Our products include both onshore and offshore funds, as well as portfolios set up in managed account format. The wide product range of fund-linked derivatives can be grouped according to the risk of capital invested.

Pass-Through Certificates bear the same risk as direct investment in the underlying fund. Leveraged products involve higher risk and higher targeted return, whereas protected products limit the downside risk of the investment.

Product range risk profile

Protected products: Fund-linked derivatives provide participation in the performance of underlying funds, whilst protecting part or all of initial investment. Benefits include :

• Limited downside on actively managed investments
• Potentially favourable regulatory treatment
• Reduced reputational risk
• Flexibility - possibility to include leverage and modify cash flow profile

Pass-through certificates: Fund-linked derivatives provide securities linked to the performance of an underlying fund or fund of funds. Such pass-through products have no principal protection as they mirror the performance of the underlying fund on a 1-to-1 basis, gross of fees. Benefits include:

• Operationally easy access to fund investments - especially alternative investments
• Increased liquidity
• Possibility of hedging currency risk
• Potentially favourable regulatory treatment

• Reduced reputation risk

Leveraged products:  Provide leveraged participation in the performance of the underlying fund or fund of funds. The typical leverage offered is 2-4 times the initial investment. The maximum loss is limited to the initial investment (limited liability). Typically there is no principal protection with these products. Benefits include:

• Potential yield enhancement
• Limited recourse leverage
• Efficient use of capital and risk budgeting (between asset classes and within a fund of funds portfolio)
• Can be structured in a variety of legal forms