CROYDON, England (HedgeWorld.com)–Forsyth Partners Ltd. launched two new versions of its Alternative Strategies Series I fund of funds, one providing 10-year capital protection and the other offering that same protection with a guaranteed income stream for at least half the term of the note.
The Forsyth Alternative Strategies Series I–Profit Protector Note offers 10-year capital protection plus 50% of the performance of the basket of hedge funds in which it invests, locked in semiannually, according to a statement from Forsyth Partners.
The Forsyth Alternative Strategies Series I–Income Generator Note offers 10-year capital protection; a guaranteed annual coupon of either 2% outright or 50% of basket performance, whichever is greater, for years one through five; and additional coupon for years six through 10 depending on certain conditions.
Both portfolios will use investments similar to those in the US$200 million Forsyth Alternative Income Fund, which invests in a number of hedge fund managers and strategies, including convertible arbitrage, fixed-income arbitrage, multi-strategy arbitrage, relative value and global macro, according to the statement.
The capital guarantee for the two Forsyth Alternative Strategies Series I funds will be provided by KBC Bank NV, Brussels, Belgium, via notes issued through KBC Financial Products International Ltd.
Both Forsyth notes will be offered in U.S. dollar, euro and sterling denominations. The minimum investment is US$50,000, or its currency equivalent. Subscription runs through May 20, and the notes mature on June 30, 2014.
Forsyth Partners Chief Executive Paul Forsyth said the two capital-guaranteed notes are the first of a series of such structured products the firm will launch in the coming year.
“Research has confirmed that these products continue to play an important role in the investment armory of a significant number of our clients, especially in the Middle East and Asia,” Mr. Forsyth said in the statement.