View more on these topics

PFB links to FTSE hedge fund index

Pinder Fry & Benjamin has established a capital guaranteed fund that gives exposure to the FTSE Hedge Directional Index. This is made up of 20 hedge funds which use a range of strategies.

The PFB guaranteed FTSE Hedge Index fund has a minimum investment of £10,000 and uses constant portfolio protection insurance to provide geared exposure to the index of up to 150 per cent when market conditions are good. When market conditions weaken, the CPPI model determines when exposure to the index needs to be reduced in favour of cash. This method allows the fund to potentially outperform the index in strong and weak markets.

If market conditions are so bad that the fund is entirely invested in cash, the fund cannot get back into the hedge fund market and investors will get only their capital back at the end of the term.

The fund does not have a quoted target return as this figure will depend on market conditions and how much exposure the fund has had to the hedge fund index. Currency hedging will be used to minimise the risk sterling-based investors would otherwise face due to movements in exchange rates.

Pinder Fry & Benjamin director Charles Fry feels this product meets the needs of retail investors who are keen to diversify their portfolio through hedge fund exposure, but who have been deterred by the regulatory environment, high minimum investments, worries about currency risk, risk to capital and complexity.

He believes retail investors will feel comfortable investing in a product which is linked to a FTSE index rather than a manager selected portfolio of hedge funds that investors do not understand.

However, investors should note that the PFB product’s charges and cost of the guarantee will reduce the fund’s return and the CPPI model used may not necessarily be as successful as expected.


Tories pledge to match savings

The Conservatives have unveiled plans for a lifetime savings account, extending taxfree limits for Isas and giving employees access to financial advice.

LivVic reasserts mortgage guarantee

Liverpool Victoria has reaffirmed its guarantee that the maturity value of mortgage endowment policies will be at least equal to the death benefit.

DWS launches ratebuster

DWS has unveiled the DWS ratebuster, an Oeic that has been designed to offer a higher return than bank and building society accounts with the attraction of capital protection.

India budget: BJP focuses on growth

By Kunal Desai, Head of Indian Equities

With markets kept open on Saturday, finance minister Arun Jaitley delivered a promising budget focused on growth and decentralisation. While many complained about a six-day working week, there was much to be pleased about and the markets rallied in the afternoon to finish in the green.


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 advice.

    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