NEW YORK, NY (HEDGECO.NET) – Refco Securities, LLC (�RSL�) announced that it has commenced the sale and distribution of the Refco Diversified Alpha Notes � USD I (the �Notes�). The principalprotected Notes are 10-year, US dollar denominated, euro Medium Term Notes guaranteed by Soci�t� G�n�rale and, at maturity, will provide a minimum of 105% of the initial investment. The performanceof the Notes are linked to the S&P Hedge Fund Index and the Refco Advantage Multi Manager Fund � Futures Series I (the �Advantage Fund�), managed by Refco Alternative Investments, LLC (�RAI�), adivision of REFCO Group Ltd., LLC (�REFCO�), that develops alternative investment products. Standard & Poor�s is the leading provider of independent investment research, ratings and indices.
The Note is designed to capture upside movements while protecting shareholder value against any drop through a broad allocation to over 50 alternative funds representing 9 different strategies. Up to 50% of the annual positive performance will be locked-in to better ensure investors with continuing positive returns. This profit lock-in feature can substantially increase the amount guaranteed at maturity. Monthly liquidity is offered throughout the life of the Note, with transparent valuations available on the secondary markets and net asset values made available on Reuters, Bloomberg and the Internet.
The Notes will be offered for sale to investors in Latin America and Europe, but are not available for sale to investors located in the United States or U.S. persons under the securities laws of the United States. The distributor for the Notes is RSL, the broker dealer subsidiary of REFCO. According to Brian Clarke, Head of Sales for the Americas, the Notes will be sold to sophisticated investors capable of appreciating the nature of risks that are inherent to alternative investments and structured products.
�RAI has optimized the allocation between the S&P Hedge Fund Index and the Refco Advantage Multi Manager Fund – Futures Series I to provide investors with the potential for high performance returns while significantly lowering the volatility usually provided in similar structures,� said Mr. Clarke.
The S&P Hedge Fund Index offers investors an investable benchmark that is representative of the broad range of major strategies that hedge funds employ. The index has 40 constituents divided into three sub-indices: S&P Arbitrage Index, S&P Event-Driven Index and S&P Directional/Tactical Index, which in turn represent a total of nine specific strategies. These strategies include: Equity Market Neutral, Fixed Income Arbitrage, Convertible Arbitrage, Merger Arbitrage, Distressed, Special Situations, Equity Long/Short, Managed Futures and Macro. The strategies are equally weighted to ensure well-rounded representation of hedge fund investment approaches and to avoid overrepresentation of currently popular strategies.
Established in 1864, Soci�t� G�n�rale Group (�Group�) is among the largest banks in the world. Through its global network of 500 offices in over 75 countries, the Group maintains relationships with 500 multinational industrial and services group, 4,000 institutional investors and 1,300 financial institutions.
Standard & Poor’s, a division of The McGraw-Hill Companies (NYSE:MHP), is the world’s foremost provider of independent credit ratings, indices, risk evaluation, investment research, data and valuations. With 5000 employees located in 20 countries, Standard & Poor’s is an essential part of the world’s financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit www.standardandpoors.com.
RAI is emerging as a leading force in the development and distribution of alternative investment products globally. In its first two years, RAI has built and placed over 12 funds or structures and raised over $850 million in assets.
REFCO is a diversified financial services organization with operations in 14 countries and over 3,000 employees worldwide. Through its worldwide subsidiaries, REFCO is among the most active members of futures exchanges around the world, a major broker of cash market products and an asset manager in traditional and alternative products. REFCO subsidiaries are also clearing members of all principal U.S. and international futures exchanges.
# # # For further information call: Brian Clarke
Head of Sales – Americas
Refco Alternative Investments, LLC
One World Financial Center
200 Liberty Street-Tower A
New York, NY 10281-1094
+1-212-693-3944 (office)
+1-212-693-3941 (fax)
+1-860-796-2888 (mobile)
bclarke@refco.com
