9 Jun 2010
Galaxy Asset Management has announced that it has chosen Merchant Capital to help launch a UCITS version of its successful Galaxy China Opportunities Fund.
Subject to regulatory approval, the UCITS fund is expecting to launch in July, with a target of approximately $500 million in assets under management. The fund will initially be aimed at institutional and high net-worth investors in Europe and Asia, with a minimum subscription of 100,000.
The fund will be based on Galaxys original Cayman Islands-domiciled fund, called the Galaxy China Opportunities Fund, which invests in the Greater China markets of mainland China, Hong Kong and Taiwan. It focuses on four key strategies: position-taking (alpha generation by stock/sector picking, both long and short); special situations (IPOs, M&A, structural opportunities, reverse takeover, and asset injection); long/short (hedged opportunities); and tactical trading (futures & options and arbitrage). The fund has successfully completed a feasibility study undertaken by the Merchant Capital team and its partners, with the strategy comfortably fitting within UCITS guidelines.
The fund is idea-driven, typically holding around 50 stocks at any one time, excluding positions in arbitrage activities. The strategy employs both a top-down and bottom-up approach, reinforced by technical analysis and market intelligence, and is invested predominantly in mid- and large-cap opportunities in the markets described above.
Joe Chan and Johnson Cheung will act as advisors to the UCITS fund under the Merchant Capital umbrella. Between them they have over 40 years of combined experience in financial markets. Previously, Chan worked for Morgan Stanley Europe where he was appointed managing director in 1993 and served on the board of advisors to the Morgan Stanley Fixed Income Fund. In 1995 he was reassigned to Morgan Stanleys Hong Kong office where he headed non-Japan Asia equities trading and risk management. In 1996 he left Morgan Stanley to form Galaxy Asset Management.
Cheung, formerly of Goldman Sachs, joined Galaxy Asset Management in 2007 and became its managing director, focusing on portfolio management and research.
Subject to regulatory approval, the UCITS fund is expecting to launch in July, with a target of approximately $500 million in assets under management. The fund will initially be aimed at institutional and high net-worth investors in Europe and Asia, with a minimum subscription of 100,000.
The fund will be based on Galaxys original Cayman Islands-domiciled fund, called the Galaxy China Opportunities Fund, which invests in the Greater China markets of mainland China, Hong Kong and Taiwan. It focuses on four key strategies: position-taking (alpha generation by stock/sector picking, both long and short); special situations (IPOs, M&A, structural opportunities, reverse takeover, and asset injection); long/short (hedged opportunities); and tactical trading (futures & options and arbitrage). The fund has successfully completed a feasibility study undertaken by the Merchant Capital team and its partners, with the strategy comfortably fitting within UCITS guidelines.
The fund is idea-driven, typically holding around 50 stocks at any one time, excluding positions in arbitrage activities. The strategy employs both a top-down and bottom-up approach, reinforced by technical analysis and market intelligence, and is invested predominantly in mid- and large-cap opportunities in the markets described above.
Joe Chan and Johnson Cheung will act as advisors to the UCITS fund under the Merchant Capital umbrella. Between them they have over 40 years of combined experience in financial markets. Previously, Chan worked for Morgan Stanley Europe where he was appointed managing director in 1993 and served on the board of advisors to the Morgan Stanley Fixed Income Fund. In 1995 he was reassigned to Morgan Stanleys Hong Kong office where he headed non-Japan Asia equities trading and risk management. In 1996 he left Morgan Stanley to form Galaxy Asset Management.
Cheung, formerly of Goldman Sachs, joined Galaxy Asset Management in 2007 and became its managing director, focusing on portfolio management and research.
George Cadbury, Director of Funds at Merchant Capital, said: "Including the Galaxy China Opportunities Fund in our UCITS umbrella demonstrates how we can take an existing fund and ensure its adherence to the transparency, liquidity, and overall investor friendliness' necessary for a UCITS structure. We are excited that Galaxy, with their strong track record, has chosen Merchant Capital to assist with their move into the UCITS market."
Commenting on the new relationship, Chan of Galaxy Asset Management, added: "We are delighted that Merchant Capital will be our partner for the launch of our first UCITS III-compliant fund. We were attracted to the speed with which the firm can bring the product to market and that we have the freedom to brand the product ourselves."
