EUROPE - The recently launched Morley Absolute Growth Investment Company has had its first closing after raising more funding than expected from institutional investors.
The split capital closed ended investment vehicle, which includes a hedge fund element, has received commitments worth £226m (e, mainly by UK institutions.

“ I am delighted with the sum received for this new and innovative product, particularly given the difficult market background. It underlines the level of interest in hedge funds by institutional investors and positions Morley as a significant player in this new and exciting market,” says David Keen, head of investment trusts at Morley Fund Management.

The shares of the company, sponsored by UBS Warburg, were listed last week on the Dublin and Guernsey stock exchanges. Its portfolio will be divided into two parts; £122m (55%) will go into the pan-European hedge fund, Morley Alternative Strategy Fund, which concentrates on the FTSE350 and FTSE World Europe ex UK indices. The rest will go into an income portfolio, consisting mainly of investment trust geared ordinary shares.

The performance related fee, 20% of excess returns, is paid once a total return of 10% a year has been achieved. The overall management fee will be around 1.55% a year.
Morley Fund Management, part of the CGNU Group, has £106m of assets under management.