Instreet closes Link Series funds after raising nearly $40 million
29 April 2009- Instreet closes Link Series funds after raising nearly $40 million -
Sydney-based boutique asset manager Instreet Investment Limited has surprised the market and closed its structured product Link Series I and II funds after raising nearly $40 million of underlying investments.
Instreet’s managing director George Lucas said it was “an outstanding result for his team in a difficult market environment”.
Link Series I and II allowed investors to gain exposure to the price performance of the Australian equity market for a fraction of the cost (about 10-15%) of the notional exposure to the investment.
“Instreet’s success was due to the simplicity of the product in providing participation in the Australian equity market,” Mr Lucas said.
“Link is designed to allow advisers to build bespoke strategies for clients, whether accumulators or pensioners.”
Mr Lucas said the Link Series could compete with tax-effective structured products, even on an after-tax basis. “This was an advantage that suited many advisers, as the ATO has recently created uncertainty around some tax-effective products.”
Because of the success of the product, Instreet will be re-launching the Series in May to answer the continuing adviser demand.
The Link Series was rated by Lonsec as “recommended” and appropriate for investors seeking passive exposure to Australian equities, offering “broad representation, investability and transparency”. It is also suitable for self managed super funds.
The strength of the Link Series result underlined the success of Instreet’s business model, Mr Lucas added.
This was further apparent when Instreet earlier this year appointed two senior business managers to boost the company’s national profile.
“I think our objective of working closely with the financial advisory community and institutions to gauge what they really need in terms of investment products is paying dividends,” Mr Lucas said.
“We hope to stand out in this crowded marketplace by offering products that will capture the imagination of advisers and are also relevant to their business and clients’ goals.”
