abrdn launches Eclipse, an industry-first passive alternatives platform tracking HFRI 500

07/12/2022 Market Commentary

abrdn launches Eclipse, an industry-first passive alternatives platform offering tracking of HFRI 500 and related HFR investable index products; Additional indexes to offer tailored exposure to eight sub-strategies
July 11, 2022-PHILADELPHIA & NEW  YORK – Today, leading global asset manager abrdn announces the launch of the abrdn Eclipse fund platform, an industry-first offering for institutional investors that provides passive exposure to hedge fund strategies underpinned by indices from market-leading hedge fund index provider HFR.
abrdn Eclipse breaks new ground with the launch of the first hedge fund index tracking platform. Domiciled in the Cayman Islands, Eclipse offers abrdn’s global clients access to the flagship investable hedge fund benchmark HFRI 500, as well as eight sub-strategy indices including Long/Short Equity, Equity Market Neutral, Merger Arbitrage,  Event Driven Multi-Strategy, Discretionary Macro, Systematic Macro, Fixed Income Relative Value, and Volatility Relative Value strategies. 
The launch, which comes after several years of collaboration with HFR, is the latest innovation from the abrdn Alternatives team, comprised of more than 40 investment professionals dedicated to alternatives research, index and structuring, risk, execution, portfolio construction and operational due diligence. The team oversees approximately $14 billion of assets* on behalf of clients globally and across a range of active and passive solutions.
“In an unsettled market environment, investors are looking for unique, differentiated sources of returns leading them towards alternatives — and hedge funds, in particular, were making a strong case for an increased allocation even before the current market dislocation took hold,” says Darren Wolf, Global Head of Investments, Alternatives at abrdn. “Working with our partners at HFR and drawing upon abrdn’s expertise in delivering investment solutions, we have arrived at a first-of-its-kind proposition that is highly accessible, flexible in its delivery to clients and built to last. We are delighted to officially launch this platform and continue to help it grow as investors are reminded of the value proposition that this exposure can provide alongside a portfolio of traditional assets.”
“The HFRI 500 family of indexes provides investable benchmarks that are diversified, representative, ESMA Registered, IOSCO compliant, audited annually, with quarterly liquidity, with due diligence conducted on all constituents,” says Joseph Nicholas, Founder at HFR.  “abrdn’s launch of tracking products for HFR’s benchmarks provides allocators with new options and solutions, including a way to address unfunded exposure risk, reduce active selection risk and a passive, cost effective, low risk avenue to achieving market performance. ”
*as of December 31, 2021
Background to partnership
The partnership means that abrdn will be the first asset manager to offer a range of products that track the HFR investable indices.
HFR investable indices are unlike other theoretical hedge fund indices.  HFR screens each constituent for eligibility based on specific criteria to ensure each constituent in the index can be physically owned by a tracking product. Constituent funds must be open to new investments and the index methodology must consider the dealing terms of funds in its rebalancing, avoiding the biases found in other hedge fund indexes. The physical replication of investable indices minimizes the chances of tracking error, making it a more reliable approach than factor replication.  HFR’s Index methodology is IOSCO compliant and in-line with current best practice.
Marketing Statement
In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., Aberdeen Asset Managers Ltd., abrdn Australia Limited, abrdn Asia Limited, Aberdeen Capital Management, LLC, abrdn ETFs Advisors LLC and Aberdeen Standard Alternative Funds Limited.
About abrdn
At abrdn, we enable our clients to plan, save and invest for their futures.
We structure our business into three areas – and together they reflect our focus on enabling our clients to be better investors:
·         Investments: We work with clients to create solutions across asset classes, regions and markets globally – combining multi-layered research and market insights with technology and diverse thinking.
·         Adviser: We offer market-leading platform technology and tools that enable UK wealth managers and financial advisers to create more opportunity for their business and their clients.
·         Personal: We help people throughout the UK plan for their financial futures – through our financial planning business and our digital investing services.
Across our investments, adviser and personal businesses we manage and administer £542 billion of assets for our clients, and abrdn plc has over 1 million shareholders. (Figures as at 31 December 2021) Our investments are built on an insight strength that comes from multi-layered research and a large global footprint. Our teams collaborate across multiple capabilities, to create forward-thinking solutions that aim to meet our clients’ needs and deliver more sustainable outcomes. Our investments business manages £464 billion on behalf of individuals, governments, pension funds, insurers, companies, charities and foundations (as at 31 December 2021) – with support and expertise from 800 investment specialists in over 30 locations.
abrdn is the single global brand for all areas of our business. In July 2021 our plc listing became abrdn plc. In September our investments business, formerly Aberdeen Standard Investments, became abrdn.
About HFR®
HFR is the global leader in the alternative investment industry, specializing in the indexation and analysis of hedge funds. Established in 1992, HFR calculates over 200 indices of hedge fund performance ranging from industry-aggregate levels down to specific, niche areas of sub-strategy and regional investment focus.  HFR Database, a comprehensive resource available for hedge fund investors, includes fund-level detail on historical performance and assets, as well as firm characteristics on both the broadest and most influential hedge fund managers. HFR has developed a detailed fund classification system, enabling granular and specific queries for relative performance measurement, peer group analysis and benchmarking. The HFR suite of analysis products leverages HFR Database to provide detailed, current, comprehensive and relevant aggregate reference points on all facets of the hedge fund industry. HFR also offers consulting services for clients seeking customized top-level or more sophisticated analysis. For the hedge fund industry’s leading investors and hedge fund managers, HFR is The Institutional Standard.