Collins Stewart Fund Management (CSFM) has launched the Collins Stewart Alternative Strategies Fund.

Targeting a return of around 6%-10% a year, the fund has daily dealing with no lock up periods or redemption penalties. Hedge Funds Review first reported the Ucits compliant fund of Ucits III funds in August.

All of the single funds in the portfolio are domiciled in Dublin from within the existing fund platform.

The fund is targeting volatility of around 4%. Using a bottom-up fund picking strategy, the fund expects to have 12-15 underlying funds in the portfolio, offering a diversified range of managers.

The institutional annual management fee is 0.75% with a 10% performance fee with a hurdle rate (3%). The minimum investment in the fund is £5,000.

The fund of hedge funds (FoHF) will be managed by the same CSFM team that runs the company’s other FoHF product.

CSFM believes the decision to offer a totally Ucits-compliant structure will appeal to investors looking for better liquidity and transparency since the fund will offer daily liquidity.

Some of the reasons CSFM gave for launching the fund included the ability to offer daily liquidity, expertise in selecting and building a balanced portfolio of underlying funds and its ability to perform due diligence on the funds in the portfolio.

 “We expect the prospect of being able to access funds with hedge fund-like objectives in a regulated fund with daily dealing as being hugely attractive to intermediaries and their clients,” commented. Mike Brown, head of sales at CSFM.

Richard Hodgetts, manager of the Collins Stewart Alternative Strategies Fund and portfolio manager for the new fund said there are numerous hedge funds launching replica funds to conform to Ucits III regulation.

“This is making it increasingly difficult for investors and their advisors to choose the most suitable funds. Understanding the sophisticated tool kit used by these replica hedge funds is of paramount importance to successful fund selection.

CFSM is a multi-investment boutique and manages over £302 million (June 30. 2009) across the equity, fixed interest, multi-asset and fund of hedge fund asset classes.