Innovation in Moderation
Product Innovations Ltd (PIL)will launch the first in a series of open-ended investment products target at high net worth and pension investors next Monday, and will follow with a range of structured products later in the year. The Overture range of structured products, which were initially expected to launch this summer, will have retail investment minimums.
The initial sub funds, managed by Frontier
Capital, will be Frontier Conservative and Frontier Moderate. Both are
based on an allocation to eight asset classes – global equities, global
bonds, emerging equities, emerging bonds, commercial real estate,
commodities, hedge funds and managed futures.
Manager Mike Azlen said the Conservative Fund, which has been
back-tested to 1987, has generated a 7.3% annual return net of fees over
the past five years. “It is our intention to deliver absolute returns in
all market conditions over a twelve month period. We believe [these
investments] are well suited to providing a core from which advisers and
their clients can add satellite investments,” he said.
PIL’s head of structured investments David Barclay-Miller added, “The
two Overture structured investments are cost-effective multi-asset core
portfolio solutions to which we will later be adding satellite
investment opportunities where the risk/reward profile is higher.”