Matrix has responded to requests from IFAs for an enhanced fund structure for funds of hedge funds with the new Matrix Horizon Closed End Fund.
The fund enables IFAs to invest clients' money in a structure which:
- gives them access to the returns of the Open Ended Matrix Horizon Fund;
- treats all gains as subject to Capital Gains rather than Income Tax;
- enables daily dealing through a market maker.
The Offer Period opens on 1 March and closes on 24 March. Subscriptions will be accepted for a minimum of GBP 50,000. After the close of the offer period new subscriptions, priced at net asset value, will be able to be made on a monthly basis.
Clients wishing to sell their shares may do so in one of two ways:
Daily Market Making - Collins Stewart, Channel Islands, will make a secondary market so that clients will be able to deal on a daily basis, although this market may not be very liquid.
Matched Bargain Service - clients may send in a redemption request to the Administrator who will attempt to match these requests against subscriptions on a monthly basis at net asset value. Shareholders who find it difficult to redeem their shares in this way may request the Directors to repurchase their Shares.
This fund is a new sub fund of 'Matrix Structured Products Limited', a Bermuda based closed ended segregated accounts company. The fund will invest its assets 100% in the shares of the Matrix Horizon Fund (open ended fund). The shares of the new fund will be listed on the Channel Islands Stock Exchange, will be tradable daily and settled through CREST. Shareholders will own shares, which should be subject to Capital Gains Tax rather than Income Tax. Matrix Bermuda Limited will bear most of the costs of running this new fund with the Horizon Closed End Fund only bearing its administration, CREST and stock exchange charges. There is no double charging of investment management fees.
'We listened to the requests from some of our IFAs who deal regularly in our open ended funds of hedge funds,' says Bridget Guerin, a director of Matrix Structured Products. 'They told us that they had clients who had Capital losses that they would like to have invested in our funds of hedge funds but were dissuaded by the Income Tax regime which applied to the open ended funds of funds.
'We also heard that many stockbrokers could not invest in monthly dealing funds because their clients mandates did not categorise these funds as 'readily realisable' assets. We have launched the Matrix Horizon Closed End Fund to address both of these issues. We are very optimistic that this structure will prove a very popular way to invest in our funds of hedge funds and we are planning to role it out to the other open ended funds of hedge funds in our product range in the near future.'
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