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
Grant Hackett has been promoted from CEO of Generation Life to head up the wider Generation Development Group.
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
