View more on these topics

Tilney combines multi and hedge Fofs with protection

Tilney Investment Management is introducing a structured product which combines a multi-manager fund of funds and a hedge fund of funds with full capital protection.

The Opal tailored notes plan series 2 product has been designed by Opal Alternative Investments – which is part of the Tilney Group – and runs for six years and six months.

The product has a minimum investment of 10,000 or 5,000 through an Isa and it features a choice of two investment options.

The diversified growth option provides 100 per cent of any growth in the Opal Optimum diversified tailored notes fund.

This is a feeder fund which invests 50 per cent in the Opal optimum master hedge fund of funds and 50 per cent in the Opal UK premier manager fund of funds.

The optimum growth option provides 100 per cent growth linked solely to the Opal optimum master fund through the Opal optimum tailored notes feeder fund.

The underlying fund is a multi-strategy fund of hedge funds which has Tremont Capital Manage-ment as its investment adviser.

Initially, the feeder funds will be exposed to 100 per cent of the growth in the funds but this can be varied between 80 and 150 per cent to enhance returns where performance is good or to protect the capital when performance is bad.

Opal Alternative Investments investment director Frances Clayton says: “We have tried to combine the benefits of defined participation and constant proportion portfolio insurance. CPPI runs the risk of deleveraging down to levels of exposure that are too low.

“We decided to build a floor into the product so that it cannot go below 80 per cent of exposure but it can still provide 150 per cent exposure when things go well.”

Recommended

Julian Gibbs

JO Hambro has attracted yet another top fund manager, Clive Beagles, former manager of Newton higher-income fund.

Out of context

Any Out of Contexts or Diary stories? Send them to Diary editor Alison Bone, email: alison.bone@centaur.co.uk or tel: 0207 943 8037

Provider investment in advisers only on commercial basis – FSA

The FSA has clarified that product provider investment in an advisory firm must be on commercial terms.The regulator says that if a provider invests in an advisory firm, whether by loans, investment or otherwise, it must be on commercial terms which are objectively comparable to those on which an independent person unconnected to a provider […]

Creating opportunity out of change

By Denise Wond, marketing manager The buy-to-let market has recently been the subject of a raft of tax changes, all of which make it a less profitable and less appealing proposition for investors. In response, we’ve seen a dip in demand for BTL mortgages and that’s bad news for many advisers who will now be looking […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment