Antares Capital Investment manager Ken Hyman said with interest rates expected to remain low, traditional cash investments like term deposits are falling out of favour.
“The appetite for low risk investments is still there, so investors are looking for alternatives that aim to give them added returns on top of the cash rate,” said Mr Hyman.
The fund will aim to outperform the UBS Bank Bill Index by investing in a diverse range of cash, domestic and global fixed income securities depending on the economic environment.
It will be managed with the Antares Enhanced Cash Trust as its core strategy, which had no negative returns through the GFC.
The fund has received a ‘recommended’ rating from research house Lonsec as a result of the experienced team and its established track record in the management of cash strategies.
“Fixed income products aren’t always easily understood by retail investors and maybe this has made them a less popular choice than equities,” said Mr Hyman.
“If investors are looking for regular income, strong liquidity, with a focus on capital preservation, the Antares Income Fund could be an ideal investment for them.”
The Antares Income Fund is available directly through Antares or the MLC Wrap and Navigator products and is expected to be added to the other major platforms in early 2014.
