Multi-manager IPAC has introduced US fund-of-hedge funds manager Prisma Capital Partners into Australia, signalling its intent to offer increased exposure to alpha strategies in its diversified funds portfolio.
Ipac has also made an initial $160 million initial investment in the Prisma Global Multi-Strategy Fund, and is the responsible entity for the fund.
The Prisma fund invests across a range of alpha strategies and investment markets, with emphasis on diversification, risk management and downside protection, according to Ipac chief investment officer Jeff Rogers.
“Compared to other multi-strategy type funds,” he said, “the Prisma fund deliberately seeks to deliver active return with a lower correlation to traditional asset classes, such as shares and bonds”.
Ipac’s investment in the wholesale fund, which will be available to retail investors only through Ipac’s diversified funds, heralds an “incrementally larger exposure to alpha strategies in the diversified funds”, he added.
The strategy is effectively to increase the exposure to various alpha strategies of a typical balanced fund in the Ipac portfolio beyond its current level of approximately 3 per cent.
Over time, an optimal Ipac diversified portfolio may have a much higher allocation to alpha strategies than it does now, “eventually up about 20 per cent”, Rogers said.
Sydney-based alternative investments specialist Brookvine, which represents Prisma in Australia, has partnered with Ipac to introduce Prisma into Australia, and will market the global multi-strategy fund to the institutions.
