View more on these topics

Isle of plenty

Axa Isle of Man has teamed up with Liberty Ermitage to offer an offshore unit-linked bond that invests in a fund of hedge funds.

The defensive bond invests in the Liberty Ermitage asset selection fund which is a global multi-manager portfolio of 22 hedge funds. The fund can be geared by up to 10 per cent and aims for low volatility with low correlation to equities.

The hedge funds that are considered will use a range of market-neutral arbitrage strategies, including merger arbitrage, which exploits the difference between current share prices and the potential value after a takeover. Funds that use other strategies, such as long and short equity and distressed securities, will be considered.

The bond aims to make it possible for retail investors to use the benefits of hedge funds during a period of uncertainty within equity markets. The Liberty Ermitage fund was chosen because it has the resources to monitor 4,000 hedge funds. Its analysts visit hedge fund managers and look out for new talent.

Like many hedge fund products, this bond is likely to appeal only to sophisticated high-net-worth clients and institutional investors such as pension funds rather than the mass market.

Its diversity across region, fund manager and hedge fund strategies positions this at the lower-risk end for hedge fund products. But there are offshore bonds, such as Man AP strategic series 2, which lower the risk of hedge funds further by offering a capital guarantee.


Mortgages plc links with Mortgageforce

Non-conforming lender Mortgages plc has been appointed by Mortgageforce as an approved product provider for its network of 87 independent mortgage franchises. Mortgageforce franchisees will have access to all of Mortgage plc&#39s range, including buy to let and right to buy.

&#39Slashing protection rates is a competitive illusion&#39

Aegon Individual Protection has slammed rivals which slash product rates to boost short-term market share, claiming these tactics are a competitive illusion which sell IFAs short. Managing director Janet Wyles says companies in the protection market which regularly reprice their ranges to gain a competitive advantage are failing to provide IFAs with relevant products which […]

FSA consumer body calls for Government to fund advice service

The Financial Services Consumer Panel is calling on the industry and Government to fund a central advice service to point lower income earners to safe haven products. The Panel is telling the Government and the FSA that only a centrally funded free financial planning service can offer financial advice to all. It wants the cost […]

HSBC Bank International assembles team of funds

HSBC Bank International has introduced a fund of funds that can be tailored to suit different risk profiles.This offshore fund of funds aims for capital growth through adventurous, balanced and cautious portfolios. Free switching between the portfolios is allowed and each portfolio consists of between 15 and 35 funds.The cautious portfolio is designed for investors […]

Artemis Monthly Distribution Fund: positioning and outlook

Managers James Foster and Jacob de Tusch-Lec outline the fund’s investment approach and discuss current investment themes and outlook for the bond and equity markets. As James and Jacob confirm, the Artemis Monthly Distribution Fund’s aim is to generate an income from both equities and bonds. They explain their investment approach in each asset class, the sectors where they are […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm