Mashreqbank has launched its first Hedge Fund named MashreqInvestments Alternative. A diversified Hedge Fund, it is managed by Société Générale Asset Management and advised by Alpha Investments.
This five-year tenor fund offers a 100 percent capital guarantee on maturity and a minimum guaranteed returns of two percent returns per annum paid out every 12 months. In addition the fund offers an exposure of up to 200 percent to the diversified Hedge Fund basket.
The guarantor of the note is Société Générale with an S&P rating of AA-.The new investment has a simulated past performance of 15.73 percent and a lower redemption fee compared to similar Hedge Funds and quarterly liquidity, according to a company press release.
"Since savings interest rates are at an all time low, investors are looking at alternative options that guarantee the principal amount and allow for equity like returns with bond like volatility. In addition a unique feature of this offering is that the bank will earn returns when the investor earns returns on a high watermark basis,” said Nabeel Waheed, head of Investments at Mashreqbank.
"Investing in fund of Hedge Funds offers several benefits such as diversification from traditional market, absolute return focus, low volatility, access to multiple hedge fund managers through various strategies in a single fund and managed with the Constant Proportion Portfolio Insurance (CPPI) Methodology," added Waheed.
The offer is open until 20 June 2002 or earlier if over subscribed. The fund has a minimum investment of $5,000 and there are no bank processing fees on subscription. This product along with all other MashreqInvestment products is available through its wide network of 30 branches. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
