The fund, Skandia Alternative Investments, will give investors access to a range of institutional funds usually reserved for the very wealthy for a £1,000 lump sum or £50 per month.
The fund aims to provide investors with long term capital growth by investing in a diversified range of alternative assets classes. The firm says the assets offer excellent portfolio diversification benefits because they have low correlation to traditional asset classes and, when combined, are typically expected to deliver absolute returns over rolling 12 month periods.
The fund has been classified to the IMA Absolute Return Sector. It will be available to UK advisers from June 23 with a view to launching outside of the UK later in the year.
It is available to advisers via Skandia’s life and pensions products, the Selestia Investment Solutions platform and Skandia International’s offshore bonds. It will be available on the Funds Network and Cofunds platforms in due course.
Skandia Investment Group chief executive Jamie MacLeod says: “This is a step-change in the fund management industry. It is all the more significant given its unique ability to provide investors entry into a whole new range of asset classes that previously they may not have been able to access. Despite recent volatility in markets, investors are looking for something new and innovative to invest in. The Skandia Alternative Investments Fund offers them the opportunity to spread risk in a fund which complements their existing investments.”