BVI-based GAM Trading II announces new leveraged fund version

The fund GAM Trading II – GBP 1.25XL, domiciled in the British Virgin Islands, enabled investors to benefit from 1.25x leveraged exposure to the performance of GAM Trading II, a portfolio of hedge funds. The underlying funds can trade currencies, fixed income instruments, equities and commodities, and will be able to take long or short positions and use futures and options. Usually the fund is holding 30 to 50 funds, and now it targets absolute returns of 8%-13% per year over three to five-year periods.

The BVI-registered fund invests mainly in systematic trading and global macro funds, but may also include a small allocation to other non-directional strategies. GAM Trading II, managed by the group’s multi-manager team, last year has generated an 8.6% return. Since its inception in 1997, the vehicle has delivered positive returns every year.

GAM head of UK mutual funds Martin Harrison has said in his comments that “the new leveraged fund is designed for investors with a strong positive view of GAM Trading II, who want to enhance their exposure for the same amount of capital. Minimum investment amount is £15,000, with initial charge of 5% and annual management charge of 1.7%.

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