Australia’s first liquidity enhanced fund launched
Chris Larsen
Retail asset management business DWS Investments has launched an enhanced product designed to give exposure to an actively managed, multi-strategy fund of hedge funds.
DWS Investments’ Australian head Chris Larsen said the new Strategic Value Fund (enhanced liquidity) aims to provide investors with liquidity on a daily basis.
The fund invests in certificates issued by Deutsche Bank AG and is designed to provide synthetic exposure to these hedge fund strategies.
“In 1999, DWS Investments was the first asset manager in Australia to launch a fund of hedge funds specifically designed to address the needs of retail investors and now we’re the first to offer a fund that invests in certificates that provides enhanced liquidity for actively managed hedge fund strategies,” Larsen said.
“Fund of hedge funds are generally a defensive asset as they aim for low correlation with growth assets in times of market stress. These risk/return characteristics mean the DWS Strategic Value Funds can provide diversification benefits to an investor’s total portfolio.”
Deutsche Bank’s global retail asset management business DWS Investments offers a suite of three fund of hedge funds in Australia that manage over $9 billion in the hedge fund space globally.
In June 2007, investment bank Credit Suisse launched a similar fund called the Tremont Index Strategies Fund.
The fund provided access to more than 180 hedge funds through a passive investment strategy using the Credit Suisse Tremont Hedge Fund Index as its benchmark, with daily liquidity incorporated into the product.
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