Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:New DB Fund Opens Possibilities Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, September 23, 2002

New DB Fund Opens Possibilities

by: Sean Hanna, Editor in Chief

Deutche Bank has successfully registered a new fund with the Securities and Exchange Commission that offers hedge fund investments to investors. The SEC approved the structure of the fund last week. That structure and the compromises that Deutsche made with the SEC may point to a model that can be used by other fund shops.

The DB Absolute Return Strategies fund will be a closed-end fund-of-funds investing in hedge funds. Initially, Deutsche was hoping to offer the fund on a retail basis. The SEC, though, refused to O.K. a fund with that type of structure.

Deutsche responded to the SEC concerns by adding provisions to the fund limiting its distribution to qualified investors. The definition of the qualified investor is the same as that used by the hedge funds themselves (a net worth in excess of $1 million or income of $200,000, or more, in the past two years). The fund will also carry a minimum initial investment of $50,000.

One advantage of registering the fund for Deutsche is that unlike hedge funds, the registered fund will not be limited in the number of shareholders it sells to. Deutsche will also not face the marketing restrictions on the fund that hedge funds face.

This type of structure may therefore be popular with fund firms seeking alternative products that are able to leverage their distribution capabilities. The funds, if they catch on, may also enable fund distributors to act as marketing and distribution arms of hedge funds.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use