BAHRAIN, 14 December 2006 — Investcorp, a global asset manager specializing in alternative investments, has announced the offering of Investcorp Crescendo Series 1 redeemable shares, an innovative structured investment opportunity, which allows investors to participate in Investcorp’s flagship fund, the Investcorp Balanced Fund, with additional features designed to protect capital and enhance return profile.
The shares have four attractive and innovative product features:
• Targeted return of 12-14 percent per annum with annualized volatility of 7-10 percent over the life of the fund, which is expected to mature in Dec. 2013.
• Investors will benefit from capital protection at maturity, that is they will receive at final redemption a minimum payback of 100 percent of the purchase price paid.
• A profit lock-in feature, which gives the investor the potential of an increased amount of capital protection at maturity; each 10 percent increase in the net asset value of the shares increases the capital protection by 5 percent, based on an initial threshold of 120 percent.
• A special oil-linked feature, which will allow investors to benefit from a potential weakening in the oil price, by paying two potential bonus dividends of up to 7 percent at the end of each of the first two years.
Ibrahim Gharghour, managing director and co-head of the Investcorp Hedge Funds program, said: “The combination of capital protection, controlled volatility and the profit lock-in feature, as well as the potential bonus dividends, make Investcorp Crescendo Series I an attractive opportunity for investors looking for appropriate hedge fund exposure.”
Deepak Gurnani, managing director and co-head of the Investcorp Hedge Funds program, said: “We’re meeting considerable interest from our clients across the region, many of whom are of course familiar with Investcorp Balanced Fund’s strong, consistent performance.”