Gresham US Accelerator fund outperforms amidst volatile market conditions
24 September 2007
Kleinwort Benson, the provider of banking and financial services to corporate and private clients in the UK and Channel Islands, and Dresdner Kleinwort, the investment bank, are pleased to announce the upcoming rollover of the Gresham US Accelerator Index Fund, a subfund of Gresham Defined Funds, an Open-Ended Investment Company (OEIC) authorised by the FSA. The rollover will allow new investors to enter the fund.
Since its launch in October 2005, the Gresham US Accelerator fund has achieved an annualised return of more than 13%, making it the fifth best performing US equity fund in the UK market, out of 474 funds*. In addition, it has been in the top quartile over three, six and twelve months, as well as in the two years since its launch.
Unlike traditional mutual funds, the Gresham US Accelerator fund has been designed with a defined return profile, giving investors an allocation tool that will outperform the relevant benchmark - the S&P 500 index - in most likely scenarios. This is achieved by offering enhanced participation: the fund will give an upside of 126% of the first 12% of growth in the S&P 500 index during the one year period to 15 October 2007, while tracking any falls in the index exactly. If current market conditions persist until the roll in October, the participation rate for the following year will be substantially higher, potentially allowing the fund to outperform by an even greater degree than already achieved.
The fund is derivatives-based and combines three different S&P 500 options. This unique structure of the fund enables the manager to roll into a similar product at the end of the one-year investment period. Shareholders therefore benefit from the flexibility to realise gains when they choose, rather than on the fixed maturity date of the product.
"Investors today are seeking innovative and flexible solutions. The Gresham US Accelerator Index Fund has been designed for investors who require a tactical allocation tool which will outperform the benchmark index under a number of likely scenarios," explains Andrew Halford, Head of Structured Products at Kleinwort Benson, the investment manager of the fund.
The Gresham Defined Funds platform was introduced by Kleinwort Benson and Dresdner Kleinwort in autumn 2005, allowing a series of structured products to be created for institutional and asset management clients based on a wide variety of asset classes.
Press enquiries: Rachel Butler +44 20 3207 7239