Trowbridge Selects Welton for New Fund Tailored for Illiquid High Net Worth Investors

Trowbridge Management today announced the availability of its new Trowbridge Global Fund, a managed futures fund specifically tailored to the illiquid high net worth investor.

“The Global Fund was influenced by two factors,” said Stan Dickson, President of Trowbridge Management.

“First, the fund’s returns needed to be diversified from equities, private equity and real estate. High net worth investors already have significant exposures in these areas.” To achieve this, theTrowbridge Global Fund invests exclusively in Welton’s Global Directional Portfolio (GDP) program, a directional managed futures program well known for its top-tier performance and composite-likereturn characteristics. “I selected Welton’s GDP program for a lot of reasons. It is rigorously managed to have a low correlation to equities and equity-based hedge funds, and has the stability of amulti-manager pool. It meets the fund’s investment objectives perfectly,” said Dickson.

Secondly, the Global Fund was designed specifically with the illiquid high net worth investor in mind. The most notable feature is a tax efficient funding structure that is well suited to those highnet worth investors with illiquid assets or other assets that carry burdensome tax consequences if divested. In either case, Trowbridge can offer referrals to banks capable of issuing letters ofcredit against assets like real estate, investment portfolios, and company balance sheets, among others. Trowbridge will then accept these letters of credit for fund access into the Global Fundprogram.

“Investors have the potential to utilize their otherwise illiquid assets to generate incremental, tax efficient yields. This is a powerful concept, and investors and wealth managers I’ve spoken withreadily appreciate this funding structure,” said Dickson. “Illiquid investors want to increase the rate of return on their asset base, and this method is low cost, easy, and could yield significantreturns.”

“I think this structure is also raising investors’ general appreciation for managed futures because this type of funding structure would be impossible using traditional equities or almost all othercompeting hedge fund styles,” said Dickson.