Zurich has appointed specialist derivatives boutique Denning Pryce to manage its newly launched Zurich Investments Equity Income Fund.
The fund is targeted at investors who want high income and some capital growth without taking on the same level of risk as a traditional Australian shares investment.
With a 50 per cent exposure to the Australian share market, it aims to provide investors with 10 per cent income annually, according to Zurich investments director Matthew Drennan.
He said the fund, which will close to new investors once it reaches $750 million, aims to “deliver high yield based on leading Australian stocks and derivatives that do not use leverage”.
“It uses equity-based strategies, such as exchange-traded options, rather than debt and hybrid securities, differentiating it strongly from most other high-yield funds in the market.”
As such, Drennan sees the fund as a “better alternative for many investors than traditional annuity streams, such as corporate debt or mortgage backed securities”.
The appointment of Denning Pryce continues Zurich’s strategy of forming strategic partnerships with specialist investment managers.
Denning Pryce join Lazard (international equities), Constellation (Australian equities), Renaissance (Australian listed property trusts), and Deutsche (diversified funds and fixed interest).
