Vam Funds will launch a five-year capital protected note in conjunction with Nomura Bank International that offers participation in the Vam Managed Funds (Lux) – Driehaus Fund from 1 June 2010.
The note is available in US Dollars only.
The investment objective of the Driehaus Fund is to provide strong capital appreciation, through aggressive growth, over the full investment cycle.
The 90 per cent protected note provides investors with an opportunity to access these high growth returns, combined with an important safety net to limit any negative performance to a maximum loss of ten per cent.
The note delivers an 80 per cent participation rate in the performance of a combination of the Driehaus fund and a reserve asset (similar to cash). This acts to reduce investor exposure to the fund during times of high volatility.
Instead of the static underlying investments normally associated with this type of note, the fund manager will invest in a varying range of sub-funds within the Vam Funds (Lux) stable, from large cap to medium, small and micro cap, international real estate, world growth and emerging markets funds.
Nigel Watson, global sales director at Vam Funds, says: “This is an excellent opportunity for Vam Funds and our investors given the current appetite. There is still a lot of nervousness amongst the investment community; investors are searching for products which will yield returns but are worried about downside exposure. The note, which we are offering exclusively in conjunction with Nomura, has a very clear mandate: investment in the Driehaus Fund whilst offering a 90 per cent guarantee on the capital invested initially.”
