Rothschild Australia Asset Management (RAAM) has announced plans to release an Australian based hedge fund on to the wholesale market.
Rothschild Australia Asset Management (RAAM) has announced plans to release an Australian based hedge fund on to the wholesale market.
The hedge fund will be known as the Rothschild Total Return Fund, and has been developed over the past 18 months.
Alternative investments associate director Richard Keary says the offering document will be available in December in the form of an information memorandum, not a prospectus.
He says the hedge fund is an excluded offer fund targeted at high net worth individuals and institutional investors with a minimum of $500,000 to invest.
Distribution of the fund will be focused on the wholesale and high net worth market, plus some intermediary distribution where “focus will be with dealer groups who have discerning and sophisticated clients,” Keary says.
Keary says the fund could also form part of master trusts, depending on whether the master trust operators can use the information memorandum option.
He says Rothschild’s product development research over the past couple of years found an increase in interest within Australia for hedge funds, as groups identify the need to invest in mix assets not correlated with stocks and bonds.
Keary says hedge funds are an “add on” to traditional investments and as investors become more educated, they will see a “whole universe of alternative investment options.”
