I was buying insurance online the other day, and I found a hedge fund in serendipity, buried in my insurance company (or shall I say financial conglomerate). Look at this and this.
Some specifics on 平安财富鹏远核心一期集合资金信托计划
Hedge Fund? First of all, it is a hedge fund, though they deny it. Hedge funds are well known by the 2/20 (i.e., 1~2% administration fee plus 20% of benchmarked return). This fund charges: 1.5% admin fee, 20% of return, 0.25% keeping fee (?), 1% front load, 5% before-schedule redemption fee. Hedge funds court wealth individual et la, this fund set an entry level of RMB 3 million, so not for little people like me. Is it a hedge fund or not? Why play coy?
Who Handles the Money? If it’s not a hedge fund, it’s a FoF. Notice the listed investment consultant, 鹏远（北京）管理咨询有限公司. I guess it’s very possibly those guys who manage the money, via the hat of the “largest hedgie company,” and they profit-share in some way. I don’t see any reason why they’re here otherwise.
Expected Return. Noticed the return they promised (but not guaranteed)? Expected return 6.5%~10.5%, no upward limits, by investing in share-collateralized financing projects. Umm, I wonder how they can achieve it. Before fees, the required gross return would be 10%~15%, while the PBoC benchmark loan rate is 5.4%. If they leverage up, they’re more a hedge fund.
Investors. They’re open to both individual and institutional investors. The institutional part usually consists pension fund, college endorsement, etc. I wonder who are those ones in China.
No comments:
Post a Comment