Swiss Asset Manager Blazes Trail In Spanish Hedge Fund Market

by Phillip Morton, Investors Offshore.com

29 May 2007

The Swiss banking group SYZ & CO and the Madrid-based asset management company A&G Fondos, Asesores y Gestores Financieros Fondos have announced the imminent launch of two Spanish-regulated funds of hedge funds.

SYZ & CO and A&G are thus among the first institutions to benefit from new Spanish legislation authorising the marketing of alternative investment funds. Thanks to this agreement, the SYZ & CO Group is taking its first step in developing its alternative asset management services in the Spanish market.

These two funds regulated by Spanish law, AYG SYZ Multi Strategy and AYG SYZ Low Volatility, are expected to be approved in the coming weeks by CNMV, the Spanish regulator. New Spanish regulations on funds of hedge funds require the fund manager to be a Spanish entity holding a specific licence for that purpose. A&G will therefore act as manager of these funds and will be in charge of their marketing in Spain. SYZ & CO will advise A&G through its alternative management division, 3A SA.

The two funds will be euro-denominated, with a minimum investment of EUR 100. AYG SYZ Multi Strategy will be rebalanced monthly, while AYG SYZ Low Volatility will be rebalanced quarterly. Annual management commissions will be charged at 1.5% for both funds, with a performance fee of 8% for AYG SYZ Multi Strategy and 5% for AYG SYZ Low Volatility.

A&G will market these products directly to its own clients and also through other entities or fund distribution platforms. Its established local presence and its orientation toward alternative funds should facilitate market penetration for these two new funds. SYZ & CO also intends to offer institutional investors the opportunity to invest through direct mandates to manage hedge fund portfolios.

The Swiss banking group SYZ & CO was founded in 1996 by Eric Syz, Alfredo Piacentini and Paolo Luban. In addition to the Bank’s headquarters in Geneva, the Group also has offices in Switzerland in Zurich, Lugano and Locarno, as well as abroad in Milan, Rome, London, Luxembourg, Salzburg and Nassau.

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