Instreet launches funds to suit volatile markets
15 October 2008Lonsec Research gives fund ‘Highly Recommended’ rating
The Sydney boutique asset manager Instreet has launched two funds that give individual investors exposure to world commodities and global markets and are “ideal” for self-managed superannuation.
The Instreet Reliance Commodities Fund and the Instreet Reliance Global Allocation Fund are open-ended funds, with daily subscriptions and redemptions, a unique characteristic in the structured product space. They also offer continuous capital protection and profit lock-ins to limit the downside risk in volatile markets.
The funds have the potential to pay a maximum quarterly distribution of 4% a quarter or 16% a year.
Instreet managing director George Lucas says: “The open-ended nature of these funds suits them to be listed on platforms, making them ideal for self-managed superannuation.
“So it’s not surprising both funds have been approved for the Macquarie platform on the Investment Manager, Super Manager and Pension Manager menus.”
The funds, which are Instreet’s second offering to the market following the successful launch of its first product, the Instreet Enterprise Trusts, have got the thumbs up from the research house Lonsec.
Lonsec has awarded a “highly recommended” rating tothe Reliance Global Allocation Fund and the Instreet Reliance Commodities Fund received a “recommended’ rating from the research house.
Lonsec says: “The underlying investments are actively managed funds likely to appeal to higher-risk profile investors who are comfortable paying fees for active management and product structuring.”
The commodities fund will provide unitholders with an indirect Australian dollar denominated exposure (with a dynamic currency hedging strategy in place) to the Luxembourg-domiciled Schroder Alternative Solutions Commodity Fund that had a total fund size of $3.5 billion at 30 June, 2008.
Lucas says: “This open-ended actively managed fund considers a set of up to 60 commodities, with a close focus on 40, that are analysed on a weekly basis. The fund is predominantly invested in listed commodity markets, with a small percentage of equity investment into some commodities that are not traded on the listed markets, such as steel, coals, diamonds and tea.”
The manager uses an active approach to portfolio management that differentiates the fund for index-style investments.
The global allocation fund is managed by BlackRock and also is domiciled in Luxembourg. It had a total fund size of $19.7 billion at 30 June, 2008.
Lucas says: “The fund actively manages investments globally in equity, debt and short-term securities, both corporate and government issuers across 30 countries.
“The global allocation fund has an actively managed, value-orientated approach to security selection (across all company sizes, sectors, countries and qualities and cash equivalents). It seeks to identify attractively priced investment opportunities using both top-down and bottom-up analysis without geographic limits seeking to take advantage of changing financial market conditions.”
Individual minimum investment is $5000 per fund; minimum withdrawal $1000; and minimum balance $1000 with redemptions and subscriptions on a daily basis.
