PRIVALTO UK LAUNCHES PRIVALTO MILLENIUM TRACKER FUND
London – Privalto UK, part of BNP Paribas, is pleased to announce the launch of the Privalto Millenium Tracker Fund (the “Fund”). This Fund*, part of Privalto UK’s UCITS III OEIC range, will offer UK investors a cost efficient way to benefit from an innovative quantitative absolute return strategy that, in effect, combines active and passive index management. The launch date for the Fund is 5th May 2009.
Sisouphan Tran, Head of Privalto UK said:
“The success of our Stabiliser capital protected funds in 2008 has prompted investor demands for a “capital at risk” version, permitting them full access to the underlying absolute return strategy. Investors can take advantage of all the benefits of passive management – low cost, transparency and easy access – whilst retaining exposure to the potential rewards of effective, dynamic, quantitative asset management. The fund has been designed to offer alpha generation and low correlation not only with traditional markets but also with traditional absolute return products and hedge funds.”
The Fund will be linked to the performance of The BNP Paribas Millenium 10 Europe Series 3 (Sterling Hedged) Total Return Index (“Millenium Index”). The Millenium Index is diversified across a broad range of liquid assets including US, European, Asian and Japanese equities, commodities, real estate and foreign exchange. With the flexibility to short many of these assets and capture market trends, it offers the potential to perform in both rising and falling markets. This strategy that incorporates strict risk-control, rationalised and transparent asset allocation has demonstrated its effectiveness over the recent past, up over 2% in 2009 as of 21 April 2009 and over 3% in 2008.
The Fund will offer daily liquidity with dealing at Net Asset Value and no exit fees or bid-offer spread. The Fund is backed by BNP Paribas, one of the six strongest banks in the world according to Standard & Poor’s. Credit risk to BNP Paribas is mitigated by the posting of G7 AAA bonds as collateral. The Fund offers two share classes to suit different business models. The Fund will be available on all major platforms.
Notes to Editors
*Full name: IFSL Privalto Millenium Tracker Fund
§ Absolute return vehicle providing exclusive access to the BNP Paribas Millennium 10 Series 3 (Sterling Hedged) Total Return Index
§ No capital protection
§ Initial offer price 100p
§ UK open ended investment company (OEIC) regulated by FSA
§ Eligible for ISAs, SSAS, SIPPs Offshore Bonds
§ Authorised Corporate Director: IFSL – a 100%subsidiary of BNP Paribas
§ Daily liquidity with dealing at NAV and no exit fees or bid-offer spread
§ Available on Cofunds, Transact, Funds Direct , Raymond James
§ Two charging structures:
§ § Class A – (Retail)
o Charges: initial 4% and annual 1.5%
o Commission: (paid out of charges): initial up to 3% and annual trail 0.5%
§ § Class B (Institutional)
o Charges: initial 1% and annual 0.75%
o Commission: none
§ Minimum investment £1,000 for Class A and £1,000 for Class B
BNP Paribas Privalto UK
BNP Paribas Privalto UK (www.privalto.co.uk) is a range of innovative investments designed for intermediaries across Europe. Privalto UK will bring a new generation of structured OEIC funds to UK advisers and portfolio managers. In addition to offering innovative investment themes, the funds will benefit from high levels of liquidity, transparency and accessibility on major fund supermarkets and life and pension platforms.
About BNP Paribas
BNP Paribas (www.bnpparibas.com) is a European leader in global banking and financial services and is one of the 6 strongest banks in the world according to Standard & Poor’s. The group is present in 85 countries, with more than 173,000 employees, including 132,700 in Europe. The group holds key positions in three major activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. Present throughout Europe in all of its business lines, the bank’s two domestic markets in retail banking are France and Italy. BNP Paribas also has a significant presence in the United States and strong positions in Asia and the emerging markets.
Ilias Catsaros, Corporate Communications, BNP Paribas
Tel: 020 7595 2215