Credit Suisse Asset Management (CSAM) has developed a derivatives-based product for pension fund inv...
Credit Suisse Asset Management (CSAM) has developed a derivatives-based product for pension fund investment purposes.
The product, aimed at larger schemes, will invest in derivatives based on the UK market as well as the group's Short Duration Global Fixed Income product and CSAM's 'long-short' investment strategy in US markets.
The UK Synthetic Equity Plus (S-CORE) product is intended to be an investment vehicle that will combine passive and active management styles.
It will track the market like a conventional index portfolio but instead of paying the transaction costs of buying shares involved with a tracked investment it will buy futures and other derivative products linked to movements in the main market indices.
Andrew Harmstone, managing director and head of derivatives at CSAM, said: "The product provides exposure to UK equities synthetically through futures.
"This gives pension funds the exposure to UK equities that they want but with a better risk-reward ratio plus the added value of being invested in other investment products.
"It also provides greater management control as the product can be synthetically tailored."
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