UK - Crédit Agricole Alternative Investment Products Group (CA-AIPG), the alternative investment subsidiary of Crédit Agricole Asset Management, has registered the fund of hedge funds Green Way Arbitrage for distribution in the Netherlands. The move follows approval by the Dutch regulatory authority, Autoriteit Financiële Markten.
Green Way Arbitrage is a Luxembourg-registered fund of hedge funds specialising in arbitrage strategies. It invests across selected low volatility strategies, such as fixed income arbitrage, equity/risk arbitrage, index arbitrage and market neutral equities, and is aimed at investors looking to make lower volatility investment into alternatives in order to diversify their portfolios. CA-AIPG has more than 10 years’ experience and around e3bn under management in funds of hedge funds, and has offices in London, Chicago, Paris, and Tokyo.
The product will be commercialised through Crédit Agricole Asset Management’s Benelux office. Stéphane Detobel, head of the Benelux office, said: “With a volatility of 2.4% and an annualised performance of 9.64% since 1999, this fund, one of the very few fund of hedge funds registered for sale in the Netherlands, provides an excellent opportunity for investors.”
Domiciled in Luxembourg and structured as a SICAV, the fund has monthly or quarterly liquidity and is denominated in euros, US dollars or Japanese yen. The custodian for the fund is Crédit Agricole Indosuez Luxembourg. Minimum subscription is 200,000 euros/dollars/yen, depending on share class. The annual management fee for share classes A, C and E is 1%, with an annual administrative fee of 0.25% and a performance fee of 10% of net new profits.
Walter Clark, head of CA-AIPG, said: “Risk and uncertainty in financial markets around the world continues to abound. It remains hard to argue that fundamental economic conditions are improving. The US, European and Japanese economies appear to be weakening rather than strengthening; valuations of stocks are still stretched rather than relaxed, when compared with some historical ‘fair value’ measures; and restructuring the enormous levels of corporate debt accumulated in the late 90s is only beginning rather than ending. The current focus on Iraq complicates the picture further.
“Consequently, we believe the potential for significant swings in financial asset prices remains high. The capitulation of long-term thinking by many market participants witnessed throughout 2002 has resulted in the creation of some exceptionally attractive arbitrage opportunities. We believe many hedge funds are well positioned to take advantage of these opportunities, all the while maintaining important downside protection for investors.”
Last year, Crédit Agricole announced it would sell its US alternative asset subsidiary LibertyView Capital Management to Neuberger Berman in order to focus on the European securities market.
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