Portfolio Partners trades on rate hikes
On the same day the board of the Reserve Bank meets to decide Australia’s immediate interest rate future, fund manager Portfolio Partners has come to market with two new products — The Interest Rate Opportunities Trust and the Australian Resources Trust.
The Interest Rate Opportunities Trust is the brainchild of the company’s senior fixed interest managers, Lance Pupelis and Nick Tribe, and is based on their belief that there is scope for innovation in the fixed interest space, where advantage can be taken of the slow and drawn-out cycles of rate tightening undertaken by central banks.
The Interest Rate Opportunities Trust, which involves trading interest rate futures contracts on the Australian Stock Exchange and the Australian Futures Exchange, draws on five years of modelling and research, and Portfolio Partners is claiming that there is strong potential for medium-term returns along with diversification benefits to complement existing strategies.
By comparison, the company’s second new product, the Australian Resources Trust, is consistent with Portfolio Partners’ belief that resource investors may look forward to a 30-year resources boom in circumstances where population growth and development is continuing in emerging economies.
Commenting on the launch of the two new products, Portfolio Partners chief executive Craig Bingham said they gave expression to the firm’s strategy of leveraging its proven ability to explore niche, high value investor opportunities both in Australia and overseas.
AUTHOR
Mike Taylor
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
