LONDON (HedgeWorld.com)?Platinum Wealth Management plans to launch a savings program that allows regular investment in hedge funds in amounts as small as ?150 (about US$250) a month.
Platinum Wealth, an affiliate of Platinum Capital Management Ltd., London, will offer the life insurance-based investment program to investors outside the United States and the United Kingdom.
Hansard International Ltd., a specialist insurance company based in the Isle of Man, will package the insurance policy, which will be invested in a portfolio composed of five Platinum funds. Initially the allocation will be: 35% Platinum All-Weather Fund, which is equity market neutral with an options component; 30% Platinum Equity Plus Fund, equity multi-strategy hedge funds; 20% Platinum Washington Fund, an equity long/short fund; and 15% Platinum Turnberry Fund, a distressed securities fund. (In late September, Platinum announced the partnership with Turnberry to offer the Platinum Turnberry fund .)
Craig Reeves, managing director for Platinum Capital, said the new savings program will be geared toward offshore high-net-worth investors who historically might not have had an interest or even access to hedge fund portfolios. He said the savings program approach is a natural progression for the high-net-worth market, which is creating easier and more familiar ways to invest in hedge funds, such as through index funds. Moreover, the savings program format is familiar to wealthy investors and allows for a smaller amount of money to be invested than is typical for hedge funds. ?We created this because our audience requested it,? he said.
Investors will have to make an initial investment of at least two years worth of payments, or ?1,800, before they can start the monthly investments, Mr. Reeves said. Quarterly and annual contributions can be set up, as well.
The Hansard life insurance product is designed to be effectively tax free until maturity, and even at that point generally taxes will not be withheld, though there are exceptions in certain countries, according to a Platinum statement. Maturities from 10 years until the investor turns age 65 can be used. Contributions can be made in most freely convertible currencies, Platinum said.