Omnis Investments, the joint venture between Openwork and fund manager Octopus, has launched a new multi-asset vehicle offering downside protection.
Launched in conjunction with J.P. Morgan Chase, the IFDS Omnis J.P. Morgan Protector 80 fund links to a broad portfolio of assets and aims to ensure its value does not fall below 80% of the highest ever share price.
Managed by J.P. Morgan Mansart Investments, part of the global banking giant, the fund seeks to achieve its growth and protection objectives by gaining exposure to two components - through an index and cash.
The index allocation is linked to the performance of the J.P. Morgan Efficient Frontier (GBP) index, which provides exposure to different asset classes such as equities, bonds, currency and commodities.
Depending on market conditions, up to 100% of the fund can be in either the index or cash allocations. It is currently 99.98% weighted to the index component including: 35% UK equities; 30% global government bonds; 10% each in currency and global emerging markets bonds and 5% each in US, Japanese and global emerging markets equities.
To provide additional downside protection, the fund has entered a contract with J.P. Morgan, which uses a basket of government bonds as collateral to offset the vehicle's credit risk.
"As different asset classes perform in different ways, spreading the exposure across a number of areas means investors are never left too exposed to the ups and downs of individual markets," Omnis says.
Investec also launched a Multi-Asset Protector fund in February this year while BlackRock is set to rollout a comparable product in the near future.
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