Investment management firm Rushton Financial Services has unveiled a new fund that seeks to address the need for alternative opportunities due to elevated risk levels in the Australian share market.
The Rushton Conservative Global Market Neutral Fund takes full advantage of diversification to smooth performance, with multiple investment themes spread over more than 400 positions in many countries across the Asia-Pacific region and Europe.
Rushton Financial Services executive director and investment manager of the fund Glenn Rushton said the fund was aimed at investors seeking positive net returns through up, down and flat market conditions, with little or no exposure to global equity markets, and with an overarching focus on capital preservation.
“The aim of the fund is to achieve the investment objective with low volatility, by utilising a high level of diversification, little or no leveraging and extensive risk management processes,” Rushton told selfmanagedsuper.
“According to ATO data, the three most popular asset classes for SMSF investors are Australian shares, cash and direct property, representing three-quarters of all investments.
“As such, the new Rushton fund may appeal to those SMSF investors seeking to diversify their investments into an alternative investment not linked to equities or property but offering a high, risk-adjusted return.”
At this stage, wholesale investors can invest directly through Rushton Financial Services.
Rushton revealed SMSFs have already shown early interest.
“The request came from a number of our clients, seeking a very low-volatility investment with better returns than bank interest,” he said.
“A number of SMSF investors have invested in our Rushton Global Market Neutral Fund, and the new fund has been established to offer these investors another investment option which may suit those seeking a low-volatility investment.”
He said the firm would continue to grow its product offering to meet the needs of a greater range of investors, including SMSFs, given their need for high risk-adjusted returns with minimal volatility.
“Demand for such products is expected to continue to grow due to record low official interest rates, falling bond yields and increased volatility in other asset classes such as shares and property, compared to the need for SMSFs and retirees for consistent and stable returns,” he said.