Macquarie plans to launch a new CTA fund of funds in August. The portfolio will be managed by George Toubia, the head of fund of hedge funds activity at the Macquarie Group.
The new fund hopes to start with assets of $20-$25 million and will be investing in six underlying funds. The intention is that by investing across a spectrum of funds, there will be a measure of downside protection if trends that one fund has followed unexpectedly switch direction.
There is a 1.5% management fee and no performance fee. Liquidity is twice monthly and there is a 1% redemption fee which is retained for the benefit of the other investors in the fund.
The fund is aimed at non retail investors, such as high-net-worth individuals and family offices. Macquarie is applying to have the fund approved as a 'restricted recognised scheme' by the Monetary Authority of Singapore for distribution to 'accredited investors'. The fund is not subject to SFC authorisation in Hong Kong.
Service providers are HSBC as custodian, administrator and trustee, and Ernst & Young as auditor.