HSBC Republic Investments Limited is helping hedge fund investors mitigate currency risk by launching a new Sterling hedged share class within HSBC Global Absolute Limited, the closed-ended investment company that invests in a diversified range of hedge funds.

The new share class seeks to provide Sterling currency investors with access to a portfolio of leading hedge funds/absolute return funds. Like most other similar vehicles, HSBC Global Absolute Limited’s investments are primarily in US dollars, so the introduction of the Sterling share class will help reduce the effect of currency movements on investment returns.

The aim of many hedge fund portfolios is equity like returns with lower levels of volatility than equities in general. They have typically shown:

The Sterling share class is being sponsored by HSBC Bank plc and is available to private investors through financial advisers. Investors interested in learning more about the HSBC Absolute range of companies can also visit the website www.hsbcabsolute.com. Minimum investment in the class, which can be held within an ISA, is £5,000. With a primary listing on the London Stock Exchange, HSBC Global Absolute Limited – Sterling share class also offers investors daily liquidity.

Paul Dunning, Chief Executive, HSBC Republic Investments Limited, said: “Since the launch of HSBC Global Absolute Limited in 2001, investors have benefited from positive investment returns and a successful discount mechanism so that the company has traded close to its net asset value. This combination provides confidence to investors seeking exposure to hedge funds through a closed-ended investment company.

"The new Sterling share class aims to provide Sterling currency investors with an attractive opportunity as the listing provides for daily liquidity as well as access to some of the world’s top performing hedge fund managers. The diversified portfolio of hedge funds makes this an ideal choice for investors interested in alternative investments from a low risk perspective."

Originally launched in November 2001, having raised £125 million, HSBC Global Absolute Limited is a closed-ended Guernsey incorporated company with a primary listing on the London Stock Exchange. It invests globally in a diversified portfolio of hedge fund strategies.

With more than 14 years investment experience in the hedge fund sector and over US$10 billion of client assets invested in alternative strategies, HSBC Republic has the experience and performance track record to maximise the potential returns from fund of hedge funds investment.

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