HONG KONG (HEDGECO.NET) – Man Investments is set to launch its new Hong Kong retail hedge fund. The new fund, Man Hedge Diversified, has been authorized for sale by the Hong Kong investmentregulator, the SFC. According to the release, the new fund is a multi-strategy fund of hedge funds; its managers hope to provide its investors with an annualized investment return in the range of15-17%.
The fund will initially allocate one third of the portfolio to managed futures, 25% to equity hedge, 23% arbitrage, 12% equity long/short and 7% to directional strategies, according to a spokesman for the fund. A minimum investment requirement of US$20,000 is required from potential investors.
The Asia Pacific regional manager for Man Investments, Matt Dillon said, “Unlike most fund of hedge funds which target very low levels of volatility, this product is aiming to achieve attractive returns at single digit volatility.” According to him, the new fund was constructed to suit characteristics of Hong Kong hedge fund investors, while adhering to the stipulated SFC regulatory guidelines.
The Hong Kong Securities and Exchange Commission approved the marketing of Hedge funds to the retail investment community about two years ago, after a very long period of considerations and consultations on the issue. The process began in 1998, when Anthony Leung, the financial secretary indicated that Hong Kong is working to open the country to hedge fund operators, claiming that Hong Kong markets offer a lot of liquidity. During the Asian financial crisis, Hong Kong and other Asian countries blamed the speculative activities of hedge funds for the troubles of their currencies.
Single hedge fund managers as well those of funds of hedge funds must have a minimum of five years of experience before they can market their hedge fund portfolios in Hong Kong, according to the SFC requirements. Additionally, the regulator also mandates that companies aspiring to sell hedge fund products in Hong Kong must have a minimum of US$100 million worth of assets under management before operating in the country.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com.
