London gets its first listed Asian fund of hedge funds

KGR appeals to Brits hankering for Asian exposure without tax or volatility headaches.

Hong Kong-based KGR Capital is planning to launch an Asian fund of hedge funds that will be listed in London in mid-November, the first product of its kind in that market, according to Mark White, a KGR director and former head of international institutional business at JPMorgan Fleming.

The listed company, KGR Absolute Return PCC, is aimed at UK taxpayers who tend to shun offshore funds because their gains get taxed as income, not capital, meaning they face a top-bracket whack of 40%. A capital gain, however, means Brits have allowances to offset some of these taxes, so KGR decided to list the product onshore.

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