The new fund blends together 10 alternative investment funds which are not normally available to the retail investor. They offer wide ranging portfolio diversification benefits because they have a low correlation to the traditional asset classes and are expected to deliver positive returns over each rolling 12-month period.
The 10 different asset classes in the fund will include diversified hedge fund exposure, precious metals and water securities such as utilities and water purification companies.
An infrastructure fund will invest in companies which create or replace infrastructure, such as airports and electricity generation.
A timber fund invests in companies that own and manage forestry while a commodities fund invests in securities related to commodity prices such as oil, metals and soft commodities such as wheat and soya beans.
It also invests in a fund that seeks to profit from fluctuations in global currencies, a global macro strategy fund which takes advantage of inefficiencies between different market and asset classes, such as equities and bonds, as well as a long-short equity strategy fund which runs both long and short equity positions and a fund which takes advantage of market volatility by seeking to profit from inefficiencies between the expected and realised volatility of equity markets.
I believe that this fund is an ideal solution for clients who are frightened of entering the equity market and it should form part of every growth portfolio. It is also a good choice for the smaller investor in current market conditions.