View more on these topics

GNI guarantees hedge return

GNI Fund Management, a subsidiary of Old Mutual, has followed up its two GNI global strategies funds with GNI global strategies, a capital guaranteed offshore fund that invests in hedge fund strategies and futures.

The fund is structured as an Oeic and aims to produce a target return of 14 per cent a year over its seven-year term. It will diversify across four alternative investment strategies run by different fund managers. Equity arbitrage is managed by Merrill Lynch Investment Managers and will mainly exploit anomalies in share prices when the composition of stockmarkets change. The long and short European equities strategy is managed by Thames River Capital on a bottom-up basis. The long and short Government bond strategy is managed by a company called Sinopia. Winton is the company responsible for the futures programme, which uses a computer-based trading system to trade around 100 futures.

The mixture of strategies from different management groups means that investors are not relying on a single strategy to work well at all times, neither are they reliant upon one fund manager. In addition, the capital guarantee may provide some security in such a highly speculative area where losses could be heavy.

However, there is no guarantee that the fund will meet its target return each year, so investors expecting high returns in exchange for the high risks they are taking could end up with only their original capital after seven years.

Recommended

Chelsea Building Society – 2 Year Fixed Rate Bond (11th Issue)

Thursday 14 February, 2002. Type: High interest account. Minimum-maximum investment: £1,000-£500,000. Interest rate: 5 per cent. Term: Until May 4, 2004. Offer period: Until further notice. Withdrawal penalties: 60 days&#39 loss of interest. Tel: 01242 283593.

Commission slur by Equitable brings angry response by IFAs

IFAs have slammed Equitable Life for claiming in a national newspaper advertisement and in letters to with-profits policyholders that the only reason they are being advised to quit the troubled life office is so advisers can earn commission.In the ad and letters, Equitable says policyholders should “seriously question” the wisdom of independent advice recommending switching […]

Call for FSA to lighten regulation

The FSA should introduce lighter regulation on some products for life offices with Raising Standards accreditation or face the public abandoning the industry, says CIS.General manager (life and compliance) Mike Fairbairn says the FSA should slacken rules on certain products and exempt accredited firms.Without some form of cre-dit rating for firms based on the Raising […]

Annuity private member bill reaches committee stage

Conservative MP David Curry&#39s private member annuity reform bill will have its committee stage on February 14, where it will be debated and amendments raised by MPs from all parties.Following the Opposition&#39s victory over the Government at second reading of the Bill a month ago, this is the next stage in the parliamentary process for […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment