HSBC Republic to launch Euro class for leveraged fund

HSBC Republic Investment Limited is opening the HSBC Leveraged GH Fund – Euro on 31 May 2005.

Jamie Murray, Head of Marketing, HSBC Republic Investments Limited, sa

HSBC Republic Investment Limited is opening the HSBC Leveraged GH Fund – Euro on 31 May 2005.

Jamie Murray, Head of Marketing, HSBC Republic Investments Limited, said:
“The HSBC Leveraged GH Fund – Euro has been launched to enable experienced investors to invest in a portfolio of hedge funds, whilst leveraging returns and mitigating currency risk through its Euro hedge.  The launch of this new leveraged class 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.”

HSBC Leveraged GH Fund – Euro aims to provide experienced, Euro-based investors, who can tolerate an increased volatility, the opportunity to achieve leveraged returns whilst mitigating the effects of currency fluctuations through leveraged investment in the Euro Hedged Class of the HSBC GH Fund.
 
The Fund will complement the existing HSBC Leveraged GH Fund, launched on 30 November 2004, and adds a new component to the HSBC GH Fund.  The minimum investment in the HSBC Leveraged GH Fund – Euro is EUR 25,000.
 
The investment objective of the HSBC GH Fund, the flagship fund of the HSBC fund of hedge funds range, is to provide a total return from a selection of hedge funds by utilising and trading a range of alternative strategies and markets worldwide.

This includes long/short equity on a regional, global or sectoral basis, global macro, arbitrage and event driven strategies.  As at 22 April 2005, HSBC GH Fund had total assets of US$650 million.  The HSBC GH Fund also offers multiple currency classes, including US Dollar, Swiss Franc, Euro and Sterling.

The management fee for HSBC Leveraged GH Fund – Euro is 1.75 % per annum and performance fee is 10 % of any return exceeding the benchmark (200 % of Euro 3 month LIBOR) paid annually.  There is also a 0.25% administration fee per annum, of the Fund’s gross assets.