Thames River Capital has released further details of its new absolute return fund of funds, targeting a return of between five and ten per cent.

The fund has a five per cent volatility target and aims to outperform global bonds as measured by the Barclays Aggregate Bond index.

It is to invest in a portfolio of up to 40 absolute return funds with allocations of between one and five per cent of NAV, including equity long-short, global macro, convertibles, credit, event drive and emerging markets constituents.

Michael Warren, investment director of Thames River, said that markets have rallied aggressively since their 2009 March lows but many investors missed the rally and remain nervous about investing post the upturn in the market.

He added. ‘As investors seek a higher return on their money, we believe the Thames River Absolute Return Fund can offer investors a well diversified, low volatility fund investing in funds managed by a growing pool of blue-chip managers in the absolute return sector.’

The Irish domiciled fund, launched on 13 January 2010, has already raised £47 million and will be managed by Ken Kinsey-Quick and assisted by James Rous.

Minimum investment is £1,000 and the annual management charge is 1.5%.

Key features at a glance
Subscription frequency: weekly 
Redemption frequency: weekly (6 business days notice)
Annual Management Fee: 1.5%
Performance fee: 10% above LIBOR hurdle with high water mark
Target return: 5-10% pa