NIB International is adding to the hedge fund market with the introduction of its optimum return fund.
The fund is an open-ended investment company (Oeic) based in the Isle of Man. It is aimed at two types of investor. The first is the experienced, sophisticated high-net-worth investor with at least $25,000 to invest and who is comfortable with a high-risk investment. The second is the institutional investor, such as pension fund trustees or banks. The Oeic is available to clients in both the UK and offshore.
Optimum return has been structured as a fund of hedge funds and will invest in wide spread of between 30 and 35 hedge funds. Up to 70 per cent of the funds will have long or short strategies and the remaining 30 per cent will cover merger arbitrage and market neutral strategies.
Although based in the Isle of Man, the funds investments will be managed by a six strong team in London, headed by Brendan Robertson. Robertson heads the multi-manager part of the company and has worked for NIB International since 1996.
Compared to the recently introduced GAIM hedge fund, the NIB International fund is more restrictive in terms of strategies. The GAIM product is a fund of hedge funds that invests in up to 20 hedge funds covering four strategies, including macro, market neutral, long and short equities and event driven. It also has a lower initial investment level of $10,000, making it more accessible.
According to Standard & Poors of the 10 NIB International funds on the market, two are first quartile, three are second quartile and five are third quartile, based on £1,000 invested on a bid-to-bid basis with gross income reinvested over one year to September 24, 2001.