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Wednesday, September 18, 2019

Pro-Hedge Capital Preservation Fund launched with "No Fee Guarantee"


Date: Wednesday, September 1, 2004

New investment product is first in North America to guarantee positive quarterly returns or no management fee is charged. New G.I.S. Series 1 note also introduced with $2,500 minimum and 100% principal guarantee. TORONTO, Sept. 1 /CNW/ - Pro-Hedge Funds Inc. today announced an industry first that makes Pro-Hedge so accountable for fund performance that they are guaranteeing no management fees will be charged on the new Pro-Hedge Capital Preservation Funds in any quarter that results end up in the red. Not only is this a first for the hedge fund business, it's a first in any kind of fund business, mutual or otherwise. In an environment that usually sees fees raised more often than they're reduced - or removed in the Pro-Hedge case, pending performance - the No-Fee Guarantee may distinguish Pro-Hedge from its peers. "This is simply an excellent investment opportunity for Canadians to access a fund with a nine-year track record of 13% per year with only five down months," said Stuart McKinnon, CEO and President of Pro-Hedge Funds Inc. "This kind of annualized performance is what gives us the confidence to offer the No-Fee Guarantee, and should definitely be of interest to any prudent long-term investor." The Pro-Hedge Capital Preservation Fund is a low-risk, multi-strategy, multi-manager Fund of Funds consisting of eight styles and 25 managers that provides a true alternative investment approach, avoiding equity directional managers. Volatility is anticipated to be less than one fifth (1/5th) that of the S & P 500. The Pro-Hedge Capital Preservation Fund and its significant other, the Pro-Hedge Capital Preservation Plus Fund both come with the Pro-Hedge No-Fee Guarantee. The difference between the two funds is essentially the leverage available in the Plus fund, giving investors 200 per cent exposure to the Ontario Partners Fund. Both products are fully RSP-eligible. "The bottom line with our Capital Preservation Fund is just what the name says: preserving investor capital through low-risk performance potential derived from a diversified basket of arbitrage-style hedge fund investments uncorrelated to stock or bond markets," said McKinnon. "Most important, it truly aligns management and investor interests in the long-term attainment of positive results." Minimum investment for qualified investors in both funds is $5,000. The annual management fee is 1.5 per cent or .375 per quarter - but only if fund performance remains positive during that quarter. The Ontario Partners Fund was initially established by the Chicago-based Mansur Capital Corporation to conservatively manage the firm's capital using truly market neutral strategies. Minimum investment for U.S. investors in the Mansur Ontario Partners fund is US$1 million. Canadian investors can access the investment expertise of Mansur Capital Corporation ONLY through Pro-Hedge Funds. NEW GIS Series 1 ---------------- Pro-Hedge also today announced the launch of the Guaranteed Investment Solutions(TM) Series 1, designed to provide higher return potential than traditional GICs or bonds. This follows hard on the heels of three similar Pro-Hedge protected note products previously launched. All feature a minimum investment of $2,500 and a 100% principal guarantee. The G.I.S. Series 1 principal guarantee at maturity is offered through BNP Paribas (Canada), a subsidiary of BNP Paribas, one of the world's Top Ten largest banks. It will initially be allocated 80% to the Ontario Partners Fund and 20% to the Princeton Leveraged Fund L.P., a multi-advisor, multi-strategy futures fund offered and managed solely in accordance with the investment philosophy of the Princeton, New Jersey-based 6800 Capital Group. Canadian investors can access the expertise of 6800 Capital Group ONLY through Pro-Hedge Funds. The Princeton fund was recently cited by the New York Times as the third- best (No. 3) hedge fund in the United States in terms of five-year performance. Pro-Hedge Funds Inc. brings together some of the world's leading investment managers to create unique investment products for Canadians. Our investment philosophy emphasizes capital preservation combined with proven strategies that have produced consistent long-term returns regardless of market conditions. For more information, please visit www.pro-hedge.com For further information: David Holmes, (416) 628-5605, dholmes@holmesmark.com