Barclays is set to launch a hedge fund product for UK retail investors. The minimum investment of £7,000 ($12,200) has been designed to ...

Barclays is set to launch a hedge fund product for UK retail investors.

The minimum investment of £7,000 ($12,200) has been designed to appeal to ISA investors rather than high net worth individuals, private banks or institutional investors.

Barclays Market Wizards Protected Plan is pitched at the low-risk end of the market and will piggy-back on a hedge fund established four years ago by the London-based Fortune Group - the Market Wizards Fund. This is a fund-of-funds that allocates to about 30 individual hedge fund managers.

Barclays will take the product on a national promotional roadshow for independent financial advisors in the next few weeks to give an indication of retail investors' appetite for hedge funds.

The fund has achieved average annual returns of almost 8 per cent since launch with relatively little volatility. Barclays will charge a basic management fee of 1.5 per cent.