Dexion Absolute will set up a local fund to give Australian retail investors access to its UK-listed exchange-traded fund of hedge funds.
The UK-based manager of listed hedge funds provides access to the fund of hedge funds manager, Harris Alternatives.
Dexion Absolute already secured $72 million from the local wholesale market when it offered its product to institutional investors in October 2006.
“The retail offering is a natural extension for our product, particularly given the size of Australia’s retail market,” director Andrew Gale said.
Gale said the new offering will have no restrictions on minimum investment amounts and will give investors liquidity and daily pricing that are requirements for platform listed products.
The manager has a discount protection strategy in place to protect investors should the shares trade at a five per cent discount to the Net Asset Value of the fund over a 12-month period.
“This way our investors are always protected from the fund trading at a discount,” Gale said.
Gale has met with local platform providers and dealer groups and expects the new fund to be launched in the next few months.
