LRI Group, an independent investment services company, has partnered with QC Partners to launch its VolatilityIncome fund.
QC Partners, a Frankfurt based asset management company, has launched the fund in response to the current market environment, with derivative markets signalling increasing volatility on the stock market.
The fund will generate interest payments on bonds and will principally focus on attractive returns by collecting option premiums. It seeks a long-term earnings target of 8-10 per cent per year. Through the specialisation in derivatives and volatility strategies, the company more than doubled its assets under management over the past 24 months from EUR300 million to around EUR700 million.
Harald Bareit, Managing Director of QC Partners, says: “Our investors can already, depending on their individual requirements, invest in products with a pension-like risk profile or in variants close to the stock market. With the dynamic opportunity-risk profile of the VolatilityIncome fund, we pursue above-average performance targets.”
The fund shows little resemblance to traditional asset classes and is internationally diversified: the actively managed option portfolio consists of equal numbers of exchange-traded, liquid index securities from Europe, the US and Asia.
The fund is aimed at institutional investors and informed private investors who would like to benefit from price fluctuations and convert these into performance through volatility strategies. The fund will be first registered for public distribution in Austria, Germany and Luxembourg.
Thomas Altmann, Head of Portfolio Management at QC Partners, adds: “Volatility is an alternative source of return. Investors are thus able to record long-term yields with option premiums in a low-interest environment – both in falling and markets experiencing limited growth. Price losses are limited at an early stage through systematic risk management and can usually be made up for in the short-term.”
Michael Sanders (pictured), Managing Director, LRI Invest SA, says: “We are pleased to be working with QC Partners and I am thrilled to have such an innovative fund on the LRI Group platform. 2018 looks to be a promising year for the asset management industry and LRI Group is positioned well to provide funds with a diversified network of distributors, placement agents and consultants.”