Aberdeen Standard Investments (ASI) has signed an exclusive licence agreement with Hedge Fund Research (HFR) to launch a series of products that will track a range of investable hedge fund indices.
As part of the agreement, ASI has incorporated a monthly priced strategy designed to track the HFRI 500, which is made up of 500 hedge funds. The investment strategy will then allow access to HFR's investable index family, with circa 30 underlying investable hedge fund strategies and sub-strategies giving investors the opportunity to choose those most suitable to their needs.
In time, ASI will also be offering tracking funds for thematic indices. The partnership will also provide a platform for HFR to create further custom indices on behalf of clients, which may offer investors access to vehicles that will track HFR indices.
The partnership follows the successful launch of ASI HFRI-I Liquid Alternatives strategy, whose assets under management have amounted to $650m since inception in February. This strategy tracks the performance of an index of around 180 Ucits hedge funds.
Russell Barlow, global head of alternative investment strategies at Aberdeen Standard Investments, says: "Traditional methods of creating hedge fund benchmarks have tended to fall short of the requirement to be investable or have resulted in sub-optimal tracking errors.
"We know from speaking to our clients that many of them see the benefits of accessing the returns available in the hedge fund space through a passive format so we expect there to be healthy demand for the strategies that this partnership will create."