Aberdeen launches $500 million liquid alternative strategies fund

The Fund’s launch establishes Aberdeen as one of the world’s largest multi-manager liquid alternatives managers.

A statement from the wealth manager said that the new fund “offers investors access to high quality alternative investment talent in a more liquid and regulated vehicle”.

Designed by the Aberdeen hedge funds team to provide returns that are not dependent on the direction of traditional asset markets, the fund will aim to provide positive diversification and improved risk-adjusted returns in a multi-asset portfolio.

This style of investment is becoming more popular among investors concerned about the current levels of equity and fixed income markets and the potential for more correlation between asset classes in the future.

The Fund was seeded by Aberdeen PLC and has attracted significant early investment from existing Aberdeen clients.

The launch is part of Aberdeen’s wider strategy for the diversification and growth of its Solutions business and comes following the announced acquisitions of Arden Asset Management LLC and Flag Capital Management. Aberdeen’s alternatives platform will have total assets under management of over $30 billion following completion of both transactions.

A recent PWC report predicted alternative assets would nearly double to $15.3 trillion by 2020.

Aberdeen’s 18-strong team team has a 17-year track record of researching and investing in hedge fund and liquid alternative strategies for clients and is led by Russell Barlow who reports directly to Global Head of Alternatives Andrew McCaffery.

He said: Alternative investment strategies are becoming increasingly central to client portfolios and moving into the mainstream. This is why we have seen such strong demand for this fund. Many investors are constrained by complexity, liquidity, transparency and regulation. It is this kind of investor that will look to solutions like the Aberdeen Alternative Strategies Fund to help diversify their portfolios.”