Bank of Bermuda has launched an offshore hedge fund incubator aimed at Australian resident managers....
Bank of Bermuda has launched an offshore hedge fund incubator aimed at Australian resident managers.
The Kangaroo Fund gives fund managers the opportunity to participate in the international arena and secure funding from investors located outside Australia.
Domiciled in the Cayman Islands, it offers a range of services including fund set-up, custody, trust, administration and legal advice under one umbrella.
Deacons will provide legal support, Pricewaterhouse-Coopers will provide accounting services, Goldman Sachs will provide prime brokerage and the Bank of Bermuda will provide fund administration and custody.
In Australia, it can be expensive setting up an offshore fund. The annual administrative running costs of a hedge fund can eat into performance if the fund manager fails to raise substantial investment. Bank of Bermuda has underwritten these costs to keep annual fees within an acceptable ratio-to-net assets.
Joanne Murphy, head of hedge funds for the Bank of Bermuda in the Asia Pacific, says: 'This fund is aimed at resident Australian fund managers with offshore investment clients who find it difficult to raise money internationally. It reflects the strong demand in this area and the rapid development of the sector in Australia. Interest from the fund managers there has been very encouraging.
'It has also stimulated interest elsewhere in the region and it is our intention to launch similar products in the rest of Asia.'
The investment strategy of the sub funds is long/short equity.
There is no requirement for a minimum of funds under management and the Kangaroo Fund offers the same opportunity to both new and established fund managers.
Currency is either in US$ or AUD and dealing and valuations are monthly.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till