Credit Suisse First Boston is rolling out a hedge fund index-tracking product aimed at the instituti...
Credit Suisse First Boston is rolling out a hedge fund index-tracking product aimed at the institutional market.
The vehicle, Hedgefund Index Participations fund, will aim to track the CSFB/Tremont Hedge Funds index and will be listed on the Irish Stock Exchange. The product has no exit charges and no performance-based fees and is aimed at the pension fund market and other institutional investors. The CSFB/Tremont Hedge Fund index is made up of 369 hedge funds, as of 31 December 2001, and is calculated on a monthly basis.
Roland Lorenzo, managing director at Credit Suisse First Boston, said: 'Pension funds and other institutions are beginning to consider the merits of alternative asset classes in the light of continuing volatility of equities and poor returns on cash. There is still, however, a resistance to investing in hedge funds as they are believed to be too risky. However, experience suggests they are much less volatile than equities while still offering equity-like returns with lower risk than traditional passive benchmarks.'
CSFB and Tremont also produce nine sub-indices that track the major types of investment styles and strategies used by hedge fund managers. The sub-indices include Convertible Arbitrage, Dedicated Short Bias, Emerging Markets and Equity Market Neutral.
'Necessary steps' taken
Penalty payments and enforcement policy
Fees as low as 0.04%
Only 9,486 applied for the benefit in 12 months
Women and young people adversely affected