Fin.Eco Investimenti SGR, an Italian asset manager with EUR10 billion (EUR8.8 billion) under management, is planning to launch a series of hedge funds and may also offer hedge fund-linked products that will use over-the-counter derivatives. The hedge funds will use both fixed income and equity related products, according to an official at the firm. It plans to launch the funds in the fourth quarter and expects to raise EUR200 million in investments.
The firm has applied to the Banca d'Italia for approval to launch the funds but is waiting for the completion of a merger between Banca di Roma and Fin.Eco's parent company Gruppo Bipop-Carire before going ahead with the plans. The merger is expected to be approved at the annual general meeting next month. The official said the outcome of this merger will decide the details of the hedge funds, such as which part of the institution runs the funds.
Fin.Eco is also considering offering capital guaranteed products linked to hedge funds. Gianmichele Braccia, a financial engineer in Milan, said it may use over-the-counter options to structure the hedge fund products. However, it could use a threshold method. He said it was in too early a stage to elaborate.