Commercial Economics Management Unveils Fixed Income Hedge Fund

Jun 11 2010 | 10:27am ET

Commercial Economics Management this month is launching a global long/short fixed income fund that will be managed out of Asia.

The new vehicle, The Economic Time Bond Fund, aims to raise US$150 million for investments  mainly consisting of highly liquid USD investment-grade bonds.

The firm will use its proprietary "Economic Clock" framework, which is "a macro-economic tool for prudent and profitable investment management and strong capital preservation characteristics, which has produced top quartile returns and surpassed comparable investment strategies since 1999," according to the firm. The Economic Clock framework was developed in 1998 by Enzio von Pfeil, founder of the firm.

According to the firm, the objective of the new fund is to achieve superior fixed income returns with a strong focus on capital preservation by building a fund portfolio across geographies, sectors and maturities. There is at least a 75% weighting of investment-grade, highly liquid bonds and a maximum 25% weighting of sub-investment-grade, highly liquid bonds.

Commercial Economics Management will serve as the fund manager, while Aquitaine Investment Advisors will serve as a sub-manager. The Cayman Island domiciled fund charges a 1.5% management fee and a 20% performance fee. There is a minimum investment of $1 million, and it allows for monthly redemptions.

Swiss Fund Services (Hong Kong) serves as the administrator, HSBC Institutional Trust Services (Bermuda) is the custodian, PricewaterhouseCoopers (Hong Kong) is the auditor, and legal consist of Clifford Chance (Hong Kong) and  Maples and Calder (Cayman Islands).

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