F&C adds volatility hedge vehicle to MM funds

F&C's multi-manager team has introduced a fund which offers a hedge against eurozone equity volatility.

The team expects volatility will increase this year, even though it is currently at low levels. Managed by BNP Paribas subsidiary Harewood Asset Management, the Vol Edge fund is indexed to the forward implied volatility of the DJ Eurostoxx 50, measured via the VStoxx. F&C has built a 3% position in the £128m Multi-Manager Growth fund and introduced a 2% holding in the £277m Balanced portfolio, by trimming fixed income holdings. Although equity volatility has fallen over the last 12 months and has begun to plateau, F&C head of UK retail multi-manager Dean Cheeseman says he expects i...