Structured product boutiques Luxembourg Financial Group (LFG) and Ganymede Partners have banded together to launch a Ucits platform.

The Luxembourg Alternatives Ucits Platform (LAUP) is designed as a one-stop, independent, open-architecture platform for smaller hedge fund and fund of hedge fund (FoHF) managers to set up a Ucits III fund.

Ganymede founder Gareth James and LFG chief executive Johan Groothaert previously worked together at Deutsche Bank, where they launched one of the first managed account platforms.

They said Ucits III vehicles offered investors certainty in the wake of the financial crisis. Groothaert added that he expected hedge funds to outperform high yield and equities in the short to medium term, and a Ucits platform made it easier for the industry to attract new capital flows.

Under the plans LFG will open up its current platform which manages a range of Luxembourg-domiciled funds, to other groups wanting to launch a Ucits fund.

GAM adds to Ucits range
Meanwhile GAM has made an addition to its range of Ucits III funds, the GAM Star Pharo Emerging Market Debt & FX Fund.

The fund will invest the majority of its assets in emerging market government and quasi-government cash bonds and currency futures and forwards.

The fund aims to generate returns of between 5% and 10% a year above the JP Morgan EMBI Global Diversified Composite Index.

The Ucits III fund builds on Pharo's track record since its establishment in 2000. Chief investment officer Guillaume Fonkenell said he expected emerging markets to continue to outperform as an asset class.

GAM group head of institutional and fund distribution Craig Wallis said: "Our multi-manager research team recognised Pharo as an outstanding asset manager and in 2000 we invested in the firm's Pharo Master Fund at launch. We are delighted to offer our clients access to Pharo's emerging market investment expertise in a regulated vehicle."