Swiss banks launch 'transparent' hedge product
SWITZERLAND - Bank Hofmann and saisGroup of Zug are targeting a rising demand for alternative investments with the launching of a fully transparent hedge product with daily valuation and trading at Net Asset Value (NAV).
Investments by the firm will only be made in strategies that guarantee full disclosure of their positions and transactions.
The target return for the fund arrangement is 10%-15% p.a. on a CHF basis.
“We are extremely happy about this partnership”, says Frank Ramsperger, chief investment officer and member of the executive board of Bank Hofmann.
“We are not only impressed by saisGroup’s expertise in this business, but in particular about their focus on transparency and risk management, which is a concept of growing importance for alternative investments.”
Ramsperger says the new product is the solution to the common problem that hedge funds packaged as quoted holding companies mostly feature a discount or premium to their NAV. “Vehicles which are structured as investment funds on the other side are mostly valued monthly or quarterly, in addition there is a pre-notification period. The new product with daily liquidity will provide a maximum of transparency”, says Dr. Werner E. Rutsch, head of the investment office of Bank Hofmann.