Tracker Fund Of Hedge Funds Launched In UK

Investors offshore.com, London

03 September 2001

Global Investment Advisors ("GIA"), a London based investment management company specialising in alternative investment products and a subsidiary of Integrated Asset Management Plc ("Integrated"), announced last week that it has launched one of the first multi-strategy tracker fund of hedge funds in the UK.

The GAIM Hedge Fund Ltd. ("GAIM"), has a passive investment strategy, where assets are invested in to up to 20 hedge funds, allocated to the five largest funds by asset size (in the CSFB-Tremont Hedge Fund Index) in four main strategies - macro, market neutral, long short equity and event driven. This enables the investor to gain exposure to the hedge fund industry through a diversified portfolio of leading hedge funds while reducing their exposure of risk to a single investment strategy. GAIM is incorporated in the British Virgin Islands.

In addition, the minimum investment into the Fund is US$10,000 or Euro10,000, dramatically lowering the entry barriers for potential investors. The minimum investment requirement in a hedge fund typically ranges between $250,000 to $100,000. An investor who wishes to build a diversified portfolio composed of the world's leading hedge funds, would therefore require approximately $8-10 million to invest. GAIM is also available in another share class (Class B) where the minimum investment level is $100,000 or Euro100,000 and is listed on the Dublin Stock Exchange.

GAIM's investments will be entirely transparent, by disclosing all of the underlying funds and weights in the portfolio enabling the investor to be aware of exactly what their money is being invested in. GIA is also marketing Capital Protected Notes guaranteed by Lehman Brothers linked to the performance of GAIM. The Notes will offer the investor access to the hedge fund industry via GAIM, with 100% capital protection at maturity and the opportunity of leveraged performance provided by Lehman Brothers.

The launch of GAIM follows the exponential growth of the UK hedge fund industry which, according to a recent study carried out by Tower Group, has grown by 56% in the last year, currently standing at $39bn, the same size as the US market in 1990.

Commenting on the launch of GAIM, Global Head of Sales and Marketing, Xavier Vilar said, "The GAIM product makes the hedge fund investment opportunity accessible to a broader range of investors through its low minimum investment, while providing an innovative investment strategy, spreading risk across a diverse range of hedge fund strategies and reducing volatility. We have received a high level of interest to date which would suggest there is a real demand for this type of product".

GIA was established in 1991 and is regulated by the FSA. Since 1991, GIA has been the investment manager to Capital Management Limited, an international asset management firm and to its wholly owned subsidiary CML Fund Management.

Raffaello Nemni is the Investment Manager of GAIM. He has been in charge of portfolio Management at GIA since 1994. From 1991 to 1994, Raffaello was responsible for interest rates, currency arbitrage and risk management at Capital Management Limited, the international money management firm with more than Euro230 million (£140 million) under management.

The Fund will be marketed across Europe, the Middle East, South Africa, Asia, and Latin America via Integrated's subsidiary companies, IFA's, and financial institutions. The Fund is targeted at both institutional and sophisticated retail investors.

GIA is wholly owned by Integrated Asset Management Plc, a global asset management company with offices in 6 countries across 4 continents. Integrated Asset Management Plc is listed on the Alternative Investment Market of the London Stock Exchange (AIM) and is owned by a mix of institutional shareholders, management and private investors.

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