Currie's hedge funds are signatories to the Hedge Fund Standard Board's standards. Currently, only four managers in the IMA absolute-return sector have signed up to these standards.
Japan Absolute Alpha will be managed by
John-Paul Temperley and
Keith Donaldson. Both manage the Martin Currie ARF - Japan Fund, the company's first long/short fund, which launched on 30 June 2000. Since inception, the fund has delivered a positive total return of 87.7%, compared with the Topix's loss of -39.8%. The fund has achieved these returns while maintaining an attractive risk profile, with a beta of just 0.24 and annualised volatility of only 7.9% (compared with the market's 18.1%). The fund has also protected capital during downturns, with a maximum drawdown of just 12.4%. Clients who invested in the market over the same period would have suffered a maximum drawdown of 49.0%.
European Absolute Alpha will be managed by
Michael Browne and
Steve Frost. Both joined Martin Currie in July, following the acquisition of the Sofaer Capital European long/short equity business. Michael and Steve have worked together on European equities for over 20 years and have co-managed what is now the Martin Currie European Hedge Fund since 1 January 2001. The fund has delivered a return of 92.7%, compared with the MSCI Europe index's -29.6%. The fund has achieved these returns while maintaining an attractive risk profile, with a beta of just 0.11 and annualised volatility of only 7.6% (compared with the market's 17.2%). The fund has also protected capital during market downturns, with a maximum drawdown of 11.4%. Investors in the European market would have experienced a maximum drawdown of 52.5% over the same period.
Global Resources Absolute Alpha will be managed by
Chris Butler and
Duncan Goodwin. Chris has been at Martin Currie for 21 years and has managed the Martin Currie ARF - Global Resources Fund since launch in October 2003. Duncan joined Martin Currie in 2005 and became co-manager of the fund in the same year. The fund has delivered a return of 76.1%, compared with a resources index which is up 109.2%. The fund has achieved these returns while maintaining an attractive risk profile, with a beta of just 0.30 and annualised volatility of just 10.6% (against the market's 22.1%). The fund has protected capital during downturns, with a maximum drawdown of only 17.9%. Over the same period, investors in the resources universe would have suffered a maximum drawdown of 54.3%.
Andy Sowerby, managing director of sales, marketing and client service at Martin Currie, said:'We have been managing absolute-return strategies for a diverse global client base for over 10 years and have invested heavily in the talent required to meet and exceed our clients' performance goals. In the aftermath of the financial crisis, however, the regulatory map is being redrawn. We expect the demand for UCITS long/short equity to grow and grow. For this reason, and in response to client demand, we are now introducing three of our top funds to our Luxembourg range'.
'We believe that we bring something different to the market. We are one of the very few groups that have more than a decade of experience, are signatories to the HFSB standards and have a proven record in generating absolute returns with low volatility and low absolute risk. As an example, had you invested in our Japan strategy at launch, you would have enjoyed a near 100% return - against a market loss of 30%.
'Subject to regulatory approval we will launch at the end of September, with each strategy offering US dollar, euro and sterling share classes.'
*Subject to regulatory approvalAdditional Information:
Award-Winning Hedge-Fund Range2010 - Hedge Funds Review Performance Awards - winner, best emerging-markets fund - Martin Currie China Hedge Fund
2010 - Hedge Funds European Performance Awards - winner, best investor relations team
2010 - UK Pensions Awards - winner, manager of the year, and shortlisted for alternative investment manager of the year
2009 - Alternative Investment News Hedge Fund awards - finalist, institutional manager of the year
2009 - Hedge Funds Reviews Annual European Performance awards - winner, best energy and natural resources hedge fund - Martin Currie ARF - Global Resources
2009 - HFMWeek European Performance Awards - winner, best emerging-markets fund - Martin Currie China Hedge Fund
2008 - HFMWeek European Performance Awards - winner, single manager - Martin Currie ARF - Global Resources fund
For further information please contact:Amy Fisher Director of Corporate Communications
Martin Currie
Tel: 0131 479 4780 / 07825 971421
AFisher@martincurrie.com
