HSBC Republic estimates it will have raised £125m for its closed-end fund of hedge funds when i...
HSBC Republic estimates it will have raised £125m for its closed-end fund of hedge funds when it begins trading on 28 November.
The fund has two measures to control its discount and premium. Up to 25% of the shares in issue are capable of being redeemed at NAV every six months, and there is the potential use of a share buyback authority to repurchase shares at a narrow discount to NAV.
The product, as first reported in Investment Week, will be a closed-ended Guernsey incorporated company listed on the London Stock Exchange, and is available for sterling or dollar investments. It aims to provide lower volatility than equities while still producing an attractive return for investors.
The underlying portfolio, made up of some 20 to 30 products, will predominantly consist of holdings in hedge funds and managed accounts that utilise and trade a range of strategies and markets worldwide.
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