HSBC Republic is to launch a sterling hedged share class on its Global Absolute Limited fund of hedg...
HSBC Republic is to launch a sterling hedged share class on its Global Absolute Limited fund of hedge funds in August.
The portfolio holds 44 underlying funds covering a range of alternative strategies.
The group is aiming to raise some £25m before the offer closes on 22 August, although there is no maximum. Minimum investment is £5,000 and the annual management charge is 1.95%, plus 10% of any outperformance of the Sterling three-month Libor rate plus 2%. The fee is capped annually at 4% of net assets. IFA commission is negotiable on both the annual management charge and 3% initial fee.
Jamie Murray, head of marketing at HSBC Republic, said: 'The investments within HSBC Global Absolute, like most similar vehicles, are primarily in US dollars. Therefore, the introduction of the sterling share class will help reduce the effect of currency movements on investment returns.'
The fund is a Guernsey-based, London Stock Exchange listed, close-ended company. The sterling share class will offer investors daily liquidity, rather than a limited redemption period.
To ensure the share price of Global Absolute does not trade at a substantial discount to net asset value, up to 25% of the shares in issue can be redeemed every six months, at the manager's discretion.
HSBC Global Absolute was originally launched in November 2001 and raised £125m.
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