GLG launches UCITS III version of flagship UK Alternative Fund

London, January 25th 2010 – GLG Partners LP (“GLG”), the Financial Services Authority (“FSA”) authorised and regulated investment manager, will next month launch the GLG Alpha Select (UCITS III) Fund (the “UCITS Fund”), a UCITS III version of GLG’s flagship UK long/short equity fund, subject to the necessary regulatory approvals.
Managed by John White and Jason Mackay, the UCITS Fund will aim to replicate GLG’s existing market neutral, long/short equity strategy. 
Like the existing GLG UK long/short equities strategy, the UCITS Fund will focus on fundamental stock-picking underpinned by top-down economic analysis and strict risk management.

One of the important considerations for investors in UCITS III funds is how closely performance will track existing alternative fund strategies. “This was something we looked at very closely in respect of the new UCITS Fund,” said Andrew Thatcher, co-head of UK marketing at GLG. “Whilst there is always potential for some tracking error we are confident that the existing alternative fund strategy can be substantially replicated under UCITS constraints and that the UCITS rules provide the portfolio managers with all the tools they need to manage this strategy within a UCITS vehicle.” 
The management and performance fees for the institutional share class of the UCITS Fund will be a management charge of 2 per cent of the net asset value of the UCITS Fund and a performance fee of 20 per cent of profits made by the UCITS Fund.  GLG currently expects to initially limit investments in the UCITS Fund to a maximum of £200 million, and that institutional investors will be required to invest a minimum of £100,000, while retail investors will be able to invest a minimum of £1,000. 
The UCITS Fund will be a sub-fund of GLG Investments VI plc, incorporated in Ireland and which is expected to apply for UK reporting status. If granted, this should ensure any investment returns are taxed as capital gains for UK resident and domiciled investors, although the applicable tax treatment will depend upon the individual circumstances of each investor and may be subject to change in the future.
The investment management team will be advised by Sir John Gieve, former Deputy Governor of the Bank of England, who is a consultant to GLG Partners.