Sophisticated investors seek alternatives to global funds of hedge funds
HSBC Republic Investments Limited (HRIL) is experiencing increased demand from sophisticated investors for the HSBC Uni-Folio (Uni-Folio) range.
It comprises a broad range of funds of hedge funds targeting specific strategies or geographic regions.
The ten sub-funds within the Uni-Folio range allow investors to create their own diversified hedge fund portfolio through selection of these highly focused funds of hedge funds. Each fund typically invests in 7-15 underlying funds, depending on the volatility of the strategy or region.
The total assets under management for the HSBC Uni-Folio range are USD 356m (as at 30 June 2006). HSBC Trading AdvantEdge Fund has seen strong inflows, in particular from investors seeking to access the strong performance of the commodity sector. Assets have grown to USD 78.34m (as at 30 June 2006) since launch on 31 October 2005. In June 2006 HRIL also launched two new share classes, Euro and Sterling, to increase the investor appeal of the fund.
"The idea behind this range is to complement our range of globally diversified funds of hedge funds,' says Jamie Murray, global head of marketing. 'The HSBC Uni-Folio range offers more experienced investors the opportunity to invest in specific regions and hedge fund strategies, with the benefit of diversification and underlying hedge funds that we believe are amongst the best in their group. The funds in the range offer investors the opportunity to tilt their exposure to hedge fund strategies to areas, which they believe will outperform, or which will complement other parts of their portfolio.
"More exotic regions, such as emerging markets or Commodity Trading Advisers (CTAs), are extremely popular with investors; however, it is very hard for an individual to research hedge funds in these regions,' he adds. 'Some of the markets and strategies available offer potentially strong returns but can be very volatile. A fund of hedge funds therefore provides a way to access them whilst benefiting from diversification."
The HSBC Uni-Folio range offers monthly dealing, regular transparent reporting and a relatively low investment level of USD 25,000. Investors can invest in a range of currencies, including US Dollar, Euro and Yen.
HRIL is part of HSBC Private Bank, one of the largest investors in hedge funds globally. HSBC Private Bank is able to access many closed funds and negotiate better investment terms than those available to private investors.
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