GENEVA (HedgeWorld.com)–Capital Management Advisors Group has launched a 15-year capital guaranteed product linked to a hedge fund of funds that is being sold to European insurance companies.
The note has already gathered 135 million euros in assets (US$145 million) and is the fifth structured product linked to a hedge fund of funds managed by CMA. The firm is expecting to grow to US$1 billion in assets under management from its current US$650 million in institutional and private client assets.
“Here (in Europe) investors still have very low exposure to funds of funds,” said Sabby Mionis, a partner of the Luxembourg-based group. “This (fund) is going to grow significantly I think.”
The new 15-year guaranteed note is linked to the Berklay Global Fund, which is a multi-strategy hedge fund of funds advised by CMA. The notes are structured to deliver an annual yield of 2.4%, and a guarantee is placed on the initial capital investment via Societe Generale, which is issuing the note.
Demand from institutional investors for an offering that combines exposure to hedge funds with capital protection and a significant income component is what lead to the creation of the 15-year note, according to officials.