BlueCrest Capital Management and Merrill Lynch are the latest to launch a Ucits version of a successful offshore fund.

BlueTrend Ucits Fund, launched in December 2008 by BlueCrest with Merrill Lynch acting as sponsor, is a Ucits compliant version of the BlueTrend CTA Fund. This fund has been run by BlueCrest since April 2004.

The BlueTrend CTA fund follows a systematic, diversified, trend following programme with $7 billion in assets under management. It achieved a performance of 43.35% in 2008.

The Ucits fund, part of Merrill Lynch's Ucits compliant Luxembourg SICAV, Merrill Lynch Investment Solutions (MLIS), uses the same trend following and systematic style of investment strategy. It applies scientific techniques to the analysis of markets. It identifies trends and builds up alpha by using a portfolio construction algorithm that allocates across securities and sectors. It invests only in liquid instruments and trades in 150 markets which include commodities, bonds, equity and foreign exchange.

The fund launched with €55 million in assets under management. It aims for a return of 15%-20% a year and an annualised volatility of 20% with a Sharpe Ratio of 1+.

The fund is offered to institutional and retail investors in the UK, Ireland, France, Germany, Italy and Spain Minimum subscription for the institutional share class is €5 million, £3 million or $7.5 million. Subscription and redemption is weekly on valuation day.

The custodian is Société Générale Bank and Trust and the fund administrator is EURO-VL Luxembourg.

The fund has a management fee is 2% and a performance fee of 20%. It is being offered in euro, dollar and sterling share classes.

Eric Personne, EMEA head of fund solutions group at Merrill Lynch, said the launch showed Ucits structures were playing a strong part in the convergence between the hedge fund industry and the traditional asset management industry.

"The Ucits regulations are being accepted by the hedge fund industry and companies like Brevan Howard and Marshall Wace are also launching Ucits compliant versions of their successful offshore strategies. With the Ucits wrapper, investors can invest in a regulated mutual fund offering an absolute return performance profile," he said.

BlueCrest reported assets under management of $11 billion in April 2009.