HSBC has enhanced its fund of hedge funds product range available in Switzerland, with the approval for distribution of the HSBC AdvantEdge range.
The fund range, which provides investors with the option to build focused exposure to specific hedge fund strategies or geographic regions, includes:
HSBC Asian AdvantEdge Fund
HSBC Emerging AdvantEdge Fund
HSBC European AdvantEdge Fund ˆ Euro Class / US Dollar Class
HSBC Japan AdvantEdge Fund ˆ US Dollar Class / Yen Class
HSBC Macro AdvantEdge Fund
HSBC Technology AdvantEdge Fund
HSBC US AdvantEdge Fund
The addition of this range to the existing fund of hedge funds products available in Switzerland positions HSBC as one of the first asset management houses in the country capable of offering a complete portfolio of products addressing the investment requirements of institutional and private investors.
Investors in Switzerland can diversify a traditional investment portfolio focused on one or several regional stock markets with an appropriate AdvantEdge fund that can help to reduce volatility within a portfolio and, therefore, boost risk adjusted returns. Equally, products in the range can be used as stand-alone vehicles.
Designed for the educated investor, each of the seven AdvantEdge portfolios is dedicated to a specific investment arena and has between six and fifteen underlying investment managers selected for their different but complementary styles.
Barbara Rupf, head of alternative business development, HSBC Private Bank (Suisse) SA , said: "The HSBC AdvantEdge fund range enables investors in Switzerland to use these funds of hedge funds as building blocks to create their own investment portfolio targeted to different hedge fund strategies, providing diversification across targeted investment strategies whilst avoiding the high investment minima of single manager hedge funds."
Minimum investment in the AdvantEdge funds of hedge funds is USD 25,000, which allows access to a sector where it is not unusual to find individual hedge funds with an investment minimum of USD 1 million. There is also the additional benefit of investing in a variety of currencies: US Dollar, Euro and Yen.
Paul Dunning, chief executive, HSBC Republic Investments Limited, says: "The AdvantEdge fund of hedge funds range is attractive to investors seeking to benefit from a relatively concentrated portfolio allocation that is dedicated to investment in a specific sector or region. The range offers excellent flexibility, good liquidity versus the general hedge fund sector and, because of HSBC‚s experience and participation in the hedge fund sector, allows potential access to funds that are otherwise closed."
Background notes: The HSBC AdvantEdge range of funds are sub-funds of HSBC Uni-Folio. HSBC Uni-Folio is a foreign umbrella fund with special risk under Swiss law. HSBC Uni-Folio is an open-ended unit trust umbrella fund, established in Guernsey. Funds within Uni-Folio invest as "funds of funds" in hedge funds.
Each fund has between 6 and 15 underlying investment managers who are selected for their different but complementary styles. The AdvantEdge range provides a platform that is simple to use, either as stand-alone vehicles or as building blocks within a targeted portfolio of hedge funds. Over time, it is expected that further funds will be added to this range.