WEST PALM BEACH, FL (HEDGECO.NET) – UBS Financial Services said that it would launch a new �fund of funds� vehicle, according to a regulatory filing. The asset manager said the new product wouldinvest mostly in hedge funds. UBS is targeting wealthy investors with the launch of this product, the company hopes to raise US$750 million for the new portfolio.
The new UBS-Strat Fund will be available to investors in October 2004, when the new fund begins trading. Minimum investment requirement has been established at US$250,000 according to the company, and aspiring investors would have to meet an initial net worth of US$1.5 million including the spouse. This requirement conforms to the SEC stipulated qualification requirements for hedge fund investors.
According to the filing papers, the fund is a closed-end fund, and will seek capital appreciation over a long time horizon. The new fund of funds vehicle will be allocating investment assets among groups of hedge funds, which have performed well in the past.
Being a closed-end fund, investors in the fund will not be able to redeem shares on a daily bases, and investment interests in the fund may not be transferable, only in very rare circumstances. Such requirements do make the fund mostly suitable for investors with a longer time horizon.
UBS recently said that its hedge fund management assets have more than doubled according to the report. Additionally, the growth in the firm�s hedge fund management business is predicted to continue over the coming years. UBS hedge fund managed assets now stand at a strong E16.7 billion. The asset management branch of the firm was formed in early 2003. Growth in the firm�s asset management business continues to see a rapid acceleration, as wealth investors and institutions continue to seek out alternative investment vehicles that provide absolute return regardless of market direction.
UBS has its own multi-manager fund of fund operations, and rapid growth in the firm�s hedge fund operations has helped UBS to become one of the largest hedge fund managers. According to news reports, UBS recently won 10 billion Franks new institutional asset management obligations during the first quarter of 2004.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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