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Axa IoM&#39s offshore bond offering hedge Fof for cautious investors

Axa Isle of Man is launching a new offshore bond designed for cautious investors which invests in a fund of hedge funds.

The defensive bond is an offshore unit-linked single premium bond investing in a low-risk fund of hedge funds. It aims to provide a return two to three times better than cash with low volatility.

Axa Isle of Man believes that a fund of hedge funds offers increased diversification and consistent returns with lower volatility for the cautious investor.

The bond uses the Liberty Ermitage asset selection fund, a fund of hedge funds from the Liberty Ermitage Group that is part of Standard Bank. It has £550m under management in hedge funds across Europe.

The asset selection fund invests in a portfolio of 22 low-risk hedge funds. It was launched in 1994 and has £150m under management.

Minimum investment is £25,000. The bond can be used for income and/or growth investing. It can be set up on a capital redemption or life insurance basis. Annual charge is 1 per cent.

Offshore marketing manager Christine Hall says: “At a time of economic uncertainty and volatile equity markets, investors are looking beyond traditional investments to maximise returns.

“Hedge funds look to achieve the maximum return for the level of risk. The bond provides investors with a tax-efficient investment opportunity”

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