The company said the fund will aim to deliver 10% annual return through investments into a “diversified and international” portfolio of asset-backed corporate bonds, and debt and loan instruments issued by small to medium-sized companies.
It added that the Cayman Islands-domiciled fund will be able to invest into any currency, country or sector in order to “maximise risk adjusted returns and to pursue prudent diversification”.
The fund will be regulated by the Cayman Islands Monetary Authority, and overseen by the company’s fund adviser Michael Young.
It will be released on 15 October, with a recommended investment term of five years or more, as over half of its anticipated holdings have a duration of two to five years, and 20% of longer than five years.
The minimum initial investment into the fund is $100,000, while the minimum additional investment is $50,000.
The company said the fund will have no initial or exit fee, an annual management fee of 1%, and a performance fee of 20% of the fund’s profits above an annual hurdle rate of 10%.
Hypa hopes the fund will contain $50m by its launch, with the intention of eventually attracting inflows in excess of £100m.
Investors will also be offered quarterly, no-fee redemption from the fund, with a required notice period of 90 days.
Young said: “We focused on the needs of wealth managers, whose interests are aligned to investors with respect to fund charges.
“Lower charges mean higher returns, helping the performance of the wealth manager’s portfolio, and therefore the investor.
The company said: “Interest rates are low and are likely to remain so for many years, which has prompted income-seeking investors to find alternative higher yielding solutions.
“The fund meets these needs by providing high income for investors, as well as being diversified over a number of bonds, reducing company specific risk and only asset-backed bonds.”
