Offering for the jittery

By Chris Hutching

Friday 28th March 2003

Absolute Capital business development manager Graham Smith was in New Zealand this week to promote the Australian listing of the company's hedge funds, which have become increasingly popular in recent months.

Mr Smith said he had been talking with financial advisers, brokers and large distribution houses about the funds. He said the biggest challenge facing investment advisers was the disillusionment clients were experiencing in managed funds. Many of the new funds launched in recent months have been variants of hedge funds, with many offering guaranteed return of the initial capital invested in efforts to capture investors cashing up equity funds.

Absolute Capital had seen significant fund inflows from the New Zealand market since launching its retail funds her last year, he said. The Yield Fund had experienced particular success and InvestorWeb, a leading Australian research house, recently issued a "buy" rating for the fund.

"The Yield Strategies Fund is an alternative debt product investing in mortgage securities and collateralised debt securities. The fund is diversified across 50,000 securities, which minimises the impact of any defaults," he said.

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