Dresdner Bank Offers Hedge Fund Certificates To Retail Investors
The seemingly unstoppable
march of the hedge fund across the world's financial
markets continues this morning with the launch by
Dresdner Bank of its A1 Global Hedge Certificate,
which is available in denominations starting at Euros10,000.
Following the model first
created several months ago by Deutsche Bank, the offer
bypasses regulatory restrictions on the marketing
of hedge funds by offering shares in authorised investment
funds which themselves hold the actual investments
in hedge funds. Dresdner Bank hopes that
the Certificates will return between 12% and 18%,
even if markets continue to be negative. The bank
believes that alternative products such as hedge funds
are more in demand right now just because regular
stock markets haven't performed well. The certificates have
a 5-year maturity, but they can be traded on the Deutsche
Borse after an initial 6-month period. The portfolio,
which Dresdner Bank hopes will exceed $1bn, will be
managed by Indocam Asset Management, a unit of France's
Credit Agricole. Indocam has managed hedge funds since
1992 and currently has some Euros770 million invested
in such assets. .
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