Australian investment manager JB Global has said it expects to launch more structured products in coming months as investors’ risk appetite increases.
“We plan to launch more structured products as client demand increases. We plan to build on our success from last year, in which we raised $230 million,” JB Global chief executive Justin Beeton said.
The firm yesterday launched new iterations of three separate funds linked to listed United States conglomerate Berkshire Hathaway – which is led by investment guru Warren Buffett – emerging markets and the S&P/ASX 200 Index.
“We will do the same three underlyings for June and probably also products with new underlying exposures. So we may come out with four to five structured investments in June,” Beeton said.
He said although he had noted demand for low-risk investments, clients were looking to get some exposure to growth assets.
“I think post global financial crisis there has been a flight to safety and traditionally that flight to safety has been to transfer clients’ funds out of growth assets into less risky assets such as cash and fixed interest,” he said.
“But over the last six months we have seen a demand for low-risk-natured investments, however, clients still desire some exposure to growth assets.
“Investors don’t want to miss out on markets rallying. Capital-protected investments give investors a mixture of both; they can still have a low-risk-natured investment as the investment is capital protected yet with the upside of growth assets.”
The new iteration of the JB Global Berkshire Hathaway Income and Equity Accelerator followed a bullish outlook on the US market from Buffett, he said.
“Berkshire Hathaway’s delivered average 20.2 per cent returns every year since 1965,” he said.
“Buffett remains incredibly bullish on the US market, as I am myself. He announced in his shareholders letter that he’ll set a new record for capital spending – $8 billion – and spend much of that in the US. I have no doubt he will continue to make impressive returns this year.”
