Through the Vol Edge Fund, a French FCP managed by Harewood Asset Management, France’s BNP Paribas now offers UK discretionary managers a counter-volatility solution, which has already been successful in France for some years.

The fund was first launched in France in 2007, where, among other investors, it attracted interest from wealth managers. It was made available to UK professional investors in February this year.

By obtaining UK reporting status, gains on disposals of holdings in the fund in the hands of UK taxpaying investors should be treated as capital gains and subject to capital gains tax rather than being taxed as income as an offshore income gain, the firm said in a statement.

“For some institutional investors not subject to UK tax on returns from offshore funds the impact of this change has little effect,” said Sisouphan Tran, head of Harewood Solutions & Privalto UK, BNP Paribas.

“However, for those holders that are subject to UK tax this should improve the post tax return and make the fund more attractive.”

“The fund’s strategy has been very well received across Europe and the UK, with particular interest shown by multi-managers, wealth managers and other professional investors as they seek out flexible means of providing their clients with ‘smoother’ returns that are less disrupted by market volatility,” Sisouphan added.