ALTERNATIVE INVESTMENT STRATEGIES GBP

  • 0.00p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.00%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.21%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Fund data last updated 08 November 2011

This is a multi manager, multi strategy fund of hedge funds listed on the LSE. Underlying funds are selected by IAM. The overall objective is to maximise absolute returns whilst reducing exposure to market movements. Investors should be aware that hedge funds do not guarantee a positive return and you could get back less than you invested, as with any other investment. Additionally, the underlying assets of these funds generally use complex hedging techniques through the use of derivative products, which can carry additional risks which may not be immediately apparent.

Fund summary

Sector Investment Companies
Structure X-INVESTMENT COMPANY
Launched
Size £142m
Yield 0.00%
Charging basis n/a
Dividends paid none

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.21%

Allocation

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Investment process

This fund invests in a range of international hedge funds, selected by IAM. About 1/3 of the portfolio is in long/short equity strategies with the remainder invested in the following strategies: Event Driven (Merger Arbitrage, Corporate Restructuring, Distressed Debt & Multi-Strategy), Trading (Macro, Commodity & Systematic) and Relative Value (Market Neutral, Convertible Arbitrage & Volatility Models). To qualify for the approved list, a prospective hedge fund manager must pass a series of quantitative and qualitative screening processes. Managers are then combined so that the mix and range of strategies work together to deliver absolute returns whatever the market circumstances. Rigorous, disciplined research and analysis underpin manager selection, portfolio construction and risk management. Detailed due diligence provides a systematic framework for tracking individual manager risk. As part of IAM’s active portfolio management process, IAM’s approved managers undergo stringent monitoring on an ongoing basis.

Following a management buy-out in 2008, the fund of hedge funds is run by the same management team that have been involved in the sector since 1984. The portfolio is well diversified by style and by manager. We have been impressed with level of in-house analysis (database) and regular contact with the underlying managers. This fund has a continuation vote at the AGM in February if the average discount exceeds 5% in every 12 months to 31st October. This could mean shareholders get an opportunity to exit at NAV.

Manager research

Average monthly relative returns

  • 14/15 0.00%
  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Track record

Periods of worst performance

Absolute 0.00% ()
Relative 0.00% ()

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Portfolio

Typically 75% allocated to US based managers and about 1/3 of assets allocated to Long/Short strategies. As at 31/10/10 the portfolio was invested in 32 managers across 7 strategies. Liquidity: Monthly 23%; Quarterly 67%; Annual 4%.

Key Investor Information

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