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New Hedge Fund Offers Several Performance Floors

Old Mutual is starting a protected hedge fund that guarantees investors a minimum return. The Old Mutual Prosper 80 fund will give investors a return of at least 4% over the Bank of England base rate, according to Furthermore, the hedge fund will never return less than 80% of the highest account value.

The fund will be an open-ended vehicle with daily pricing that also locks in the highest value. Investors may take out more than the 80% value when available but can always use that value as a fall-back.

With a target volatility of 5%, the fund will have relatively low downside risk. The minimum investment will be GBP5,000, with a 1% annual management fee.

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