12
fund nEWS
Quantum and
Nucleus join
forces for Lux
Sicav product
BY hELEN BurGGrAf
Quantum Group and
Nucleus Euro-Advisers are
launching a joint Luxembourg-regulated
and domiciled
fund that will
invest in the European
insurance sector.
The open-ended Sicav
will invest primarily in
bonds, convertible bonds
and notes issued by small
and mid-cap insurers, reinsurers,
brokers and
underwriters.
Those launching the
Nucleus Assurance Fund 1
said they expect its investors
to benefit from a trend
among European governments
to privatise their
pension and health systems,
as well as from growing
longevity, which is
seen as obliging individuals
and their governments
to invest more in private
pension plans, health insurance
and critical illness
insurance.
Quantum Group is a
Liechtenstein-based, pan-
European insurance company,
while Nucleus Euro-
Advisers is based in
Luxembourg and is an
association of European
intermediaries.
The product will be a
sub-fund on the Luxembourg-based
KMG Sicav
SIF open-architecture fund
platform.
www.kmgsicavif.com
www.nea.lu
fund factS
Name: Nucleus Assurance 1
Manager: Peter Goebel
Domicile: Luxembourg
Min investment: €20,000 for
“well informed” investors,
€125,000 retail
Annual charge: 1%
Launch date: 29 Apr ’09
Target return: 250 bps above
ECB base rate
Luxembourg fund industry
hit by historic drop in AUM
BY DANiEL JuDGE
Assets under management
in Luxembourg funds
dropped for the first time
in 2008, according to data
provider Lipper.
The firm’s 15th annual
KEy findingS
BY GArY shEPhErD
Castlestone has unveiled its
Collection of Modern Art
Fund, an eight-year closedended
vehicle opening to
investors in May.
The fund, domiciled in
the British Virgin Islands,
will be managed by Angus
Murray, who has been
advising on modern art
since 2000, and supported
by representatives from auction
houses and dealers, as
well as artists themselves.
It is being pre-marketed
in the UK, Europe, Asia,
South America and the
Middle East and has already
secured $25m investment
plus a further $25m in
agreed obligations.
Minimum investment
starts at $10,000 or £10,000
and the fund can only be
accessed through professional
intermediaries.
Monthly liquidity is available,
subject to a dilution
adjustment for early
redemption.
review of the country’s
investment funds industry
showed a decline of almost
30% on 2007, from just
over $3trn to $2.1trn.
With only a handful of
exceptions, assets fell in
most asset classes and fund
n The number of funds rose from 10,971 to 12,102 – an increase
of just over 10%.
n JPMorgan Bank maintained its position as the largest fund
administrator by total net assets ($300.7bn), with RBC Dexia
and Fastnet in second and third places.
n For professional firms, PricewaterhouseCoopers sustains its
dominance in auditing 5,337 funds. Among legal advisers,
Arendt & Medernach was just ahead of Elvinger Hoss & Prussen
by number of funds, but Elvinger Hoss & Prussen has maintained
its leading market share by total net assets.
n Specialised Investment Funds (SIFs) contributed $179.6 bn in
1,712 funds. This is slightly down on last year’s total ($205.4bn).
structures. ETFs and money
market funds were among
the few areas to experience
asset growth. The
latter rose by 16% to
$561.9bn and ETFs by 59%
to $32.0bn.
Ed Moisson, director of
fiduciary operations at
Lipper, said: “Half of the
decline in fund assets
took place in September
and October, highlighting
that the financial crisis
was the key factor affecting
the industry.
“Around 80% of the
overall asset fall was due to
market performance rather
than investor withdrawals,
providing some hope that
as the markets recover, so
too will the Grand Duchy’s
fund assets.”
Castlestone rolls out BVI-based closedended
offering investment in modern art
aMR art index – 30-year performance
25,000
20,000
15,000
10,000
5,000
AMR Art 100 Index
0
’76 ’79 ’82 ’85 ’88 ’91 ’94 ’97 ’00 ’03 ’06 ’09
1 Jan ’76 – 1 Jan ’09. Source: AMR Art
The annual manage- artists within the AMR Art
ment charge is 1%, and it 100 Index who have an
carries a 20% performance established history of strong
fee that is subject to a loss secondary-market prices –
carry-forward provision. this includes contemporary
Murray will seek to UK artists such as Banksy
create a diversified collec- and Damien Hirst.
tion of museum-quality Research by Mei and
modern art from a variety Moses has shown that
of genres, including impres- art gave investors an aversionist,
post-war, contemage annual return of 7.7%
porary, sculpture, urban art a year between 1875
and photography.
and 2000. That figure com-
The fund targets artpares with a return of just
works predominately by 6.6% from equities.
TriAlpha corporate
bond focuses on
absolute return
TriAlpha Investment
Advisors, the Jersey-based
asset management arm of
the Stonehage wealth management
group, is launching
a corporate bond product
that it says will be an
absolute return credit fund
with “a strong capital preservation
emphasis”.
The fund is to be known
as the ACP TriAlpha Global
Credit Fund, reflecting
TriAlpha’s merger with
ACP Partners, currently
under way. When completed,
the combined business
is to be known as
ACP TriAlpha and will be
half owned by Stonehage
and half by ACP.
The new fund will target
a 6% to 8% pa return, with
volatility of less than 4%,
and be managed by Steven
O’Hanlon.
www.trialpha.com
www.stonehage.com
Ashmore Guernsey
vehicle to invest in
emerging markets
Ashmore Investment Management
has launched a
fund investing in illiquid
financial assets in emerging
markets.
The Guernsey-domiciled
Global Consolidation
and Recovery Fund has
been established to maximise
the investment return
from distressed or illiquid
emerging market financial
assets that have been negatively
impacted by the
global financial crisis.
The fund, which will
open quarterly for new
subscriptions, will accept
cash investments and in
specie transfers from institutional
investors of their
own emerging market
financial assets.
Ashmore said the fund
is planned to have a duration
of at least five years
and investors will be able
to exit only after the third
and fourth years, subject to
redemption charges.
INTERNATIONAL ADVISER [www.international-adviser.com] MAy 2009
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