Following the initial launch of the HSBC Ucits AdvantEdge Fund in October 2009, the fund has now successfully completed the passporting process for France and Germany.
Ucits funds operate under a passport system, which means that they can be offered for sale throughout the entire European Union once they have been authorised in one member state.
The fund currently offers six share classes for general distribution. Four share classes were launched in October 2009: Euro, US Dollar, Euro Institutional, and US Dollar Institutional. The Sterling and Sterling Institutional share classes were launched in January 2010.
All these share classes comply with the UK reporting tax regime for offshore funds, allowing UK investors to be taxed at capital gains rather than income tax rates on disposal of their interests.
As of 9 June 2010, the fund has raised USD170m.
The fund is designed to enable investors to participate in the absolute return opportunities offered by current market conditions via a more liquid and regulated vehicle than a traditional fund of hedge funds. The fund offers weekly liquidity, and complies with Ucits III rules concerning leverage, counterparty risk and types of investments.
The fund’s investment manager is HSBC Alternative Investments.
Chris Allen, chief executive of HSBC Alternative Investments, says: “As the universe of Ucits III compliant hedge funds continue to grow, we are excited about the opportunities presented to our managers. Manager selection also becomes ever more important in delivering returns to investors. With over 20 years’ hedge fund experience, a global research platform that has avoided all major blow ups and a robust due diligence process, we look forward to our continued involvement in the ‘Newcits’ market.”
