The Alternative Class of the All Points Fund of Funds has become a feeder fund to the HSBC GH Fund, the flagship fund of the HSBC fund of hedge funds stable.

The merger, which follows the acquisition of Bank of Bermuda by HSBC in 2004, has boosted the HSBC GH Fund's assets to over USD 500 million. Both funds had similar investment policies and the HSBC GH Fund will now maintain that investment approach, seeking to provide a total return from selective investment in a number of hedge funds by utilising and trading a range of different strategies and markets worldwide. The HSBC GH Fund also offers monthly liquidity with no redemption charge.

Paul Dunning, Chief Executive, HSBC Republic Investments Limited, said: "The merger follows a series of improvements introduced to make the HSBC GH Fund a more attractive and flexible investment vehicle. We have added currency classes in Euro, Sterling and Swiss Franc, which have shown steady growth since launch. With assets now over USD 500 million the HSBC GH Fund will have enhanced appeal for investors wishing to invest in a well established, globally diversified fund of hedge funds with a strong investment track record."

For existing investors, the main change in the portfolio of the HSBC GH Fund is the modestly increased exposure to strategies, such as arbitrage and relative value strategies, which typically show lower volatility than other hedge fund strategies.

As at the end of November 2004, the merged portfolio consisted of the following strategies:

* Equity long/short
* High yield/distressed
* Macro
* Managed futures
* Market neutral
* Multi-strategy/event driven.