Financial group Zurich Australia has appointed boutique asset manager Denning Pryce to manage its Zurich Investments Equity Income Fund (ZEIF).
The fund specialises in listed equity and derivatives based management. It is aimed at retail investors and promises a return of 10 per cent annually with a 50 per cent exposure to the Australian market.
"It is the first time this type of structured product has been available to retail investors via a managed fund," Zurich Australia director of investments Matthew Drennan said.
ZEIF uses equity-based strategies such as exchange-traded options, rather than debt and hybrid securities.
"It is designed to offer high yield, some capital growth and cushion the impact of market downturns. We see this product as a better alternative for many investors than traditional annuity streams, such as corporate debt or mortgage-backed securities."
ZEIF, which is capped at $750 million, will aim to manage traded options to reduce exposure to the share market and lower volatility.
Denning Pryce was established in February by Hugh Denning from BT Financial Group and Michael Price from Goldman Sachs JB Were. It appointed RBC Dexia to provide custody, investment administration and unit registry services in June.
Zurich Australia's other managers include Lazard, which manages international equities, Constellation, which manages Australian equities, Renaissance, which manages Australian listed property trusts, and Deutsche, which manages diversified funds and fixed interest.
Last week it announced it was looking for buyers for its corporate superannuation businesses, i super and Finium.
