tatham offers a hedge fof, property fof and structured product
Ex-Towry Law International managing director Bill Tatham is marketing three new funds from Bermuda-based Frontier Capital and Switzerland-based company Alpinvesta – a fund of hedge funds, a fund of commercial property funds and a structured product.
Tatham, who is managing director of both companies, said Frontier will launch open-ended funds while Alpinvesta will offer closed-ended funds.
The hedge vehicle, an Isle of Man-based Experienced Investor Fund, is called the Frontier Fund and comprises just under 200 single hedge funds managed by New Star, Forsyth Partners and Paradigm.
Tatham, who is now operating from Dubai, said: "The problem for intermediaries is that there are so many hedge funds and funds of hedge funds from which to choose. We have put together a basket of single hedge funds through research and we will be monitoring their performance.
"We have gone for just under 200 hedge funds to provide diversification. The three companies are well known and manage around $1.6bn in combined assets in hedge funds. The companies complement each other as Paradigm is strong in the US, Forsyth Partners is more focused on Europe and New Star has greater emphasis on long/short funds."
There is no upfront charge but an annual fee of 1.9%. Frontier fund has an exit charge of 7% which declines to 0% over 70 months.
Frontier Commercial Property, also an Isle of Man- domiciled fund, has three underlying asset managers – UBS, Schroders and New Star. Unusually, Tatham has chosen their onshore products for inclusion.
"These are UK onshore funds that are not available in the offshore market," he said. "The advantage of using such large funds is that they have the assets to diversify across the UK property market.
"For example, the UBS fund has £1bn in assets and recently bought a shopping centre for £52m. That is not possible with a small fund."
The third fund has been launched by Alpinvesta. It is a guaranteed fund with a 10-year term, 100% capital guarantee and a lock in of at least 80% of the highest net asset value. The European medium-term note is guaranteed by BNP Paribas. It is linked to hedge fund indices created by Dow Jones and HFR.
"Tilney Opal uses the CSFB index but we felt two indices provided diversification," he said. "The Alpinvesta 180 Protected Loan note has a 12% allocation to Winton Capital Management, which is a managed futures fund. This is to try to provide an 'extra return' for the fund."
Tatham stressed that the Alpinvesta 180 Protected Loan will never have to go fully into cash however the underlying investments perform.
He said: "The way it has been structured and the dynamic form of the guarantee mean it will always have at least 10% of its assets invested."
Has spent four years at SLA
Our weekly heads-up for advisers
Factor in volatility
Potential IHT liability