Magnum Global Funds' South African Arm Offers Alternative Investment Products

by Carla Johnson, InvestorsOffshore.com

03 May 2001

Magnum Global Funds, a leading hedge fund investment company, has decided to diversify its traditional hedge fund services by concentrating more on the provision of alternative investment products, such as a film fund to promote South Africa's film industry. To complement the company's restructuring it has also changed its name to MGF Capital.

Chief executive officer, Carla Fiford, told the South African press that MGF Capital will launch several alternative investment services which will meet the needs of corporate and institutional investors as well as individual clients. Already two new products have been announced - the CHIS Trade Fund and the Story Factory Film Fund (SF3). Ms Fiford said: 'These new products give us a far more predictable income stream and enable us to service a far larger segment of the sophisticated investor market. We believe there is strong demand in the market for the kind of alternative low-risk offshore investments we are launching, and these are just the first of several other such products to follow in due course.'

Magnum describes the CHIS Trade Fund as low-risk and will be invested with more than 15 market neutral fund managers in addition to a diverse investment-grade bond portfolio. It will have the same structure as an open-ended fund with US dollar-based returns of 10 - 15 per cent per year. MGF Capital says it expects the SF3 Fund to raise 330 million rand from South African investors with the Industrial Development Corporation already pledging 115 million rand.

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