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ABN AMRO Launches First Hedge Fund in Singapore

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SINGAPORE (–ABN AMRO has filed a prospectus with the Singapore Monetary Authority for its first hedge fund in the region.

A fund of funds, the ABN AMRO Alternative Investment Strategies Fund, will invest in the ABN AMRO Multi-Strategy Fund, an Irish-domiciled fund listed on the Irish Stock Exchange. ABN AMRO is offering this to the retail market more than a year after the Singapore Monetary Authority released its guidelines for retail hedge fund offerings.

The minimum investment in the fund is S$100,000 (US$56,600). The manager of the fund, ABN AMRO Asset Management (Singapore) Ltd., may terminate the fund if its value falls below S$5 million or if at least S$10 million isn’t raised.

The underlying fund’s strategies may include: managed futures and options; long/short equity; dedicated short bias; equity market-neutral; convertible arbitrage; fixed-income arbitrage; global macro; short selling; and event driven such as merger arbitrage, distressed securities and high yield. In the fund’s two-year history, it has invested in 34 investment programs and only dropped six of those programs. Expected turnover rate going forward will by 20% to 50% a year.

Numerous investment restrictions are on the fund. For example, the fund may invest up to 30% of its net assets in any one investment program but not more than 20% in any one limited partnership. Also the fund will invest in a minimum of three investment programs and may invest up to 20% of its net assets directly in equities or money market instruments.

According to the prospectus, investors will need to be aware of a triple layer of performance and management fees in addition to an initial service charge of 5%.

Singapore is considered one of ABN AMRO Asset Management’s five ‘Centres of Excellence.’ Its Singapore asset management branch, with S$2.34 billion in assets as of May 31, is responsible for managing Asia Pacific fixed-income mandates, global bond portfolios and also domestic bond plus mandates. According to the prospectus, the Singapore office is also in charge of sales and marketing for ABN AMRO Asset Management’s funds and expertise in all of Singapore and the South Asia region.


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