Emirates NBD has signed a strategic partnership with Man, an alternative investment management business based in the UK to relaunch a $20m Islamic hedge fund to attract Shariah-compliant investors.

Through the Emirates NBD Asset Management arm, the Emirates Islamic Alternative Strategies Fund will track the performance of Man’s GLG Multi-Strategy Fund. The fund will seek annual returns of 3 per cent to 5 per cent.

“The fund gives investors another choice. Whoever invests in this fund will have broad range of strategies to tap into. The market volatility seen plays into the hands of hedge funds and certain strategies will benefit from this type of environment,” says Patrick Merville, chief executive officer of Man Investments Middle East.

The original fund was set up in 2007.

“It might not be the right time to relaunch it, everybody is negative about investment markets and everybody wants to be in cash right now, so we can’t perfectly time it, but it is important to broaden the range of products in the market right now and it is important for us to talk with Shariah investors,” says Dean Vernooy, senior executive officer at Emirates NBD.