Man Investments Australia and nabCapital, a division of the National Australia Bank Group, this month unveiled a new portable alpha product to provide stable returns for institutional investors.
The Man RMF Bond Index Plus is designed to outperform the UBS Composite Bond Index by 200 to 400 basis points annually by using the benchmark to generate the bond market return and invests in the RMF Pure Alpha Strategies fund, a fund of hedge funds, to generate excess returns in both rising and falling markets.
“Portable alpha is now used widely by institutional investors in Europe and the U.S.,” John Morrison, CEO of Man Investments Worldwide said. “The benefit they like is the ability to generate consistent, low volatile returns in a wide range of market conditions.”
The new portable alpha product was opened to institutional investors on May 1.