- Thursday, 02 June 2011 | Staff Reporter
The new fund, called the Ibbotson Diversified Alternatives Trust, is intended to complement a traditional portfolio by introducing broad exposure to alternative investments.
"Many investors want an allocation to alternative investments, but may not have the expertise or purchasing power to assemble a diverse portfolio of non-traditional investments," Ibbotson Associates Australia managing director Daniel Needham said.
The fund is managed by Ibbotson's Australian alternatives team, led by Ibbotson head of alternatives Michael Coop.
"The trust is invested in liquid assets and strategies that have different return drivers than traditional assets like shares and bonds, and are priced to offer attractive risk-adjusted returns," Coop said.
The fund targets mainly independent dealer groups and self-managed superannuation funds.
It aims to generate a return of cash plus 2 per cent a year net of fees and over a rolling five-year period, and is designed to be between 10 per cent and 30 per cent of an investor's portfolio.
"You need to have a meaningful exposure for it to work," Coop said.
The fund uses a range of instruments, including global listed infrastructure, hedge fund beta and commodities, as well as less commonly used instruments such as insurance-linked securities.
It also had an exposure to equity market volatility, which should protect the portfolio against equity market falls, Coop said.
- RBA rate cut: what would it take?
- Australian bonds: tread carefully
- Creating super fund alpha
- Retirement income innovation must be inclusive
- Weighing up default fund insurance
- Don’t neglect developed markets
- Hunting for ‘preferred infrastructure’
- Westfield: a failure of engagement
- Can Europe avoid Japan’s fate?
- Cleaning up with clean technology
- ANZ appoints head of rates research
- Mercer names investment operations boss
- ANZ appoints global commercial banking MD
- Life insurance working group names chairman
- BT expands life insurance team
- Former Bennelong CEO joins Wingate Group
- LGS appoints new property portfolio manager
- HFA Holdings appoints new director
- AIA Australia CEO joins FSC board
- Investa Office Fund manager steps down