Denning Pryce to manage Zurich equity income fund
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).
Recommended for you
Professional services group AZ NGA has made its first acquisition since announcing a $240 million strategic partnership with US manager Oaktree Capital Management in September.
As Insignia Financial looks to bolster its two financial advice businesses, Shadforth and Bridges, CEO Scott Hartley describes to Money Management how the firm will achieve these strategic growth plans.
Centrepoint Alliance says it is “just getting started” as it looks to drive growth via expanding all three streams of advisers within the business.
AFCA’s latest statistics have shed light on which of the major licensees recorded the most consumer complaints in the last financial year.
