HSBC Republic has launched its first capital guaranteed fund of hedge funds. HSBC Alternative Weal...
HSBC Republic has launched its first capital guaranteed fund of hedge funds.
HSBC Alternative Wealth Protector is a multi-featured investment vehicle which offers a combination of capital guarantee at maturity and exposure to a selection of hedge funds.
Minimum investment into the fund is $10,000, with a front-end charge of 3%.
The management fee is 1.7% pa plus 1.75% pa to cover the cost of the capital guarantee.
The fund also allows for a performance fee of 10% on any outperformance of the dollar three-month Libor plus 3% on a high watermark basis, accrued monthly and paid annually by the fund.
HSBC Republic Investments will monitor the product and act as the investment adviser on the selection of hedge funds.
The offer period for the first tranche of this product closes in late September 2002.
It will have a five-year fixed term which matures in August 2007.
The investment is linked to the returns of the HSBC Republic Wealth Protection Fund.
The product will provide 100% capital guarantee, a combination of 100% of the upside with the ability to gear up to a further 50%, and a profit lock-in feature.
The lock-in feature means that on an annual basis from launch, for each 15% incremental increase in the invested capital, the product will lock in a profit of 5% of invested capital up to a maximum potential lock-in of 25% of invested capital.
The fund will draw on the experience of HSBC Republic's investment team managing portfolios of hedge funds based in London, New York and Geneva.
HSBC Republic has $9bn of clients' assets invested in hedge funds and more than 12 years' experience in the sector.
HSBC Republic Investments is part of HSBC Republic, the HSBC Group's private banking brand.
UK Multi Cap Income sees success
Guidance on dealing with misconduct
Adviser tech review
Latest news and analysis