Colonial First State Issues First Hedge Fund Of Funds

by Carla Johnson, Investors Offshore.com

30 October 2001

Australian-based Colonial First State has developed a 'Global Diversified Strategies Fund' which is the investment company's first hedge fund of funds. The company says this new approach will provide its investors with access to a portfolio of quality hedge fund investments that aims to deliver positive returns over the medium term with levels of risk similar to fixed interest investments.

The Colonial First State Global Diversified Strategies Fund invests in a portfolio of quality hedge fund investments and expects to invest in around 25 managers diversified across four broad hedge fund strategies and geographically spread around the world.

Hedge fund popularity in Australia and Asia has been lagging somewhat behind the rest of the world but interest in this type of fund is increasing and this is particularly since global equity markets have been showing some dismal returns recently. This has led several pension funds in Australia to begin investing in hedge funds and already a few retail fund of funds have surfaced around the country.

Investors in the new fund can invest a minimum of A$1,000 and can expect to obtain returns of around 12 per cent to 14 per cent over the medium term.

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