Liontamer’s Neville Giles told delegates at the recent SIFA conference in Wellington that the company is looking at providing advisers with capital protected funds which are linked to returns in either Asia or the commodities markets.
Asia, particularly China, is an area which is increasingly on the investment map as many believe it will become the engine room of world, growth and that it is a cheap place to invest relative to more developed markets.
However there are some downsides. For instance it is a difficult place to invest directly, market volatility is an issue and some of the economies are not as well structured as developed countries.
Giles says it is possible to build a fund linked to the MSCI ex Asia index which ha a participation rate of more than 100%.
The other idea being considered is a commodity fund with a three year term, where investors share 100% of the upside. The idea is that the fund would be linked to the Goldman Sachs commodity index.
Giles says such a fund "has an intrinsic appeal" to investors at the moment.
He says commodities have returned 11% annually since 1970 and they are a natural inflation hedge.
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