Instreet announces hedging product
Boutique fund manager Instreet is expanding its Link series with the introduction of the Link DS hedging product, which has received a 'recommended' rating from Lonsec.
The Link DS aims to assist in hedging an investor's Australian equity portfolio, allowing investors to maintain their market exposure, according to Instreet.
Instreet managing director George Lucas said the Link DS would suit an investor looking for a short-term risk management tool.
"Link DS is a useful tool for managing downside risk, as an investor has the potential to hedge their Australian equity exposure," he said.
Many investors chose to reduce their overall market allocation in the expectation of market downturns, which could result in them missing out on market rebounds, he said.
"Hedging a portion of your portfolio using Instreet Link DS gives investors another option and can allow you to maintain your Australian equity exposure without allocating your portfolio to cash," Lucas said.
The Link DS is an investment in a deferred purchase agreement, with its performance linked to the decline in the value of the Australian stock market as measured by the S&P/ASX 200, Lucas said.
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