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Exclusive | Abrdn Launches First Hedge-Fund Index Trackers

Reported by WSJ
Jul 11, 2022· 2 min read
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Key Takeaways
  • • Abrdn launches Eclipse, the first hedge-fund index tracking platform, enabling passive investment access to HFR's hedge-fund indexes through structured vehicles domiciled in the Cayman Islands.
  • • Eclipse platform offers customizable hedge fund exposure through passive benchmark allocation, breaking traditional barriers to retail and institutional access to hedge fund strategy indexes.
  • • HFR BlockchainIndices included in the platform track hedge funds investing in cryptocurrency and distributed ledger technologies, expanding index coverage across alternative asset strategies.
  • • The platform represents a significant shift in hedge fund accessibility, allowing investors to gain diversified exposure to hedge fund performance without traditional active management minimums and fees.
Summary
Abrdn has introduced Eclipse, a groundbreaking platform that provides investors with passive tracking access to hedge fund indexes managed by HFR (Hedge Fund Research). The platform, domiciled in the Cayman Islands, marks the first time hedge fund indexes have been made available through passive investment vehicles, democratizing access to strategies historically reserved for high-net-worth and institutional investors with substantial capital commitments.

Eclipse functions as a customizable hedge fund platform that allows investors to make discretionary allocations to hedge fund strategies via passive benchmark tracking rather than traditional active management. This structural innovation eliminates conventional barriers associated with hedge fund investing, including high minimum investments and performance-based fee structures. By leveraging HFR's established index methodologies, the platform provides transparent, rules-based exposure to multiple hedge fund strategy categories.

The platform's offering includes HFR BlockchainIndices, a specialized suite tracking hedge funds with concentrated exposure to cryptocurrency and distributed ledger technology investments. Additionally, Eclipse provides access to HFR Fund of Funds indices with synthetic design capabilities, enabling investors to construct diversified hedge fund portfolios aligned with specific risk and return objectives. This breadth of index options allows institutional and retail investors to build tailored hedge fund allocations without direct fund selection responsibilities.

The launch represents a significant structural development in alternative asset accessibility. By converting active hedge fund indices into passive tracking vehicles, Abrdn and HFR have created a framework that reduces operational complexity for investors while maintaining exposure to hedge fund strategy diversification. The Cayman Islands domiciliation provides established regulatory clarity for international institutional investors and family offices seeking efficient hedge fund index participation.

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Sources

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WSJ Exclusive | Abrdn Launches First Hedge-Fund Index Trackers