The Close Man Guaranteed Hedge Fund II offer is set to close to IFAs and investors on Friday 29 October.
It is the second guaranteed multi-strategy hedge fund product from the Close Fund Management and Man Investments alliance. The first fund launched at the end of April and closed for investment on 18 June. The fund was the first fund of hedge funds on offer to the UK retail market from the Close Fund Management and Man Investments alliance. It surpassed expectations and raised over GBP 70 million under the Offer for Subscription, signalling growing UK retail investor and IFA appetite for hedge fund style products.
Investors and IFAs looking to invest, must ensure that their applications are received in Guernsey no later than 12:00 Noon on Friday 29 October 2004.
Close Fund Management is urging IFAs and investors to post applications first class, allowing at least two days for delivery.
The new fund of hedge funds is targeting annualised volatility of 7-9% and annualised absolute returns of 11- 13% over the medium term. In addition, investors are guaranteed the return of 100% of their initial investment at the maturity date in 8.5 years.
Marc Gordon, Managing Director of Close Fund Management, said: "Investors need to look beyond equities, bonds and property for true diversification. There is a widening recognition in the UK that exposure to alternative investments, such as hedge funds, can enhance traditional investment portfolios by exploiting the interplay of upward, downward and unstable market conditions. The beauty of this product is that the initial capital return is guaranteed, but it also has the potential to produce double digit returns."
Key facts of the new fund specifically designed for UK investors:
* Targeting annualised returns of 11%-13% over the medium term
* Minimum investments £10,000
* Offer to investors closes 29 October 2004
* Investment term of approximately 8.5 years
* Quarterly liquidity at Net Asset Value and the likelihood of daily market making
* Initial commission of up to 3% available, with 0.4% per annum trail commission.
Close Fund Management is the specialist fund management subsidiary of Close Brothers Group plc, now the UK's largest quoted merchant bank and among the 250 largest companies listed on the London Stock Exchange.
Close Fund Management was founded in late 1995 to provide specialist investment management services to the retail and institutional market, and is the market leader in protected and guaranteed funds. It is authorised and regulated by the Financial Services Authority.