Frankfurt-based fund advisor Resolute Investments and Universal Investment have opened the secured equity fund Resolute European De-Risked Equities UI for private investors.
The fund has been in existence since June 2018 and has been open to a broader public since the end of December. The aim is to achieve a stock-like return in the medium term with significantly reduced risk.
It invests in European equities of currently 24 companies, with around 93% of the market risk being hedged with corresponding index futures.
With the hedging strategy in place, the fund seeks to at least partially decouple itself from the market and rather insists that stocks with positive characteristics in the three areas of valuation, quality and growth perform better than the market.
The hedging strategy designed by Resolute Investments is dynamically based on index futures based on assessments of the economy, monetary policy and market trends and is very cost effective.