Pure Capital, a New Zealand based quantitatively-driven investment manager, has launched the Pure Protection Fund. The quant-driven fund will invest in liquid, listed derivatives, primarily equity index and commodity derivative products, on recognised exchanges.

The fund is set to start trading July 1, 2009. Pure Capital has been running a similar strategy with as a managed account since 2007, generating cash returns of 79% in 2008 and 21% year to date in 2009.

The capacity for the new fund is $500 million.

The fund is being launched as a Channel Islands Stock Exchange-listed product and will be distributed by investment manager Argyll Investment Services, an established Guernsey based asset manager with over $200 million under management.

The investment adviser to the fund is Pure Capital, currently based in Wellington, New Zealand. The company is in the process opening an office in the UK.

"The only thing that is sure to rise in a bear market is correlation and this is a complex problem for investment managers, even those with well diversified portfolios," said Anthony Limbrick, chief investment officer of Pure Capital. "Our focus is on targeted non-correlated returns."

Domiciled in Guernsey and is administrated by Legis Fund Services, the fund uses the auditing services of KPMG.

Limbrick said minimum investment will be in the region of $100,000 to $250,000. The fund offers monthly redemptions with a high water mark and has may distribute profits on a quarterly basis.