Ireland's Investment Companies Woo Retail Investors With More Hedge Fund Opportunities

Amanda Banks, Tax-news.com, London

12 March 2001

With a significant number of financial institutions in Ireland announcing plans to launch hedge fund investment vehicles, it is a good time to be an Irish-based retail investor.

Irish Life says it has plans to target wealthy retail investors with a series of hedge funds with a minimum investment requirement of I£20,000 and will recommend that no more than 20 per cent of an investor's portfolio should be invested in the hedge funds. Hibernian Investment Managers and Eagle Star say they are also considering adding hedge funds to their product range, and Davy Stockbrokers has confirmed that it wants to offer its clients more investment opportunities and is currently conducting talks with potential hedge fund suppliers.

But beating them to the post is Friends First which has just launched two hedge funds. The Insight Currency Fund and the Insight Equity Fund are both aimed at sophisticated private investors and institutions. Commenting on their launch, Group Managing Director of the company, Adrian Hegarty, said: 'The fact that Friends First is first in the marketplace with these funds is indicative of our commitment to deliver quality products and services.'

Friends First say the Insight Equity Fund, managed by UK-based Thames River Capital, is a single premium policy which invests in a European equity hedge fund that will hold short as well as long positions in European equities giving investors the potential to achieve positive returns even when the underlying stock market prices fall.

The Insight Currency Fund, also a single premium policy, invests in currency trades. It offers an opportunity to obtain high returns independent of fluctuating stock market conditions and changing interest rates. This fund is managed by Dublin-based Alder Capital and Friends First say it is particularly interesting because it 'lacks correlation with equity markets therefore providing real diversification opportunities for investors.'

John Murphy, general manager of distribution at Friends First, says its new funds are aimed at sophisticated high net worth individuals: 'These type of funds are typically only available to professional investors and institutions with large sums to invest. However, by pooling the resources of a number of individual investors, the critical mass required to participate in these type of funds can be achieved,' he said. The minimum investment for both funds is I£50,000.

Group planning and marketing general manager, Mr John Cunningham, told the Irish Times: 'This is not an investment for your pension fund. Our view is that no more than 15 to 20 per cent of any client's portfolio should go into hedge funds, so a client would need to have total investments or funds to invest of about I£250,000 to I£300,000.'

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