- 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.
Latest from InvestorWeekly
- AMP Capital completes NAB House acquisition
- Emerging markets in a strong position: Aberdeen
- Appetite for post-trade automation grows
- ASX to offer RMB settlement services
- Capital Group appoints new RE
- Protecting against sequencing risk: Ability Capital
- AMP Capital offloads Sydney property
- RI Academy forms two international partnerships
- New York Life acquires Dexia AM
- Antares Capital launches income fund
- A weather forecast for 2014
- Is Asian turbulence a win for China?
- Why Detroit’s honest self-renewal is a lesson for Japan
- Volatility means opportunity for fixed-income investors
- US Fed likely to stick to existing policy
- Asian bonds offer value after Fed-induced sell-off
- Convertible bonds: solid foundations are needed when reaching for the upside
- ING DIRECT urges third parties to prepare for Basel changes
- A straight-forward channel
- Crystal balls and consistent returns
- Perpetual adds to credit and fixed income team
- Bennelong Wealth Partners appoints CIO
- Equity Trustees creates investment management role
- Mercer appoints client service leader
- Morningstar Australasia appoints joint CEOs
- UniSuper expands leadership team
- WA Super appoints chair
- Acorn Capital appoints microcaps analyst
- Towers Watson appoints global investment head
- Centuria appoints senior facilities manager