Regular features from March 2006 123rd Issue

Keeping it Simple

100,000 in -10years later -390,000 out

That's a good return is it not?

Hedge funds and hedge fund strategies are a very complicated animal for many people and because of that and a false reputation of high risk, many investors like to avoid using them in their portfolio.

Are they correct?

Lets look at some returns because in my book no matter how complicated an investment is, if the returns can match the investment hype then they deserve a second look.

Regular readers well know that Man Investments are the only hedge fund providers that I recommend. For a start they are the biggest in the World and their history and track record as commodity traders goes back to the 1700's.

They are, by the way, a constituent of the FTSE 100 and in September 2005 had US$44 billion under management. To put their share of the market in perspective we are talking about a 1.3 trillion dollar industry.

Let's look at one of their products to see why they have become so successful.

Man IP 220 is one of the longest running capital guaranteed (of which more later) hedge fund products in the world and one of the most successful

In 1996 the financial media hailed it as a new generation of financial products on its launch.

10 years on did the financial media get it right?

The following figures suggest that they did.

Had you invested US$100,000 at its inception your investment would be worth

US$395,000 in September 2005

Many people may not be fully able to understand the complicated strategies used to achieve these great returns but you can sure calculate that this is approximately four times return on your original capital in ten years.

Again to put it in perspective over the same period world stocks returned 72.1%, world bonds 58.8% and Man IP 220Limited 295%.

So far I've been talking history and the question is do I think they can do it again?

I think they can because now Man has come back 10 years later with a new Man IP220 called the “Man IP220 International Ltd” which is open for investment until 20th.March.

It has two investment approaches incorporating AHL and the Glenwood portfolio.

Let me get just a little technical for a paragraph.

AHL invests in managed futures and has an annualised return since 1990 of 18.2%

The Glenwood portfolio allocates capital to over 60 international hedge fund managers who trade in six hedge fund styles. Since 1987 Glenwood have an annualized return of 10.1%. Yes it may be technical but the returns are great.

In addition as we mentioned earlier there is a guarantee with IP220.

At maturity Citibank guarantee that whatever happens, you will get back at least your original capital.

Citibank are the guarantor of all initial investments. Bondholders may also benefit from a profit lock in feature that potentially increases the guaranteed amount at maturity.

Since 1983 Man have launched more than 450 alternative investment products.

One of the things that attracted me to recommend Man over 10 years ago is that they did not come across as a greedy, wanting all your money company.

Their philosophy, which is one that I still agree with today, and which they still state on their advertising literature is stated thus:

“It is now widely accepted that a traditional investment portfolio can benefit from the additional diversification provided by alternative investments such as the Man IP220 Intl. Ltd.”

They show how a traditional portfolio of world stocks, bonds and cash would have led to a 36.9% improvement in the total return of the portfolio with a 20% allocation of the Man IP220.

Your cash is not locked away until the end of the guarantee period. You can withdraw your investment as it offers monthly liquidity. There are no up front charges as all your money is invested from inception so a redemption fee will apply over the first six years reducing from 4% to 1% over the period with no redemption fees thereafter.

For us ordinary mortals the minimum investment in the new IP220 Intl. Ltd. is US$/EUR 50,000.

This great company also offers discretionary fund management if you are one of the lucky few to have $25,000,000 spare. I think here we are talking mostly to people with $50,000.

If you would like further information or clarification on any matter discussed, please contact jerry@swissinvestcenter.net

Mag's Page

This month one (almost) exclusively for the ladies, and we start with 'shampoo vitamin and puff puff'.

That should have confused the guys enough already to send them flicking to the Golf page, but you ladies will have got the drift.

The term 'shampoo vitamin and puff puff' came from a small and surprisingly un-Westernised ladies hair salon in the centre of Pattaya. Or maybe not so surprising, as the sweet little lady owner probably didn't get many western women clients in that particular part of town. Nevertheless she did a good job at a very reasonable price, and without the need for those tedious appointments.

Then an equally nice and slightly more Westernised lady in Hua Hin continued the routine of walk in - sit down - quick and efficient snip with coffee thrown in. So it was with some trepidation that the first inevitable visit to a hairdresser back in the U.K was undertaken.

We all know the feeling don't we? It really does take time to get to know, and more importantly trust, that stranger standing behind you wielding very sharp scissors that you can't see. But surprise surprise, things really do seem to have improved, and by January I felt confident enough to have 'foils' This is apparently the new name for what used to be called streaks or highlights.

Just a word of warning though for anyone returning to the UK after a few years. CHECK THE PRICE LIST FIRST. Improved they may be, but I left the salon having made a considerable contribution to their new leather sofa, and to add insult to injury no-one noticed the difference.

On the subject of returning to the UK it is so easy to lose track of what is in fashion, and lets face it - these things are important. So for anyone planning a trip home soon here are a few ideas of what to stock up on.

If you wear them a lot jeans are a good place to start. You can buy them new in the U.K. for about 10 pounds (700 Baht) but they tend to be quite thin fabric, and not nearly so hard wearing as those in Hua Hin market for about 600 Baht. Fit can also be a problem, as with the recent trend for low slung hipster styles, which only defy gravity on twig thin young things, who wear them with cropped tops to display tatts and belly button jewellery.

Long ethnic style skirts are still 'in', but in deeper colours and better fabrics. Last years thin pastel Primark versions, guaranteed to withstand one cool wash, are being replaced by heavy cottons and fine cords in sludgy colours like browns, plums and greens, for which M & S charge around 2500 Baht. Any long skirts with panels of contrasting fabrics like satin and lace are good.

Tops are also appearing in deeper jewel colours plus a lot of greens, and some scarily bright yellows. They should have much more style and fit than your standard square T-shirt, and come in soft cottons and floaty fake chiffons. (Or should that be 'faux' chiffon?)

Chunky ethnic jewellery and belts are still good, but for smart business girl types a designer Laptop Bag is apparently essential.

Talking about designer bags - the real McCoy that is - according to a recent Sunday Supplement Style Guru some designs now discontinued over here by the likes of Prada and Gucci can still be found in the posher parts of Bangkok. However, as someone who can find her way blindfold on the Skytrain to Chatuchak I am sadly not the person to ask for directions.

Now for something more serious, if that is humanly possible. With the steep rise in U.K. house prices it seems that there has been a huge increase in the number of people now liable for Inheritance Tax. Of course if you are reading this, the problem hopefully isn't too imminent, but if your property is now worth over 275,000 pounds you might want to seek expert advice. The 275,000 capital level was set years ago, and intended to fleece only the super rich after their demise, but now thousands of properties alone are worth more than the Inheritance Tax threshold. Check it out.

Game Review RUGBY 06

Release date February/March 2006, dependent on platform

Xbox/PS2/PC

Electronic Arts

Who cares if cricket is the new rugby is the new football? We're still riding high from Mr Wilkinson's last-minute winning drop kick again the Aussies back in the 2003 Rugby World Cup final. As good as Freddie 'Andrew' Flintoff is, he didn't steal victory from under the noses of a 15- man death squad with seconds to the whistle in quite such spectacular style, did he?

Well, Electronic Arts, distinguished purveyor of the annual sports update, has been busy ferreting away, putting the FIFA and NHL teams hard at work to produce this little effort, possibly the finest looking rugby game ever seen.

For years, fans of Rugby and Rugby League alike have been waiting for a decent rugby game to grace our PCs and consoles. A rugby game where you can manoeuvre your player freely through the opposition line and not feel like you're running on a one-way rail track, a rugby game where you can gracefully and realistically step the opposition and leave them dumbfounded.

The Six Nations, Lion's Tour, Tri Nations, Guinness Premiership and Super 14 competitions form the backbone of the game play, allowing you to take part in just about every major event in the rugby calendar. But EA has been learning a few lessons, so it seems. As well as cramming Rugby 06 with the usual licensed names, players, sponsors and tournaments, the fundamental game play mechanic has had an overhaul.

EA is proudly boasting that Rugby 06 'mirrors the real thing', and has introduced all manner of previously unseen and untested fancy-pants rugby tactics. You can now use the off-load pass to get rid of a ball when set upon by impenetrable walls of opponents, just as you can take quick line-outs to keep the momentum of the game going. In the past console rugby games were notorious for stop-starting every few yards for lineouts, but Rugby 06 is about keeping the game alive, and keeping it on its toes. Another improvement in Rugby 06 is that quick penalties have been introduced to help improve the pace of the game and keep the defence on the back foot. New set plays have also been introduced and are very easy to pull off. The number of set plays has also been increased, with over 25 tactical set plays that can be mapped onto the controller. Another feature is that some players have stars hovering over their head, indicating that they are star players of the team; a feature that grants such players unique abilities, giving your team more impact. All of these will enable you to consistently keep any rival player on his toes, as you shift from being a forward-driven, attacking squad to a more defensive one, depending on your opponent. Sidestepping and shoulder charging have also been greatly improved. In Rugby 2005, these techniques felt delayed, but now it's almost instant. With the correct joystick moves you can have the defender tripping all over himself, or have him bounce off you and fly into the dirt.

You'll also be able to take all these great new features and tournaments and put them to use in the settings of just about every major ground in the world. 'Fortress' Twickenham, Cardiff's Millennium Stadium, grubby old Lansdowne Road and the imposing 1970s car park of Murrayfield are all in, while rugger pundits Ian Robertson and Grant Fox do the honours behind the mike. The graphics for stadiums and playing conditions have also been improved, with improved stadium imagery including rolling banners, 3D grass, varying pitch patterns and team-specific animated flags. In addition, new weather conditions such as snow, fog and visible player breath add to the games overall feel. All we need is a post-match bath simulator for the ladies and a Gameface mode powerful enough to recreate Shane Byrne's horrible teeth, and this would be the best rugby game ever seen!

Useful Telephone Numbers for Hua Hin

Railway station
032-512 770, 032-511 073

Bus station of Hua Hin
032-511 654, 032-512 543

Bus station of Prachuabkirikhan
032-601 901

Bus station of Pranburi
032-621 443

Hua Hin Hospital
032-520 401

Dog Rescue Center
0-1981 4406

Wild life Rescue Center (Tayang)
032-458 135

Department of Land Cha-am office:
032- 430 846-7

Department of Land Hua Hin office:
032-536 164, 032-512 407

Department of Land Prachuabkirikhan:
032-611 211

Department of Land Pranburi
032-622 199

Local Government (Hua Hin)
032-521 340, 532 471

Local water supply
032-511 677

The Power Board of Hua Hin
032-512 215, 032 513 165

Observer office:
032-531 078

Red Cross.
032-512 567

San Paolo Hospital
032-532 576-85

Polyclinic International
032-516 424, 032-516 425

Shell Cooking Gas
032-511 144, 032- 515 620

The Communication Authority of Thailand
(Hua Hin)
032-511 351

Rotary Club of Hua Hin
0-1916 6637
Meeting every Thursday 8.pm
at Hua Hin Grand Hotel & Plaza

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