First guaranteed fund by Asset Alliance

The eight funds, three from Europe and five in North America, represent a diversified range of managers working in the long/short equity; merger/convertible bond arbitrage; currency and equity-linked arbitrage styles.

Michael Azlen, managing director of Asset Alliance, said the fund of funds has already raised E190m ($171m) and that they hoped to raise E300m Euros this year. The product is being sold to European institutions, including banks, insurance companies and pension funds. Azlen confirmed that one major European bank will "white label" the fund and distribute it through their own network.

In terms of fees, Azlen explained that because of Asset Alliance's relationships with its affiliates, the fees at fund of funds level are just 0.5% rather than the usual fees of at least 1% management and 10% performance.