xfdws HEDGE-FUNDS-EDUCATION sked<\/p>\n
Emerging Markets DatafileOctober 28, 2003<\/p>\n
THE STANDARD<\/p>\n
HONG KONG<\/p>\n
ENGLISH<\/p>\n
Hedge funds education urged, THE STANDARD<\/p>\n
Mukul Munish<\/p>\n
ASIA<\/p>\n
WorldSources, Inc. 322 MASSACHUSETTS AVENUE 2ND FLOOR, NE WASHINGTON, DC 20002<\/p>\n
COPYRIGHT 2003 BY WORLDSOURCES, INC., A JOINT VENTURE OF FDCH e-Media, INC. AND WORLD TIMES, INC. NO PORTION OF THE MATERIALS CONTAINED HEREIN MAY BE USED IN ANY MEDIA WITHOUT ATTRIBUTION TO WORLDSOURCES, INC.<\/p>\n
Fund houses should educate distributors such as banks and financial advisers to popularise hedge funds, which have seen lukewarm sales since their launch in Hong Kong a year ago, an investment company said.<\/p>\n
Man Investments’ Asia-Pacific regional manager, Matt Dillon, said fund houses should provide detailed information to explain how hedge funds work. “We held a number of seminars to educate the distributors about our products. We recently did a three-hour workshop with Standard Chartered staff,” said Dillon, who oversees futures fund AHL Diversified Futures.<\/p>\n
Small investors in Hong Kong and in other regional markets have shunned hedge funds since they were allowed by the Securities and Futures Commission to be marketed locally in the third quarter of last year.<\/p>\n
“The SFC has set a high standard for funds, basically to protect investors interests. That’s why investors have less funds to choose from,” Dillon said in welcoming the high standards set by the regulatory body. “We meet the high standards and we feel the time is right to launch a second hedge fund in March-April next year.”<\/p>\n
Under the SFC guidelines, fund houses were allowed to offer three types of hedge funds to retail investors – hedge funds with a capital guarantee feature, which had no minimum limit on investment; fund of hedge funds, which require a minimum investment of US$10,000 (HK$78,000); and single-strategy hedge funds, which have a minimum investment threshold of US$50,000.<\/p>\n
Dillon said another reason for the lacklustre response by investors could be that during a bull run in equity markets investors tend to shun alternative investment products. Regional markets have risen by more than 35 per cent since the start of the year.<\/p>\n
Seven funds have been authorised for sale in Hong Kong, which according to industry estimates, have raised retail money of about US$65 million.<\/p>\n
Compared with this paltry amount, mutual fund sales in Hong Kong in August alone were US$130 million.<\/p>\n
In Hong Kong, JPMorgan Fleming Asset Management has launched four hedge funds, while HSBC and Invesco have also launched hedge funds.<\/p>\n
Man Investments launched AHL Diversified Futures in April 1998 and so far it has total sales of US$400 million. The minimum investment required is US$30,000.<\/p>\n
The AHL Diversified Future’s fund size is US$230 million and its compounded annual rate of return is 15.1 per cent.<\/p>\n
Copyright 2003 THE STANDARD all rights reserved as distributed by WorldSources, Inc.<\/p>\n","protected":false},"excerpt":{"rendered":"
xfdws HEDGE-FUNDS-EDUCATION sked Emerging Markets DatafileOctober 28, 2003 THE STANDARD HONG KONG ENGLISH Hedge funds education urged, THE STANDARD Mukul Munish ASIA WorldSources, Inc. 322 MASSACHUSETTS AVENUE 2ND FLOOR, NE WASHINGTON, DC 20002 COPYRIGHT 2003 BY WORLDSOURCES, INC., A JOINT […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1511","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/1511","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=1511"}],"version-history":[{"count":0,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/1511\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=1511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=1511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=1511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}