Mon, Feb 24, 2020
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. PE/VC: Venture debt: Is it a loan? Is it equity? Is it an pportunity?, PE, VC investments in India hit all-time high in 2019[more]

    Venture debt: Is it a loan? Is it equity? Is it an pportunity? From Forbes: Venture Capital is usually the default option for fast-growth startups looking for a cash injection, thanks to our willingness to take risks in return for equity, and with no need to pay anything back - at least

  2. Other Voices: Evolution of shrinking hedge fund fees - what do investors and managers need to know?[more]

    By Don Steinbrugge, Founder and CEO, Agecroft Partners (DonSteinbrugge@agecroftpartners.com): Hedge funds fees remain under extreme pressure across the industry. This strong trend is driven by declining return expectations from investors, inc

  3. PE/VC: No handshakes, no deals: Silicon Valley VCs hit pause on China, US private equity funds swoop on UK for cheap deals[more]

    No handshakes, no deals: Silicon Valley VCs hit pause on China From Nikkei: Venture capital companies in Silicon Valley are not taking any chances when it comes to the coronavirus outbreak. "Due to the Coronavirus, No Handshakes Please. Thank You," reads a sign on the office doors of An

  4. COVID-19: Investors track ships, chase rumours to get edge on COVID-19 risks, Coronavirus risk puts the bull run on pause, China was wise to let markets stumble[more]

    Investors track ships, chase rumours to get edge on COVID-19 risks From Reuters: As investors crunch numbers to determine how the coronavirus will hit China's economy, hedge fund manager Nathaniel Polachek has tied much of his outlook to the fate of a ship anchored near Weihai, China.

  5. Bruce Berkowitz is back!, Coatue's new quant fund lost money in the fourth quarter[more]

    Bruce Berkowitz is back! From Institutional Investor: Famed value investor Bruce Berkowitz has hit hard times over the past decade, with big bets on losers like Eddie Lampert's Sears Holdings. In fact, over the past 10 years, his Fairholme Fund's annualized return is only 4.89 percent -