GERMANY/AUSTRIA – Pensionskassen and insurance companies will benefit from participation certificates in alternative investments, according to HVB Alternatives, which has been the first to launch these products in Germany.

In Austria, Vienna-based HVB Alternative Financial Products in launching two participating certificates.

Alternative investments, such as hedge funds, are offered to institutional clients in three portfolios according to their chosen risk profile. HVB describes the investment style of the current portfolios as ‘non-directional’ and provides an average yield of 3.5% above Euribor.

A basket of alternative investments is to be established whose value will be measured in a new index called the HVB Alternative Non Directional Index

Two participating certificates and two warrants were issued with a total subscription volume of up to e1bn and all products will be listed on the Frankfurt Stock Exchange.

Melanie-Karen Renner, of HVB in Munich, says the advantages of the products come from supervisory and tax aspects for institutional clients who come under the financial supervisory authorities in Germany and Austria. “They were set up to meet their needs ,” she says.

HVB Alternatives is part of the Bayerische Hypo & Vereinsbank.

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