Funds that they will definitely give you

The supply of hedge funds is growing every month. If a financial group wants to be on course today, it should definitely have a hedge fund in its offer. At least that’s how it looks at the fund market today. This is also proved by the fact that assets in hedge funds recorded the highest percentage growth in the last six months. So how is the situation on the Czech market in the case of real hedge funds?

Tma zajitnch podlovch fond is currently very active. The offer is constantly expanding and the number of investment companies that offer these funds is long dark. Such a month there is a new offer of hedge funds on the market and it seems that it is one of the few investment instruments that is not affected by even the summer cucumber list. According to the statistics of the Association for the Capital Market (AKAT), assets in hedge mutual funds increased by K 2.52 billion to K 7.76 billion in the first year, which represents a growth of a nice 48% (this may be due to a low comparative base, but it’s still after money market funds a equity funds the most absolute finger). So let’s look at the main difference between hedge funds and non-profit funds and their charm.

The main advantage is, of course, the fact that, unlike other groups of funds, they certainly guarantee a return of the minimum amount invested, even when the markets for a period investment developed unfavorably. Evaluated is derived from some stock index, or the index code and some funds even guarantee a certain minimum appreciation, which you will receive as an investor after the investment. Unlike the classic fund, you can not lose invested funds, which is ensured by investing in medium-sized bondreputable institutions with a high rating and then the skills of large banks and financial institutions.

But there is not all the gold you ask for and the tact of the hedge funds is to realize all the pros and cons. The main inappropriate, although this may not apply to anyone, is a fixed period for which the investor must have a pension in the fund and for which the fund is designed. Hedge funds are closed products in which you invest your funds, and they remain there for the entire duration of the fund’s operation, usually for three or six years. It is the bottom pedevm tm, e fund structure is made up of such financial instruments that can guarantee entry only in a predetermined time horizon. If the investor then leaves the fund two, I will lose the guaranteed return, or pay high entrance fees. Entry fees do not differ from other types of funds, but may increase when the investor buys the unit certificates after the subscription period, intended for the purchase of unit certificates. Some companies do not even buy share certificates after the subscription period. So many people don’t mind that some funds have a limited upper limit of input and evening inputs they will then remain above this limit sprvci fondu.

Anyway, the offer of hedge funds is quite wide and each investor can choose a fund that will meet his first requirements. At present, u ms mvaj ve svm portfolio hedge funds of SOB, Komern banka, esk spoitelna and HSBC. In the current bag, offer these funds only to the first named.

ESPA-S zajitn fond 2

Investin společnost esk spoitelny (ISS) will only offer a secured share of funds on our market since this year. However, this does not change the fact that the investor is very popular (ESPA-S hedge fund 1 was sold out in those weeks). ESPA-S secures the fund for 2 months for a period of 4 years and during this time has issued investors a minimum return of 4%. The upper limit of the entrance is not limited and is dependent on the koe index DJ EuroStoxx 50, S&P 500 a Nikkei 225. Participation The fund’s koi is 83.5%. The minimum investment is 5,000 K, which suits me especially small investors. The subscription period b from 7.7 to 31.8.2004 and the fee for the entire period will be 0.3% of the trade volume. The entry fee will be between 2 and 5%, depending on whether the investor leaves the fund before termination or not. The fund is managed by the parent company ISS, Austria by Erste Sparinvest and the fund is denominated in Czech crowns.

Also provided by SOB

Another company that offers its own hedge funds is the investment company SOB, which, unlike the ISS, has many years of experience in offering hedge funds. To date, it has launched 31 of them and currently offers two new funds: SOB

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Digital Click 1 and SOB World Growth + 1. Both hedge funds are managed by the parent bank SOB, KBC with its registered office in Luxembourg. The funds are maintained in Czech crowns and have a minimum investment of 10,000 K. Subscriber period both funds last from 19.7. to 17.9.2004 and the entry fee in this period is 2%. After the subscription period, mono will be purchased under the sheets with a fee of 3%. The entry fees of both funds are zero when the fund is up and running, a fee of more than 1% in the event of early withdrawal of the investor. The contribution fund will be derived from koe akc, which consisted of 50% of the European market index DJ EuroStocxx 50 up to 50% from the North American market index S&P 500.

SOB Digitln Click 1 m investment period is set at 5 years, the maturity of the fund is set at 30.9.2009. The minimum guaranteed return is 8% and you can get the maximum for the period of the fund’s duration 25%. The investment period is divided into 5 periods, at the end of which the value of the index is compared with the previous situation. If the value decreases, the fund does not drink the deposit. If the value of the index does not fall, the fund will click on a 5% return. The returns for each period are consumed at the end and the investor receives a deposit + the final return, at least 8%. SOB World Growth + 1 will bring investors a minimum of 14% in six years, the maximum return is limited to 65%. Participation in the koi index is 50%, so the client gains 50% of the evaluated index in 6 years.

New in the market Komern banka

So far, the last company to launch a hedge fund on the market is Investin kapitlov společnost Komern banka (IKS KB). The world’s maximum guaranteed fund has a fixed period of 4 years and the company guarantees a return on at least the amount of investment for this period. The maximum entry limit is not limited, the fund is kept in Czech crowns and the minimum investment is 10,000 K. Entry fees in the subscription period, which lasts from 26.7. to 26.10 2004, range from 1.5% to 2%, depending on the investment. After the subscription period, investors can buy share certificates with a fee of 10%. Entry fees as of the maturity date are zero, before the end of the fund’s duration they range between 1.5% and 3% depending on the time remaining until maturity. The fund is managed by the French company Socit Gnrale Asset Management. The interest that sets the fund apart from other similar instruments is the investment strategy of the fund, which does not relate to a fixed index or group index. The fund’s managers thus have investment space and can invest the entire assets of the fund in risky assets or non-risky assets. Non-risk assets are made up of traditional foreign bonds, risk assets are the S&P 500 index, Nikkei 225 and DJ EuroStoxx 50. Similar to the SOB Digitln Click fund, the locking principle works here as well. When the value of a leaf is increased by 15%, the guaranteed value increases by half of this growth. In the case of this fund, the transparent structure of all the fund’s fees, the management fee (maximum 1.5%) and the total expected costs (maximum 2% for 2004) is a fairly significant phenomenon. Funds do not publish this information.

Nzev

End of enrollment. period

The duration of the fund

Index

Rated

Fees

Minimal investment

min.

max.

entrance

entrance

ESPA-S zajitn fond 2

31.8.04

4 years

EuroStoxx Nikkei 225 S&P 500

4%

0,3%1st year 5% 2nd year 4% 3rd year 3% 4th year 2%

5 000 K

UNDERDigitln Click 1

17.9.04

5 let

EuroStoxx S&P 500

8%

25%

subscription period 2%upon enrollment. period 3%pedas. 1% at the end of 0%

10 000 K

UNDERSvtovhorstu 1

17.9.04

6 let

EuroStoxx S&P 500

11%

65%

subscription period 2%upon enrollment. period 3%pedas. 1% at the end of 0%

10 000 K

Max – the world’s guaranteed fund

26.10.04

4 years

EuroStoxx Nikkei 225 S&P 500

0%

subscriber period1.5% – 2% per enrollment. period 10%1st year 3% 2nd year 2.5% 3rd year 2% 4th year 1.5% at the end 0%

10 000 K

Source: Strnky spoenost

HSBC: an offer for the rich and experienced

In order to be completely complete with our company providing hedge funds, we must not forget the other large bank, which, in cooperation with its parent company, will list these products quite often. Like SOB, HSBC has many years of experience in offering secured funds and currently has several plates in its portfolio. Although this company does not currently offer the current fund (the subscription period for the last two funds ended on August 17, 2004), we can expect some news from HSBC in the near future. The common feature of these funds is the offer of researchers around the world, and the source of the fact that the funds are not denominated in Korunch, but in some of the worlds, or in many of them at the same time (for example, british libe). Entrance and entry fees are usually not paid, only fees for early repurchase are required. On the contrary, with the early purchase, there are even bonuses for the investor, their amount depends on the amount invested. It is not possible to buy these funds after the subscription period has expired; The maximum return may be limited and there is a difference depending on the amount invested. The minimum investment is 5000 tax units.

Who are the funds for?

For investors who are willing to have their funds for a long time at the cost of higher growth potential, the SOB World Growth + 1 is determined. Investors with a short investment horizon and the opportunity to invest a smaller amount will most likely invest in the ESPA-S fund hedge fund 2. Those who are somewhere between these two groups can choose SOB Digitln Click

Complete information about the fund’s offer on our market, advice, tips and instructions can be found in the special area FUNDS

1, which represents an acceptable compromise between a long-term investment and an interesting return. If you want to be fully clear in the structure of the fund’s fee, but do not mind a transparent variant of the division of funds between the risks and risks of assets, choose the Max World Guaranteed Fund. The minimum guarantee is only the invested capital, when effective realokovm portfolios can invest interesting results. A special group of HSBC funds, which are intended mainly for investors, is based on many years of experience and good results of the company and are willing to invest the proceeds in foreign currency.

Alternative lkav

HVB offers a special group of hedged instruments on our market, structured bonds. Their similarity with hedge funds leads to the proposed minimum value of the deposit, respectively fixed income and thus participation in the development of global stock markets. Maturity of these bonds bv 5 years, denominations are in dollars or euros. The last offer was issued in Czech crowns. The minimum initial investment is $ 200 (euro), or 50,000 K. The yield on these bonds depends on the performance of the index. At present, there are no changes in the company’s offer (the last issue of koruna bonds could be purchased until August 6, 2004), but in the future we can expect them due to their popularity.

Overall, hedge funds are intended for conservative investors and we cannot expect exorbitant returns from them. For this group of investors, the minimum real income may not be as important as the fact that their funds will remain safe from nominal devaluation over time. These investors will certainly find these instruments, as evidenced by their popularity among domestic investors and, last but not least, the growing supply.

Do you have experience with investing in hedge funds? Do you think it is appropriate to invest in hedge funds or in “classic” mutual funds? Dark on your nzory.

Heath IM Provement