HFA enhances retail fund range
By Craig Phillips
HFA Asset Managementhas launched two new funds — the HFA International Shares Fund and the HFA Australian Shares Fund — into the retail market. The funds are targeting investors seeking absolute returns and a low correlation to traditional equity markets.
HFA managing director Spencer Young says the funds have been developed to meet adviser and investor demand for diversification away from exposure to equities.
“Our research shows more and more planners are now looking to allocate from 5 to 20 per cent of [client] portfolios into absolute return strategies, to protect investors against unpredictable markets,” he says.
Young says retail investors, through the funds, can complement their core MSCI World Index or ASX 200 Index exposure with a low-correlated absolute return fund, aimed at generating returns regardless of market direction.
The international shares fund invests in 12 overseas absolute return managers with a geographic allocation mirroring that of the MSCI World Index. The fund aims to achieve consistent outperformance above this index while maintaining around half of its level of volatility.
Meanwhile, the Australian shares fund invests in 10 domestic equities managers specialising in absolute return-style investment strategies. It also aims to outperform its index (the S&P/ASX 200 Index) while maintaining significantly lower levels of volatility.
“Retail investors continue to follow the lead of large institutional investors in terms of portfolio construction and asset allocation trends, as appropriately structured products become available to the broader market.”
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