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The multi-strategy Peletier Absolute fund will be advised by Allianz Alternative Asset Management and managed by RCM, the specialist equity manager within Allianz Global Investors.

Allianz Alternative is led by Jean-Francois Vert and dedicated solely to managing FoHFs.

Simon White, head of investment trusts at RCM, said the firm hoped to raise £25m for the closed-end Peletier fund in July.

Peletier will have a matching investment objective and strategy to the existing Bahamas-listed £760m KGH Licorne fund, for which Allianz Alternative is also the investment adviser.

The fund’s aim will be to deliver absolute returns coupled with low volatility, typically investing in 40–50 hedge funds.

Mr White said: "Advisers are looking more than ever to increase exposure to funds that offer the prospect of long-term capital appreciation, low volatility and low correlation to equity and bond markets.

"A fund that can do this and which, crucially, is managed by a team with a demonstrable track record, deserves consideration in an increasingly popular sector."

According to Allianz Alternative, Licorne’s performance would have beaten all London-listed funds of hedge funds over the last five years, returning 11.4 per cent on an annualised basis, compared with a median 7.4 per cent.

Mr Vert, chief executive and founder of Allianz Alternative, said: "The current dislocation in world financial markets presents an excellent opportunity to invest new capital in some of the best hedge fund managers in their respective categories."

The placing is likely to open around 4 July and close on or after 15 July.