Luxembourg-based investment services firm LRI Group has teamed up with German group QC Partners to launch a Volatility Income funds aimed at offering investors stable returns in volatile markets.
The fund aims to deliver long-term earnings of 8-10 percent per annum. It specialises in derivatives and volatility strategies but has 51 percent of its portfolio invested in investment grade Euro denominated bonds.
It aims to offer diversification through an actively managed options portfolio diversified consisting of equal numbers of exchange-traded, liquid index securities from Europe, the US and Asia.
The Fund will be first registered for public distribution in Austria, Germany and Luxembourg and is available to institutional and private investors.
It comes at an offering premium of 5 percent with running costs of 1.5 percent. The fund has a distributing return structure.