Gartmore Investment Management is considering whether to offer capital protection on its fund of funds, Perseus. The fund will launch Dec 1, according to Aisling O'Reilly, head of derivatives at Gartmore in London. O'Reilly said the fund manager is investigating forms of capital protection, but declined further comment.
Diversified fund of funds have a low volatility, often around 2-3%, and some fund-linked officials argue there is no value in an investor paying a premium for capital protection. Marketers of fund of funds products, however, say capital protection gives the investor more security and may entice first-time hedge fund investors.
