Lyxor offers funds of hedge funds in Ucits III wrapper

Lyxor Asset Management, a subsidiary of Société Générale, has launched two new Ucits III funds, the Lyxor Hedge Fund Index and Active Edge funds, which are designed to provide exposure to the hedge fund industry using managed accounts.

A managed account is an entity controlled by the dealer that is intended to replicate the exact investment strategy of the underlying hedge fund. A hedge fund manager is appointed to the account and decides which instruments should be bought, but the issuing bank would then go and buy the instruments, which is cleared through its own prime brokerage. The fund ultimately sits in the name of the bank.

The hedge fund index passively tracks 15 hedge fund strategies across 108 of Lyxor's managed