Coutts Eyes Asia Optimistically with New Fund

September 03, 2003 at 08:00 PM
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LONDON (HedgeWorld.com)–The Coutts Group unveiled an Asian-focused hedge fund of funds, with the anticipation that investment conditions are favorable in the region.

Managers of the fund will combine complimentary managers of Asian equities, aiming for long-term capital appreciation with moderate volatility.

Coutts officials believe the timing is right to invest in Asia. "With Asian markets expected to outperform other major markets in the short-to-medium term, the region is also expected to benefit from the expected upturn in the U.S. economy," said Robert Dawkins, head of alternative investments, in a statement. "We are confident that investment conditions in Asia are now ripe for this type of strategy," Mr. Dawkins said.

Coutts, a private bank owned by the Royal Bank of Scotland, Edinburgh, will charge a 1.25% annual management fee and a 10% performance fee after a hurdle rate. The hurdle is 2% a year plus the U.S. three-month LIBOR rate. The minimum to invest is ?75,000 or the equivalent in U.S. dollars or euros.

Coutts manages more than US$4 billion in hedge funds.

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