HSBC's Fund of Hedge Funds business

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15 December 2004

At last week's European Fund of Hedge Fund Awards 2004, HSBC won the "Best European High Net Worth/ Retail Hedge Fund of Fund Products Provider" award for the second year in succession. This represents third party recognition of our range of hedge fund products aimed at the private banking sector. At the ceremony, HSBC Emerging AdvantEdge Fund was short listed with five other funds for "Best Risk Adjusted Return Over Three Years for a Specialist Fund". Also, at a separate awards ceremony by the publication Investment Week, HSBC European Absolute Limited was short listed amongst four vehicles as "Best Specialist Investment Trust".

The award is the culmination of a strong year for the fund of hedge fund business. During 2004 the fund range has been enhanced, for example:

In March 2004 several new hedged currency classes were launched to compliment the existing US Dollar currency product. Today, HSBC GH Fund and HSBC Multi-Adviser Arbitrage Fund offer currency classes hedged into Euro, Sterling and Swiss Franc. These new currency classes have shown steady growth in assets since launch.
As at the end of November 2004, all HSBC GH Fund classes have moved to a monthly liquidity cycle. Redemption requests will no longer attract a redemption charge. This replaces the previous status where monthly redemptions were subject to a 2% redemption fee and only quarterly redemption requests were accepted free of charge.
HSBC GH Fund has been registered for sale in various jurisdictions including Japan, Switzerland, Singapore, Lebanon, UAE, Bahrain, Jordan, Qatar and Oman.
As at the end of November 2004, the portfolios of HSBC GH Fund and the Alternative Class of All Points Fund of Funds Limited (the "Alternative Class") have been merged to create an overall portfolio with assets of over US$500 million.
HSBC's AdvantEdge range of funds has been extended by the addition of new vehicles during the course of the year. The HSBC range of funds of hedge funds now number over fifteen vehicles.

These developments significantly enhance the fund of hedge fund range that HSBC provides and set the foundation for 2005, a year in which the business is expected to grow after a strong 2004. Assets under management in the core offshore vehicles offered grew by over 70% in the first ten months of the year.

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