Pioneer
Investments to Offer Multi-Strategy Hedge Funds
New fund of hedge funds by Pioneer Investments
Pioneer Investments is about to join the retail hedge fund market of
Hong Kong, with the establishment of multi-manager and multi-strategy
fund of hedge funds, Edmund Lacis made the disclosure in a released statement.
Lacis is Pioneer’s Asia head of sales and distribution. The new
fund of hedge funds according to Lacis is to limit volatility, while minimizing
the number of draw down months. Such objective would help to ensure that
investors experience a constant return.
Lacis said, "With the current low interest rate environment and
with retail investors entering this asset class for the first time, we
feel that a hedge fund which offers about half the volatility of bonds
and consistent equity-like returns will be attractive to retail investors”.
About the new hedge fund
The new hedge fund may be attaching a guarantee to investors according
to Lacis, but details of such guarantee were not immediately provided.
Lacis hopes that assets in the new hedge fund would reach US$50-60 million
within one year of the fund’s launching. Lacis disclosed that about
$1 billion of guaranteed products would be maturing this year in Hong
Kong. Some of such assets should be available to retail hedge funds Lacis
hopes.
Lacis said Pioneer Investments would be partnering with some unnamed commercial
banks for communication and distribution of the new fund of hedge fund
products, he added, "We've had discussion with commercial banks,
which have not developed their own retail hedge fund capability, as well
as with those which have their own funds but are operating an open platform.”
Hedge Fund market in Hong Kong
Retail hedge funds were legalized in Hong Kong in May 2002, and hedge
funds operating in Hong Kong would still need to be approved by the Hong
Kong regulatory authority. Pioneer Investments has submitted its application
for the establishment of its retail hedge funds to the SFC, according
to Lacis.
Paul Oranika
Editor-in Chief
Hedgeco.net
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