In a period when derivatives are receiving heightened scrutiny from regulators and distributors, Société Générale affiliate Lyxor is preparing to launch a retail product in Hong Kong that can invest long and short across more than 50 global futures markets.

The fund’s authorisation shows the willingness of Hong Kong’s Securities and Futures Commission to approve alternative investment strategies with a strong emphasis on risk management and diversification.

The new Lyxor Epsilon Managed Futures Fund cleared the SFC on February 22. China Construction Bank Asia and Convoy Asset Management have already agreed to add the product to their platforms, while conversations with other distributors are ongoing, says Lyxor’s Derek Ng, head of distribution for Hong Kong for structured funds and alternative investments.