Boutique fund manager’s FUM hits $1bn
Boutique fund manager, Instreet Investment has managed to raise more than $1 billion in funds under management (FUM) since its inception in 2007 for both its own and third party structured products business.
According to the company’s managing director, George Lucas there was a stronger demand from wholesale/sophisticated investors while the financial products attracted less retail investor interest due to the falling number of independent financial advisers (IFAs) and “a more prescriptive asset allocation model from financial planning dealer groups”.
“Wholesale investors still see the benefit of these products as a viable investment option to increase yields, gain exposure to alternative markets not readily available through existing managed investment products or to diversify and manage downside risks while maintaining upside exposure,” he said.
“Some SMSF trustees like to allocate a small percentage of their portfolio to catch any market upside to emerging or overseas market, whether it be equities or commodities, while having a known downside risk.
“It’s all about risk versus reward and getting some certainty into the portfolio on the downside.”
Instreet said it offered four retail structured products and delivered wholesale/ sophisticated investor products on demand.
“They are not for everyone, but for those investors who have a strong view on a market as well as a firm understanding of the risk involved, they can be an invaluable investment tool,” Lucas said.
“By listening to adviser feedback on these products, getting an understanding on their client gaps and needs, we are able to deliver an investment solution that meets the demands of their clients.”
AUTHOR
Oksana Patron
Recommended for you
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
Volatility in US markets means currency is becoming a critical decision factor in Australian investors’ ETF selection this year.
Clime Investment Management is overhauling the selection process for its APLs, with managing director Michael Baragwanath describing the threat of a product failure affecting clients as “pure nightmare fuel”.
Global X will expand its ETF range of exchange-traded funds next month with a low-cost Australian equity product as it chases ambitions of becoming a top issuer of ETFs in Australia.
