Platinum offers hedge funds to Asian investors

Platinum Capital Management, the UK-based international financial investment group, has begun to offer two of its hedge fund products – Platinum Washington and Platinum Capital Protected Income Plus, Class A (Platinum Class A) – to high-net-worth investors in Singapore. The funds are among the first international hedge funds to be approved by the Monetary Authority of Singapore (MAS) under the new hedge fund guidelines published in December last year.

“Asia is rapidly growing in importance for the distribution of alternative investment products to both the institutional and retail sectors,” said Craig Reeves, managing director of Platinum Capital Management. “Arranging representation of Platinum and distribution of Platinum Funds in Singapore (and other parts of the Far East) is one of our core objectives. For two of our funds to be among the first international hedge funds to be approved by MAS is a great honour and a testament to the quality of our fund construction process.”

Launched in September last year, Platinum Washington is a single manager US equity long/short fund with around $30 million worth of assets under management. Last year, the fund achieved a strong performance, with gains of more than 30%.

Platinum Class A, launched in May 2002, is an equity long/short fund of hedge funds investing primarily in the US, with 19 to 21 underlying funds. A return of 100% initial capital is protected by investing in 10-year US Treasury bonds while also allowing the redemption of up to 8% of the original investment every year of the 10-year product life, after the first year. The fund currently has $25 million of assets under management.

Reeves added that while the firm already has an affiliate office in Hong Kong, it is considering opening further affiliated offices in the region.

The fund will be distributed by major Singaporean and foreign banks, a number of independent financial advisors and at least two of the largest Singaporean stockbrokers. A spokesperson for the firm declined to provide names for the local brokers.