Availability of long/short funds increases

Availability of long/short funds increases

The number of differentiated global long/short equity strategies available to Australian retail investors has increased in recent years, according to Zenith Investment Partners.


The firm’s 2016 Long/Short Sector Review found that new long/short strategies had been released into the market in recent years, some of which Zenith Investment Partners senior investment analyst Justin Tay said catered to “previously vacant segments of the risk spectrum”.

“We have observed the launch of a number of new and differentiated investment strategies over the last couple of years, providing investors with greater choice for portfolio construction,” he said.

“Historically, the global long/short space has been relatively limited with regards to the breadth of investment options available, so this is a positive.”

Managed risk strategies were one of the new types of long/short strategies benefiting Australian retail investors, Mr Tay said, noting that Zenith now has two such strategies on its approved product list, where 18 months ago there were none.

“We view managed risk strategies as an appealing option for those investors who are transitioning to retirement for example,” he said.

“This is the time when investors are most exposed to sequencing risk and cannot afford a material loss of invested capital.”

Read more:

Investors worried about rising US inflation

Lack of growth to stifle bank returns

'Robust' IPO market to continue in 2017

Super assets reach $2.1 trillion

‘Inventive’ strategies needed to generate returns

 

Availability of long/short funds increases
investordaily image
ID logo
promoted stories

Appointments

investordaily image

AMP names incoming chief risk officer

Jessica Yun

investordaily image

Antares Equities hires new director

Staff Reporter

Brad Fox

Former AFA CEO appointed to boutique board

Staff Reporter

Analysis

ST Wong

Busting common passive investing myths

ST Wong

investordaily image

The long-term case for real estate

Chris Bedingfield

investordaily image

Shining a light on investment options

Stuart Hoy