Investors are expected to pour at least $1bn (€830m) into London-listed funds of hedge funds between now and the end of 2005.

Dexion Capital, the consultant, is to launch its third London-listed fund in November while banks, including NIB International, HSBC Republic and Mellon, are considering similar launches. London has $1.5bn of assets under management in 13 listed funds while Zurich has $2.6bn in seven and Toronto, the only other market to list them, has $140m in three, according to research by ABN Amro, which is advising Dexion on its listing.