GAIM Launch New Structured Note

Stephen Harris

24 March 2005

Following on from the success of its first long/short fund of fund note, GAIM Advisors have launched a Long/Short Strategy Series II Principal Protected Note, to satisfy demand, mainly from the private banking sector in Asia and the Middle East. The note has been issued by IXIS Corporate & Investment Bank and is linked to the GAIM Long/Short Equity Fund. At maturity the note will return the higher of the initial investment or 100 per cent of the performance of the underlying investment. The note will also pay a coupon of 3.00 per cent at the end of year one and of 3.50 per cent at the end of year two.This note provides a broad exposure to the equity long/short strategy through investment in approximately 40 of the largest hedge funds within this strategy to reduce volatility and increase potential return. The note’s offering period closes on 13 May 2005. According to GAIM, most clients are using the note as an equity replacement product.