Schroders seeks higher returns with new fund of hedge funds.

Schroders, the fund management firm, is set to launch its third fund of hedge funds in response to increasing investor demand for products with higher returns.The Blue Mountain fund will be the most aggressive of the range, and has a stated objective of achieving absolute annualised returns of 10-15% from a high-return/higher-risk portfolio of hedge funds.

Schroders' existing funds of hedge funds are the Blue Sea and Blue Star funds. Blue Sea aims to achieve absolute returns of 6-9% a year with low correlation to traditional equity benchmarks. Blue Star seeks returns in line with global equity indices, but with limited correlation to and lower risk than listed equity markets.

The Blue Mountain fund will be invested in a...

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