HSBC launches UCITS III compliant fund of hedge funds
Jennifer Lowe, 18 January 2010
HSBC has launched a Sterling Class of its HSBC UCITS AdvantEdge fund of hedge funds.
The Sterling classes of the HSBC UCITS AdvantEdge Fund will comply with the new ‘reporting’ tax regime for offshore funds, allowing UK investors to be taxed at capital gains rather than income tax rates on disposal of their interests.
This makes an investment in the fund attractive to UK investors, especially given that the top income tax rate for individuals goes up to 50 per cent from April 2010 (as compared to the CGT rate of 18 per cent).
The HSBC UCITS AdvantEdge Fund is a new generation fund of hedge funds, designed to enable both retail and institutional investors to participate in the absolute return opportunities offered by current market conditions via a more liquid and regulated vehicle than a traditional fund of hedge funds.
The Fund offers weekly liquidity, and complies with the strict UCITS III rules concerning leverage, counterparty risk and investments traded. The Fund’s investment manager is HSBC Alternative Investments Ltd, an established adviser of funds of hedge funds.
All underlying UCITS hedge funds under consideration go through its quantitative and qualitative investment due diligence process which has been proven over many years.
The fund combines a number of core strategies that are expected to benefit from opportunities created by the credit crunch, such as discretionary macro, equity market neutral, managed futures, and equity long/short.
Chris Allen, CEO of HSBC Alternative Investments Ltd, said, ‘The Sterling classes will allow UK investors to gain maximum benefit from the opportunities to participate in the hedge fund sector offered by the HSBC UCITS AdvantEdge fund. The hedge fund industry is leaner and fitter as we enter 2010 and as weaker performers continue to withdraw we believe the remaining providers will reap the rewards from their stronger platforms in the coming months.’
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