Speaker 0:
Welcome to SAT V's Fund Fit interview. I'm joined today by Alan Yates, head of distribution at Peregrine Capital. Welcome back, Alan. Thank you very much. So, Alan, you're putting forward peregrines. Pure hedge fund to discuss today. Which type of client would this fund typically be appropriate

Speaker 1:
for? So I thought it would be a good time to chat about pure hedge. Um, just because markets are having a bit of a tough one this month. Uh, and so

Speaker 1:
this is a product that's very different to our high growth fund, which, like the flagship product in that pure hedge, is designed very much for stability, of returns and protection of capital. So I think I mean, the clients that we find that that really enjoy this product are the ones that are looking for, uh, a low risk solution, particularly. I mean, guys like in living annuity, etcetera. Where you've you've done the hard yards, you've you've earned your money over time.

Speaker 1:
And now you're really just looking for those funds to grow at obviously inflation plus type returns, but with as little volatility as possible. Um, and with a big focus on that capital preservation portion so

Speaker 0:
then what type of role would this fund I know you've just mentioned, like with capital preservation? Is there any further, um, role that this fund could play for a Preti or even a post retiree?

Speaker 1:
So So I mean, I think if you look at it over time, the products probably done.

Speaker 1:
I mean, it's very consistent. So if I look at the return profile one year, three year, five year, 10 year, even up to 15, the return profile is kind of between 10 and 12% net a fee. So it's definitely doing CP I plus and and CP I plus 3, +45. Whatever the number might be, Um, but it's it's

Speaker 1:
I would look at it as kind of being a a the the the bedrock kind of banker in the portfolio. You know, it's it's It's the type of fund that if markets have, uh, a big run and are up 30 or 40% for the year, pure hedge is not going to participate in that

Speaker 1:
to any major degree. It's built very much to be an absolute return product with that consistent profile, so I think it's a lovely kind of stable portion of the portfolio so that, you know, if the clients got that in there, they know they're gonna get that that sort of level of return

Speaker 1:
it it gives them the ability, I think, to potentially take a bit of extra risk in the rest of the portfolio, knowing that they've got that kind of solid foundation.

Speaker 0:
OK, so then what would clients or advisers need to take into special consideration if they're looking to include this fund, Um, in their clients portfolio.

Speaker 1:
So I mean, I think it depends obviously on on where they're including it. So if you're including it in, uh, a living annuity or or discretionary money, Um,

Speaker 1:
obviously inclusion could be up to any particular point you want it to be, um, just I mean, one particular point is, is in the pre retirement space. So retirement products, Um, you obviously have to comply with R 28. So there's limitations there in the amount that you can put into any particular hedge product. So this is obviously a hedge fund. Um, and then I think the second thing is just to bear in mind that

Speaker 1:
it is. It's a market neutral fund, so What that means is we're not looking to take a lot of equity market exposure in the product we're not looking to generate to to to capture a lot of beer in the product. Um and so exactly as I referenced earlier, if markets are gonna have a really big run, pure hedge is not going to participate in that.

Speaker 1:
But likewise, if markets have a really tough time, hopefully pure hedge is not going to participate in that either. So so I mean, like I mentioned earlier markets this month down, I think. Sort of six odd percent at the moment. Pure hedge is up. Just close on a percent. That's kind of the return profile we want to generate. It's very slow. Steady? Um, it's not the most exciting product in the portfolio, but I think it is a It's a really good banker for the guys that that that want that.

Speaker 0:
Alan, thank you very much for taking us through the pure hedge fund.

Speaker 1:
Absolute pleasure. Thank you for having me