Barclays and Hedge Fund Research establish managed accounts partnership

Barclays Capital plans to introduce a range of structured products based on managed accounts and indexes offered by Hedge Fund Research Group following a deal between the two organisations.

The agreement paves the way for Barclays to create a range of structured products and funds based on Hedge Fund Research’s managed accounts and hedge fund indexes.

The relationship with Hedge Fund Research is a response to client demand for greater transparency, liquidity and customisation among hedge fund investors, said Art Mbanefo, head of equities and funds structured markets at Barclays Capital.

“By combining our structuring expertise and client relationships with Hedge Fund Research’s robust infrastructure and industry benchmarks, we are able to offer a broad range of managed account solutions,” he said.

BarCap considered building an internal managed account platform before deciding to work with a third-party provider. Hedge Fund Research impressed with its infrastructure, transparency and long history of providing access to hedge funds through managed accounts, according to Mbanefo.

Hedge Fund Research Asset Management, established in 1993, offers access to over 1,000 hedge fund strategies through its managed accounts platform. Assets under management are believed to be around $3 billion.

The company is part of the Hedge Fund Research Group. This includes the Hedge Fund Research database and index business. Hedge Fund Research tracks over 6,000 funds and produces more than 100 indexes which are used as benchmarks in the industry.

BarCap plans to leverage the relationship with the asset management company to create a range of exchange traded notes (ETNs) and swaps that provide delta-one exposure to the returns of hedge funds. Ucits funds and unit trusts based on Hedge Fund Research’s managed accounts and hedge fund indexes are also in the pipeline.

BarCap will also have “some exclusivity” over the use of Hedge Fund Research’s infrastructure and data to create products for investors, Mbanefo said.

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