Convergence between traditional asset managers and hedge fund managers is still an emerging trend although it has accelerated following the crisis, according to a new study called Breaking Down the Walls conducted jointly by Bank of New York Mellon and Greenwich Associates. It found that 52 per cent of hedge funds and 46 per cent of traditional managers report taking some steps towards convergence. But only a very small number of investors currently use hedge fund managers for non-hedge strategies, or traditional managers for hedge fund-like strategies.
USS HAS $135M INTEREST IN NB
The Universities Superannuation Scheme (USS) has acquired a $135m interest in Neuberger Berman’s Opportunities Fund II, making it the largest investor in the $1.77bn fund. The Secondary Opportunities Fund II has closed more than $4bn in secondary transactions since 1991 and is run principally by Brian Talbot, managing director and global head of secondary private equity at Neuberger Berman. USS is the second largest private-sector pension fund in the UK and the main pension scheme for UK universities. It had more than £28bn in assets at the end of 2009.
AXA LAUNCHES NEW HIGH YIELD FUND
Following FSA approval, Axa Investment Managers will launch its US Short Duration High Yield Fund into the UK market on 30 April. The new open-ended investment company (OEIC) gives investors onshore access to the strategy from the existing Luxembourg AXA IM FIIS US Short Duration High Yield Fund that was launched more than five years ago. It has a minimum initial investment of £1m and targets financial institutions and large intermediary investors. It will take 150-200 positions and focus on the better quality high yield bonds with improving fundamentals.