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James Caan Closes Investment Funds

Fri, 08 Jun 2012 15:17:58 GMT

The cost of creating and operating traditional investment funds has become so restrictive that a number of investment funds have closed their doors and are returning capital to investors as the cost of compliance, regulation and other commitments means such arrangements cease to offer a competitive rate of return.

Insynergy Closes Investment Funds

One such fund operator is Insynergy Investment Management, backed by BBC Dragons Den Investor James Caan, which will close its range of investment funds and repositions its business.

Insynergy, a boutique fund manager which opened its doors in 2009 with Caan taking the helm as Chairman, has told press that it will return funds to investors in its Absolute India, Absolute China and New World Equity Income funds, subject to approval by shareholders.

The company also said that assets held in its Insynergy Odey fund will be transferred to another product with the same investment strategy, and will continue to have Crispin Odey fund manager.

Spike Hughes, Insynergy’s founder and Chief Executive said that the firm would concentrate on promoting and distributing existing funds through the issue of new shares in the vehicles, and will no longer participate in the increasingly expensive and cost-prohibitive area of fund manufacturing.

According to Hughes, “‘We share the same pressures as many of our competitors, carrying the full operational, compliance and regulatory costs of building and administering our funds – and in a world where the focus is increasingly on cost, there is, for those operating an outsourced model, less “value add” in building and administering their own funds.’

He continued, ‘Going forward, we are examining both re-positioning our strategy and a new business structure to focus our resources in the area where we believe we will enjoy most success, and create most value – marketing and distributing exciting investment propositions.’

Mr Hughes went on to say that Insynergy will work to identify fund managers with a proven track record of good performance, and who are looking to raise capital through to the UK retail, discretionary and stockbroker markets. Former Dragons’ Den star Caan chairs the firm’s management team, which comprises ex-Skandia veteran Jim Roberts and Brett Williams, who was previously chief executive of Cofunds.

In the current investing climate, defined mostly by volatile equity markets and poor returns on cash deposits, Investors are seeking out alternative investments capable of delivering returns that share only small, or sometimes negative correlations with the performance of traditional equity market investments, and this restrictive environment prevent access to many opportunities for the average Investor, and where access is freely available, the high cost of establishing and operating traditional investment funds means returns are diluted to the point that they do not reflect the added risks often involved in more exotic investments.

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