Boutique Australian equities manager Prime Value Asset Management has launched a new 'cash plus' fund targeted at retail and SMSF investors.
The Prime Value Cash Plus Fund invests in a diversified portfolio of income-producing securities and looks to outperform the Reserve Bank of Australia's cash rate.
The strategy is effective for investors who want to 'park' cash while waiting to re-enter the market, said Prime Value head of retail distribution David Glascott.
High-net-worth investors have been attracted by the fund due to its compliance with the significant investor visa scheme, Mr Glascott said.
"High-net-worth investors generally want an investment that they can understand, and which is low risk. Capital preservation is very important when they are investing funds in a new country," he said.
The fund currently has $70 million in funds under management and has outperformed the RBA cash rate since June 2014.