Initially, the notes will be invested 90 per cent in Culross Global and ten per cent in Culross Arbitrage. These proportions may be varied through the life of the investment and equally there are facilities for temporary holdings of cash and/or for the application of some leverage.

Culross Global is designed to generate conservative absolute returns with bond like risk. It is invested in 25-30 funds across ten global investment themes.

Launched in 1999, Culross Global aims to achieve returns of approximately 12 per cent net per year over the medium term. The sterling-denominated class of the portfolio returned 44.7 per cent in 2007 and 5.16 per cent in 2008.

Culross Arbitrage, launched in April 2001, is currently invested in 12-15 funds across five arbitrage strategies. Designed for low risk, the sterling class gained 16.44 per cent in 2007 and fell 3.41 per cent in 2008.

The notes, targeted at UK professional investors and Ucits funds of funds, are expected to be taxed under UK capital gains tax rather than income tax and are eligible for individual savings accounts, self-invested personal pensions, small self-administered schemes and offshore bonds. The minimum investment is GBP50,000 and the final maturity date is March 2016.

The notes will be listed on the London Stock Exchange. Nomura International has agreed to provide daily liquidity by making a secondary market in these securities, subject to overall market conditions.

'Culross Global Management has long had the ambition to offer low-risk absolute return investments to the UK market,' says the firm's founder and principal Nigel Blanshard. 'Our partnership with Nomura for the launch of this product will, we hope, generate significant interest among professional investors even in these difficult times.'