CityPress - - Business -

No­vare CIS is the first as­set man­ager to come to the mar­ket with an ap­proved prod­uct, and it will host both retail and qual­i­fied in­vestor hedge funds.

Retail hedge funds will op­er­ate un­der stricter reg­u­la­tions to en­sure in­vestor pro­tec­tion, while qual­i­fied in­vestor hedge funds will be sub­ject to a less strict but fit­ting regulation with a fo­cus on re­port­ing and mon­i­tor­ing po­ten­tial sys­temic risk, as well as ad­e­quate dis­clo­sure to in­vestors.

Eu­gene Vis­agie, head of hedge fund in­vest­ments at No­vare CIS, says the regulation of hedge funds will as­sist in grow­ing in­dus­try as­sets, while gen­er­at­ing op­por­tu­ni­ties to pro­vide al­ter­na­tive in­vest­ment ve­hi­cles to retail in­vestors.

“The two most im­por­tant ben­e­fits of in­clud­ing hedge funds as an ad­di­tional al­ter­na­tive as­set class in an in­vest­ment port­fo­lio are cap­i­tal pro­tec­tion and as­set class di­ver­si­fi­ca­tion,” he says.

Vis­agie says South African hedge funds have been suc­cess­ful in pro­tect­ing cap­i­tal and min­imis­ing draw­downs, re­sult­ing in en­hanced re­turns and lower risk in the over­all port­fo­lio.

“In terms of di­ver­si­fi­ca­tion, hedge funds re­spond dif­fer­ently to mar­ket con­di­tions when com­pared with tra­di­tional as­set classes, re­sult­ing in a low cor­re­la­tion with other as­sets.”

The No­vare May­ibentsha Growth Retail Fund of Hedge Funds aims to achieve mod­er­ate cap­i­tal growth with rea­son­able lev­els of in­come, while keep­ing cap­i­tal preser­va­tion in mind.

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