U.K. financial services firm Matrix Group has extended a capital-protected investment product linked to a managed futures fund to allow for an extra GBP10 million (USD17.61 million). The product, named the Ascension Plan, has raised GBP10 million, but Glenn Hamilton, sales manager at Matrix in London, said there was sufficient investor interest to extend capacity.
In the deal, Matrix purchased a call option written on the Winton Trading Strategies Fund with an expiry of June 2011 from BNP Paribas. Hamilton said Matrix is in touch with all major derivative shops in Europe and considers pitches for similar fund-linked products, but it has been pleased with BNP Paribas as a counterparty for the Ascension Plan. The trading strategies fund posted returns of 27% last year and its average annual returns are 22%. Hamilton noted the high performance of the fund is a key reason for the success of Matrix's product, but he also said the firm has noticed a broader investor base, not just restricted to private banking clients, is ready to invest in hedge fund-linked deals. The extended offer closes at the end of the week.
