Bringing you live news and features since 2006 

Barclays Capital announces note linked to fund of hedge funds


Barclays Capital, the investment banking division of Barclays Bank, has announced plans to launch a note linked to the US Opportunities fund, a US-focused equity long/short fund of hedge f

Barclays Capital, the investment banking division of Barclays Bank, has announced plans to launch a note linked to the US Opportunities fund, a US-focused equity long/short fund of hedge funds managed by Optimal Investment Services, a subsidiary of Spain’s Banco Santander.

The note, dubbed Simple, will give investors access to Optimal’s expertise in US hedge fund managers of all equity-based styles – trading, equity hedge, special situations and sector specialists. The USD610m fund of funds is run by New York-based senior portfolio manager Balkir Zihnali, who has ten years of experience in hedge funds.

The Barclays Capital note is aimed at discretionary private client managers and fund managers in the UK. Performance is linked to the Optimal US Opportunities Ireland GBP class, which has a track record dating back to 2002. The fund, which takes a concentrated approach, is currently the only equity long/short fund of funds available via a Barclays’ note.

According to Barclays Capital, the note provides investors with exposure to the performance of Optimal US Opportunities, an equity replacement product with defensive exposure to US equity markets. If investors are subject to UK tax, gains on the note are expected to be taxable as capital gains, and the note is available for PEP, Isa, Ssas and Sipp investment

Daily liquidity is provided by a third party, with liquidity in small sizes available on a matched basis under normal market conditions, a potential enhancement compared with the underlying fund liquidity.

‘This is the latest of a successful and growing number of launches of hedge fund-linked notes,’ says Alex Robinson, head of Barclays Capital Investor Solutions.

Ben Whitfield, senior vice-president of business development for Santander in London with responsibility for distribution of Optimal’s products in northern Europe, adds: ‘We are delighted to be the first to offer UK private client managers and wealth managers a US equity long/short fund of funds in note form. In our view, Simple offers the only viable structured alternative to a closed-ended fund in the UK.’

Simple is a medium-term note issued from a Barclays Bank structured note programme. The bond is AA-rated, unsecured, unsubordinated, and ranks equally with all other bondholders.
The bond will have a 10-year-term and the value will exactly match the value of the Optimal fund. The note is not considered a derivative and so can be held within portfolios as a normal transferable security.

Optimal Investment Service has its main office in Geneva, with an affiliate in Madrid, and offices in London, New York, Singapore and Tokyo. It manages USD9.4bn in a combination of single-strategy, multi-strategy and discretionary funds of hedge fund, and has been analysing hedge funds in the US for the past 10 years. Barclays Capital is the investment banking division of Barclays Bank, which has an AA long-term credit rating and a balance sheet of more than GBP1trn.

Latest News

News came last night from the US that the SEC has approved CBOE’s proposal to list and trade VanEck’s spot..
Irish domiciled funds surpassed EUR4.3 trillion AuM (Assets under Management) at end-March 2024, a 15 per cent increase in net..
European white label ETF platform, HANetf, has announced its total assets under management (AUM) has now exceeded USD4.31 billion...
New research from European ETF provider Tabula Investment Management shows investors are expecting improvements in ESG from the gold mining..

Related Articles

Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by