Tue, Dec 12, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Principal protected note linked Liquid UCITS Alternative Funds to pay 2x excess return over LIBOR

Monday, June 08, 2015
Opalesque Industry Update - Sky Fund LLC, a regulated US asset management firm, has entered into an index advisory agreement with a European ‘A’ Rated bank by S&P and Fitch Ratings. Sky Fund is the Index Advisor and the bank is the Index Sponsor of a new actively-managed index of liquid alternative UCITS funds called SkyRank Navigator. The index is priced by an independent pricing agent with headquarters in Frankfurt. The index is actively managed by Sky Fund and the bank is issuing a principal protected index linked note.

Sky Fund and the issuing bank have launched a 10-year note that is linked to the performance of the SkyRank Navigator Index. The note pays 2X the performance of the Index, in excess of 3-month libor, 100% principal protected at maturity and has weekly liquidity. The pricing of the index may be accessed using the Bloomberg Symbol, IND1SKYX, and ISIN Code XS1212302670.

The SkyRank System which primarily utilizes a System of Hedge Fund Ratings, a U.S. Patented technology, identifies single funds, funds of funds, and liquid alternative funds that consistently produce high risk adjusted returns over time. Sky Fund's SkyRank System analyzes over 15,000 funds and liquid alternative funds on a continuous basis analyzing which funds are optimal to add and suboptimal to remove from the index in order to produce the highest volatility adjusted performance. “SkyRank was created specifically with pension funds and insurance companies in mind, and I believe if applied universally, it can help to eradicate pension fund shortfalls,” said Joseph Omansky, the founder and CEO of Sky Fund LLC.

The Note will be distributed primarily in two ways to accredited and qualified non U.S. investors. The first is through off-shore life insurance policies in Cayman and Bermuda. The second way is through direct investments from offshore wealth advisors.

The Principal Protected Note is available as a portfolio choice through Red Gate, an innovative life insurance policy. John Chon, CEO of Red Gate Capital said, “Our client base always looks primarily at capital preservation, secondly consistent performance and finally fee transparency. We have been able to achieve all of the above through SkyRank’s innovation of structuring an actively managed UCITS Index with a high participation level and 100% principal protection. We are delighted to have this product as our main portfolio choice for our investment linked insurance policies and to our balance sheet clients.” Red Gate Financial is a life insurance and risk management company which creates products for high net worth individuals, corporates and insurance companies.

Peter Urbani, a portfolio manager at Sky Fund also commented on the release, “The Index is designed to have low volatilty and for the past three and half years has exhibited volatility below that of Barclays Aggregate Treasury Bond Index. Products linked to the index are appropriate for institutions seeking out low volatility, stable performing investments, like pensions, insurance companies, endowments and ultra high net worth investors who are interested in preserving their capital while growing it in a stable, predictable manner and those who want no risk of capital loss."

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Mediobanca acquires majority stakes in Swiss hedge fund[more]

    Komfie Manalo, Opalesque Asia: Listed diversified banking group Mediobanca SpA said it has acquired a majority stake in Geneva-based hedge fund firm RAM Active Investments SA (RAM AI), an active and alternative asset manager offering a range of act

  2. Launches - Ex-BlueCrest team to open over $200m hedge fund, Greg Coffey, a hedge fund star who retired at 41, is eyeing a comeback, Brevan Howard plans Greek funds as bond rally signals revival[more]

    Ex-BlueCrest team to open over $200m hedge fund From Bloomberg.com: A team of traders who left BlueCrest Capital Management earlier this year raised more than $200 million for their own hedge fund focused on Asian stocks, according to a person familiar with the matter. Ovata Capital Manag

  3. North America - Miami could attract hedge funds if SALT deductions axed[more]

    From Law360.com: For years, inertia has been Nitin Motwani's greatest foe in his attempts to lure hedge fund owners in the northeast to Miami, which he has pitched as a tropical low-tax paradise. But with the Republican tax bill proposing to eliminate deductions for state and local taxes, he's sensi

  4. Northleaf Capital Partners closes debut private credit fund on $670M[more]

    Bailey McCann, Opalesque New York: Northleaf Capital Partners has closed its debut private credit fund - Northleaf Private Credit I - on $670 million. The vehicle will invest in private credit transactions in Europe and North America, with a primary focus on lending to private equity-backed compa

  5. Opalesque Exclusive: Credit Suisse Asset Management's NEXT Investors leads $6M Series A round for LUX Technology and Services[more]

    Bailey McCann, Opalesque New York: Credit Suisse Asset Management's NEXT Investors has led a $6 million Series A funding round for LUX Technology and Services, a business and technology solutions provider for the alternative assets industry. The investment will be used to fuel growth of Trans