Robeco Alternative Investments is looking to issue more capital-protected hedge fund-linked investment products. The group, which has offered a range of structured credit products to investors in the past, had its first capital-protected credit hedge fund earlier this year (DW, 4/29). The issue was so successful the group has decided to offer more capital-protected hedge fund products, said Edwin Noomen, head of structured products in Rotterdam.
Noomen said due to capacity constraints on the hedge fund's strategy, Robeco cannot simply issue another tranche of capital-protected notes linked to the original fund. But it is planning to offer a protected version of its fund of funds this autumn, which it will structure itself using constant proportion portfolio insurance.
Robeco is unlikely to reference any hedge fund indices in its investment products, said Noomen, because it believes investors prefer actively managed fund of funds. But, he noted the firm may look to proxy hedge products through index derivatives.
