MSS Capital Limitedsays it will later this month launch the FTSEhx Fund SPC, whose constituents will form the basis of the newly announced FTSE Hedge index series. “The FTSEhx Fund SPC has the specific aim of addressing and alleviating investors’ concerns over the lack of liquidity, risk control and opacity within the hedge fund world,” says the company.
FTSE Hedge aims to provide investors with an index series that reflects the risk and return characteristics of the open investable hedge fund universe, and so provide a more accurate and reliable measurement of the global hedge fund market. It is calculated by reference to investments made by The FTSEhx Fund SPC into hedge funds that make up the Index and the latter will include all of the costs and expenses of running the underlying funds.
“The FTSEhx Fund SPC will provide investors with all the benefits typically associated with hedge funds – including low volatility and the potential for outstanding returns – whilst eliminating many of the issues of transparency and risk control,” says Mark Ellis, Director and Co-Founder at MSS. “The FTSEhx Fund SPC charges just 1% p.a. – which covers both investment management and FTSE licence fees. Our belief is that the absolute return to be derived from investing in hedge funds is so strong that there is no justification for paying a performance fee on a fund of funds. We believe the market potential for the Fund is significant and that investors can have great confidence in the FTSE Hedge index series.”