HAMILTON, Bermuda (HedgeWorld.com)–Focus Investment Group is planning a new issuance of principal protected notes that will be guaranteed by Barclays Capital.
Barclays Bank PLC will guarantee 100% of the initial principal as well as a 1% yearly coupon paid in arrears. Focus will be managing the underlying fund, which is the Focus Opportunity Fund. The Opportunity Fund is a global multi-strategy fund with a seven-year track record.
The underlying strategies of the offering include: global macro, CTAs, long/short equity, distressed securities and convertible arbitrage. Focus is targeting returns of between 9% and 12% a year for the Opportunity Fund, but in the new principal protected offering, investors are guaranteed to maintain their principal investment and an additional 1% a year.
“Principal protected structures have come a long way and we feel that our unique approach truly offers the opportunity for investors to profit over the long term regardless of equity market direction, while also benefiting from a guaranteed rate of return through a coupon,” Eugenio Verzili, managing director, said in a statement.
The Focus Opportunity Note Series 1 is for non-U.S. investors and will be offered until Nov. 12. Available in euros and U.S. dollars, officials expect the fund to raise US$50 million initially.