FUND MANAGEMENT NEWS
COMMERZBANK LAUNCHES CHINA FUND
Commerzbank has unveiled a new Chinese equity fund, designed explicitly to reduce volatility without minimising returns. Commerzbank has partnered with China Asset Management Co to launch the Volatility Target fund, which will benefit from active management by experts on the ground in China. Structured as a Ucits Sicav, the fund has a target volatility level of 20 per cent. The benchmark is MSCI China and the annual fee for institutional investors is 1 per cent.
HIGH NET WORTHS REGAIN RISK APPETITE
Private banking clients are investing more in small and medium enterprises (SMEs), according to research from Hotbed. Forty-four per cent of private banks expect to increase funding to private equity over the next year, reflecting an increased tolerance for risk.
As the possibility of a double-dip recession recedes, the low cost of equity in small businesses makes them relatively more attractive. Other alternative assets such as hedge funds and commercial property are also in demand.
OVERLAY AND BNP UNVEIL CURRENCY INDEX
Overlay Asset Management and BNP Paribas have launched a new index designed to hedge currency risk and to provide a benchmark for currency exposure. The index tracks the performance of the 15 largest currencies, with allocations weighted by GDP adjusted for purchasing power parity. Emerging market currencies make up 40 per cent of the index, allowing investors to hedge against strong growth. Previously, many investors have neglected the currency markets as a hedge.