CMA Global Hedge completes conversion of shares to sterling
CMA Global Hedge, the Guernsey-domiciled, London-listed fund of hedge funds, has announced that it can now offer significant access to its investment strategies in euros, US dollars and sterling following the conversion of approximately GBP59m worth of shares into sterling.
Nearly 3.2m US dollar and 5.5m euro-denominated shares were converted to the sterling share class on a net basis, while a further 22,700 shares were converted from US dollars to the euro class. The transaction brings the market capitalisation of CMA Global Hedge sterling shares to GBP63.7m, out of a total market capitalisation of GBP234m at the end of July.
According to the fund's manager CMA, the conversion gives UK investors better access to the London-listed vehicle, which has delivered a net asset value performance of 17.3 per cent since its listing in July 2006 and a share price increase of 14.5 per cent. The firm says this makes CMA Global Hedge one of the top-performing funds of hedge funds listed on the London Stock Exchange.
'We are delighted by investors' response to CMA Global Hedge's conversion offers,' says CMA chief executive Sabby Mionis. 'The company has reached another important milestone in its development, with significantly deeper liquidity for sterling investors for the first time.
'This demonstrates the increasing sophistication of UK investors as they become more confident in investing in uncorrelated asset classes during the current difficult market conditions. In addition, they recognise that as a listed hedge fund product, CMA Global Hedge offers all the benefits of daily liquidity and access to a carefully selected group of hedge fund strategies.
'Throughout the company's first year, we have both continued to take advantage of favourable market conditions, and also protected investors from the more extreme conditions seen in the months of February and July.'
CMA Global Hedge is a Guernsey closed-ended protected cell company established to invest in a portfolio of hedge funds managed by CMA. It aims to deliver superior risk-adjusted returns by investing in a diversified portfolio of individual hedge funds selected by the manager.
The company aims to apply two times leverage to invest in an actively managed portfolio of hedge funds across a diversified and broad but uncorrelated range of strategies. The company targets a long-term net return of 7 per cent above the Libor rate for each class of shares in the relevant currency once the fund is fully invested and leverage is employed.
CMA is a member of the Capital Management Advisors group of companies, established in 1997 to manage financial assets for high net worth individuals, family groups and institutions, and specialises in the selection of both traditional and alternative investment managers.
CMA, which manages approximately USD2.7 billion in institutional and private client assets, last year became a subsidiary of EFG International, a Zurich-based global private banking group offering private banking and asset management services.
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