Boutique fund manager Instreet is looking to continue its Link Series product with further releases after closing its initial two offerings in the set and raising close to $40 million in capital.
Additional Link Series offerings will be launched in May as a result of continued adviser demand.
When launching the first two funds in the series Instreet was hoping to raise $20 million, making the final figure achieved an outstanding result, according to Instreet managing director George Lucas.
The majority of the funds raised by Link Series I and II came from the self-managed superannuation fund (SMSF) sector, which was deliberately targeted.
"We made the product so it could legally be used in an SMSF with no debt attached to it and no loans," Lucas said.
The Link Series are structured products that allow investors to gain exposure to the Australian equities market without funding the entire amount invested. The underlying asset for the funds is the ASX 200 index.
"So for example you would spend $12,000 to get $100,000 worth of market exposure. That means you are only putting up 12 per cent of the underlying notional exposure to the market," Lucas said.
The initial outlay is not guaranteed and in relation to downside risk the investor does stand to lose this amount if markets continue to fall.
Due to the funds' architecture the series will be released as a set of closed-ended funds.
"You can't structure these funds as open-ended products. Because of the options inside them you can't structure them as open-ended products," Lucas said.
The minimum investment amount for the Link Series is $5900 and the investment term is two years.
