UK/EUROPE - HSBC Republic has opened its capital guaranteed fund of hedge funds to new investment.
The fund – open to investment by pension funds – will guarantee investors 100% of their capital with a combination of 100% of any investment growth.
HSBC Republic Investments chief executive Paul Dunning said: “The product provides investors with access to the returns of a diversified portfolio of hedge funds, spread across a wide range of hedge fund strategies.
“With the guarantee that their capital is secure, this product is likely to be of interest particularly to investors seeking first time exposure to hedge funds.”
Front-end charges to the fund are 3% with a minimum investment of US$10,000 (£6,420). Total annual management fees and guarantee charges are 3.5% and there is a performance fee of 10% on any performance above the three-month London inter-bank offered rate rate (Libor) plus 3%.
The fund will use HSBC Republic’s investment team which manages portfolios of hedge funds based in London, New York and Geneva.
The offer period for the tranches of capital guaranteed fund of hedge funds is October 25.
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