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Investable hedge fund indices launched into Swiss market

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Union Bancaire Privée (UBP), Hedge Fund Research Inc.

Union Bancaire Privée (UBP), Hedge Fund Research Inc. and Dresdner Bank are collaborating to launch a series of certificates linked to the HFRX range of investable hedge fund indices into the Swiss market.

The daily HFRX indices are freely accessible in Europe via the Hedgeweek website

UBP and Dresdner Bank will have joint distribution rights to the HFRX Index Certificates. The certificates are aimed at both private and institutional investors and it is intended they will be fully tradable from 19 July following their listing on the Swiss Exchange.

UBP, the leading Swiss private bank and a major supplier of alternative investment strategies, is Lead Manager of this initiative. Christophe Aletti, member of Management from UBP, said: “This is an exciting initiative for the Swiss market. The range of certificates available means investors can choose their tactical asset allocation requirement to achieve a customisable and flexible investment portfolio.”

Dresdner Bank AG will act as Issuer of these certificates with Dresdner Bank Switzerland taking the role of Co-Manager and investment bank Dresdner Kleinwort Wasserstein (DrKW) will act as a market maker for trading the certificates. Marc Denogent, Vice-President in DrKW’s Capital Markets business line, said: “This is the next logical step in bringing the universe of hedge funds closer to the investor, by providing transparency, daily liquidity and thus the ability to construct core-satellite strategies. We are delighted to be working together with UBP in this partnership approach.”

Hedge Fund Research Inc (HFR), which is regulated by the SEC, is a global leader in the provision of hedge fund data, research, indexation and asset management services. HFR first launched its family of investable hedge fund indices in 2003 and since then has entered into partnerships with a select number of Europe’s leading financial institutions, including in the UK and France, to develop products based on the HFRX Indices.

This latest agreement for HFR will offer investors in Switzerland the chance to invest locally for the first time in a comprehensive range of transparent and liquid benchmark instruments in the alternative hedge fund asset class category.

John Godden, Managing Director of HFR Europe, said: “We are delighted to be working with UBP and Dresdner. UBP are recognised as a leader in the field of hedge Fund allocation. Their participation in the investable Hedge Fund Index product area with the HFRX certificates is a significant milestone in the development of the sector. Our continued relationship with Dresdner provides us with excellent capital markets services.”

Certificates will be available on the following indices: HFRX Global Index; HFRX Convertible Arbitrage Index; HFRX Distressed Securities index; HFRX Equity Hedge Index; HFRX Equity Market Neutral Index; HFRX Event Driven Index; HFRX Macro Index; HFRX Merger Arbitrage Index; and HFRX Relative Value Arbitrage Index.

Each individual strategy Index uses asset-weighted optimisation to provide high level representivity. This provides a close, consistent proxy to the specified strategy.

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