Architas has launched an alternatives fund for chief investment officer Caspar Rock that aims to grind out returns uncorrelated to precarious bond markets and equities.
The Architas Diversified Real Assets fund will invest in “real assets”, such as specialist property, infrastructure equity and debt, commodities and aircraft leasing.
Managed by Rock, with the aid of Harry Darke and Solomon Nevins, the fund’s expected OCF is less than 1.30 per cent. Its AMC is 65 basis points.
Architas business development head Cedric Bucher says the fund was built to offer diversification and income.
The fund holds units in the International Public Partnerships fund for inflation-linked income. Another position is in the John Laing Environmental Assets fund that invests in solar and wind farms that receive inflation-linked state subsidies and revenue for power generation.
Rock says the underlying assets in the portfolio have shown lower correlations to the price of equities and bonds, giving “real diversification” to investors.
“The attraction of real assets has been increasing at a time when equity yields have fallen and bond prices look vulnerable to potential interest rate rises,” he adds.
“This fund also offers access in a daily traded format to assets that are not as widely available in the retail market but that we at Architas have been researching and using for a number of years.”