Hntroducing IPB Funds -
SIX OF THE BEST
Hong Kong
on Internet
£3
WHAT'S NewS Issue 4 April 1996
new products
On April 18, the bank's International Private Bankers will
launch six innovative investment funds. What's NewS runs through the half dozen
new instruments designed to suit a wide range of IPB clients.
Fred Huibers
Of the six new funds created by IPB, two
will be grouped under the new Rabobank
Select Funds heading - one global equity
fund and one global bond fund. Designed
for marketing throughout the international
network, they make it possible for
relatively small investors to buy into a
broadly diversified share or bond portfolio
worldwide. Such opportunities are usually
open only to the wealthiest of private
clients.
FUND OF FUNDS
Unlike most mutual funds, which are
based on some underlying basket of assets
such as equities or bonds, the Select Funds
operate on the 'Fund of Funds' principle.
That is to say, instead of investing directly
in a basket of financial instruments, the
investor actually holds a basket of mutual
funds that have been carefully chosen
from any of hundreds of global candidates
on the basis of historical performance and
future market potential.
TAILORED RISK/RETURN PROFILE
For example, at any given time the
Rabobank Select Equity Fund might
include a basket consisting of Fidelity in
the US, Jardine Fleming in Japan,
Henderson in the UK, and so forth. The
»ime holds true on the bond side. By using
ie so-called Personal Investment
Management facility, it is possible to
combine both Select Equity and Bond
funds. This product gives the investor an
option to tailor the risk/return profile
more closely to his or her own
requirements. Both Select Funds are
guilder-denominated, fully hedged against
any currency risk, transparent and selected
according to objective, performance
related criteria. This makes them
particularly attractive in view of the fact
that most financial institutions steer their
clients towards in-house funds, often
regardless of returns.
NETWORK-WIDE MARKETING
The Select Funds will be marketed on a
commission basis from the IPB offices in
Antwerp and Turnhout, Buenos Aires,
Curaqao, Hong Kong, Luxembourg,
Singapore, Zurich, Sao Paulo, Frankfurt
and Guernsey. All are targeted at clients
whose average portfolio size is below the
NLG 1 million mark.
HOLLAND FUND UMBRELLA
Also in mid-April, Rabobank will be
launching a further four investment
options, grouped under its Holland Fund
umbrella, which are aimed at wealthier
clients. These include the Dutch Equity
Fund (investing in Dutch shares); the
Dutch Bond Fund (in Dutch bonds); the
PRIVATE BANKING -
EIGEN FONDSEN
Op 18 april worden 6
nieuwe Rabobank
fondsen geïntroduceerd. Deze fondsen
beleggen in tegenstelling tot de meeste
huisfondsen in zorgvuldig geselecteerde
bestaande fondsen met een goed
rendement. Dit 'fund of funds'principe zorgt
ervoor dat klanten hun risico kunnen
spreiden tegen een over het algemeen
beter rendement. Het gaat om het
Rabobank Select Fund, waaronder het
Select Equity en Select Bond Fund hangen
en het Rabobank Holland Fund, dat bestaat
uit het Dutch Equity Fund, Dutch Bond
Fund, NLG Cash Fund en het BEF Cash Fund.
De vier laatste fondsen richten zich met
name op Nederlanders die zich in België
gevestigd hebben.
As first in the international network, the
Hong Kong branch has linked up
to the World Wide Web. Supported
by Rabofacet Telematica Business
Group,a temporary Web-site has been
created at the Dutch Rabobank homepage
(http://www.rabobank.nl/int/hongkong),
but Hong Kong is already working on its
own home page.This is a pilot project to
explore the opportunities Internet can offer.
The branch sees the creation of its own
Web-site as an additional marketing tooi to
reach customers and prospects. But it will
also improve inter-network Communi
cations through new e-mail facilities. You
can contact Hong Kong branch through its
e-mail address: rabohk@asiaonline.net.
NLG Cash (money market instruments)
Fund; and finally the BEF Cash Fund (for
Belgian franc denominated money market
instruments). All their assets - whether in
bonds,equities and financial instruments -
are top-rated.
SECURE OPTION
The Holland fund is particularly attractive
to a sociological group unique to the
Benelux. These are colloquially known as
the 'NederBelgen' - expatriate Dutch
entrepreneurs who have moved or retired
to Belgium for tax reasons, but who wish
to invest in the security of their reliable
home market. The bank offers them
expert investment selection and
management, backed by the in-house
expertise of the staff economists in Utrecht
as well as the recommendations of IRIS,
the bank's 50-50 joint venture with
Robeco. A Holland Fund investment
offers investors secure and familiar assets,
a freedom from currency risk, and,
because of the fund structure, rather
attractive fiscal advantages. The purchase
costs on all funds is 0.5 percent, except if
the Personal Investment Management
procedure is chosen, (which involves a flat
rate of 0.6 percent per annum), or the
cash funds, (which have no transaction
costs at all).
KEEN INTEREST
Although the six new funds will officially
commence trading in mid-April, they have
been open for subscription since
December. According to Fred Huibers of
the Private Banking and Trust operation,
the interest so far has been 'rather
keen'.
