Offshore fund analyst and fund of fund manager Forsyth Partners has launched two 10-year capital pr...
Offshore fund analyst and fund of fund manager Forsyth Partners has launched two 10-year capital protected products linked to a basket of hedge funds.
These are the first two of a series of guaranteed notes the company plans to offer over the coming year.
The Profit Protector Note has a 130% allocation to alternative strategies. The investor gets 50% of the performance of the underlying funds. Any upside is locked in every six months.
The Income Generator Note is almost identical except that it only has 100% allocation. In exchange for this, the investor gets a minimum return of 2% a year for the first five years of the contract.
Both products guarantee a minimum return of 100% of invested capital at the end of the ten-year period.
The underlying investments are also the same: a collection of hedge funds that are in effect a mirror of the Forsyth Alternative Income Fund, which has total assets of more than $200m and has delivered a total return of 13.9% in its first 12 months
All guarantees in the Forsyth Alternative Strategies Series I Notes are backed by KBC Bank and issued by KBC Financial Products International, a capital guarantee specialist.
The underlying hedge fund portfolio will have a mix of highly diversified fixed income hedge fund strategies and managers. The portfolio will try make absolute returns using a mix of investment strategies including convertible arbitrage, fixed income arbitrage, multi strategy arbitrage, relative value and global macro.
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