Baring Asset Management Launches the Asia Strategic Fund
Baring Asset Management, the international investment management firm, is pleased to announce the launch of a new addition to its range of single strategy hedge funds, the Baring Asia Strategic Fund, subject to regulatory approval.
This new equity multi-strategy fund, managed by Baring Asset Management's Asian equity team, is expected to launch on 1st March 2008, and will be available to institutional and other professional investors.
The Baring Asia Strategic fund will invest in Asian equities excluding Japan, but including Australasia and India. The manager will adopt a range of investment techniques to deliver positive absolute returns for investors, targeting returns in excess of 20% per annum with a maximum volatility of 15% and a strict limit on the portfolio Beta.
Adrian Au, manager of the Baring Asia Strategic Fund comments: "The fund will allow investors to access the immense growth potential on offer in Asia, on a risk adjusted basis. The strategies employed will include thematic, directional, arbitrage, event driven, pairs trading and other liquid investment strategies that can produce uncorrelated returns. The portfolio will consist of approximately 50 diversified positions. The aim is to create a relatively beta neutral portfolio that is uncorrelated to the Asian markets and not dependent on directional bets"
The Baring Asia Strategic fund will be available in both US Dollar and Euro Share Classes, domiciled in Ireland and listed on the Irish Stock Exchange. There will be an annual management fee of 1.75% and a performance fee of 20%, with a high water mark. The fund provides monthly liquidity with no lock up. The minimum investment will be €125,000 or currency equivalent.
Paul Graham, Head of Alternatives Business Development and Distribution, said: "The fund aims to capture the very high growth potential in Asia without taking an active bet on market direction – we are simply leveraging off the expertise and track record of Adrian and our Hong Kong investment team. As Asian economies mature, we believe the fund will provide excellent opportunities for investors to access a wide variety of sources of Alpha in markets across Asia.
Although markets have been volatile recently, we continue to believe in the fundamental strength of the region. We believe an equity multi strategy fund drawing on our proven research capabilities and top down calls is a very logical approach. It allows us the best opportunity to generate attractive risk adjusted returns and should appeal to investors seeking to invest in the region, without the high levels of Beta that are typically associated with Long/Short Asian funds.
"Barings has a long history of investing in Asia, having covered the region from its base in Hong Kong for over 30 years. Our fundamental research and stock picking capability combined with dedicated hedge fund management provide an excellent opportunity to take advantage of the investment opportunities that exist in Asia."
Baring Asset Management
Baring Asset Management is an international investment management firm with investment skills, clients and business locations spanning world markets. Our investment competency encompasses developed and emerging market equity, fixed income and multi-asset portfolio management services offered to institutions, retail investors and private individuals. Worldwide clients include public and corporate pension plans, government agencies, financial institutions, charitable organisations, mutual funds and private individuals.
Baring Asset Management is part of the MassMutual Financial Group, a global, diversified financial services organization. Massachusetts Mutual Life Insurance Company (MassMutual) is one of the largest life insurance businesses in the USA.
The Baring Asia Strategic fund will invest in Asian equities excluding Japan, but including Australasia and India. The manager will adopt a range of investment techniques to deliver positive absolute returns for investors, targeting returns in excess of 20% per annum with a maximum volatility of 15% and a strict limit on the portfolio Beta.
Adrian Au, manager of the Baring Asia Strategic Fund comments: "The fund will allow investors to access the immense growth potential on offer in Asia, on a risk adjusted basis. The strategies employed will include thematic, directional, arbitrage, event driven, pairs trading and other liquid investment strategies that can produce uncorrelated returns. The portfolio will consist of approximately 50 diversified positions. The aim is to create a relatively beta neutral portfolio that is uncorrelated to the Asian markets and not dependent on directional bets"
The Baring Asia Strategic fund will be available in both US Dollar and Euro Share Classes, domiciled in Ireland and listed on the Irish Stock Exchange. There will be an annual management fee of 1.75% and a performance fee of 20%, with a high water mark. The fund provides monthly liquidity with no lock up. The minimum investment will be €125,000 or currency equivalent.
Paul Graham, Head of Alternatives Business Development and Distribution, said: "The fund aims to capture the very high growth potential in Asia without taking an active bet on market direction – we are simply leveraging off the expertise and track record of Adrian and our Hong Kong investment team. As Asian economies mature, we believe the fund will provide excellent opportunities for investors to access a wide variety of sources of Alpha in markets across Asia.
Although markets have been volatile recently, we continue to believe in the fundamental strength of the region. We believe an equity multi strategy fund drawing on our proven research capabilities and top down calls is a very logical approach. It allows us the best opportunity to generate attractive risk adjusted returns and should appeal to investors seeking to invest in the region, without the high levels of Beta that are typically associated with Long/Short Asian funds.
"Barings has a long history of investing in Asia, having covered the region from its base in Hong Kong for over 30 years. Our fundamental research and stock picking capability combined with dedicated hedge fund management provide an excellent opportunity to take advantage of the investment opportunities that exist in Asia."
Baring Asset Management
Baring Asset Management is an international investment management firm with investment skills, clients and business locations spanning world markets. Our investment competency encompasses developed and emerging market equity, fixed income and multi-asset portfolio management services offered to institutions, retail investors and private individuals. Worldwide clients include public and corporate pension plans, government agencies, financial institutions, charitable organisations, mutual funds and private individuals.
Baring Asset Management is part of the MassMutual Financial Group, a global, diversified financial services organization. Massachusetts Mutual Life Insurance Company (MassMutual) is one of the largest life insurance businesses in the USA.
