Newly-formed alternative fund manager Quattro Asset Management has launched its first investment product that aims to provide investors with low cost access to capital protected global strategies.
Vault 08 is the next evolution in capital protected investment products because it has reduced the breakeven return by almost 50 per cent and cut the investment term to five years, Quattro executive director David Adiseshan said.
"Typically, capital protected investments require an overall return of 11 per cent per annum for investors to receive a return," he said
Vault 08 includes five UBS global investment strategies which have never before been made available to retail investors. The volatility of the UBS strategies has been low at around three or four per cent, Adiseshan said.
"In a market that has been characterised by volatility, Vault 08 provides certainty in terms of capital with the comfort of one of the largest bank brand names at a fraction of the usual cost," Adiseshan said.
Quattro chief executive Andrew Saunders said they set out to build a very simple and transparent capital protected strategy model. "We spent 14 months building the right engine," he said.
Saunders said Quattro has done much work with the independent research houses and solid reports are expected from Aegis, Zenith and Adviser Edge.
According to Zenith Investment Partner's associate director Ben Davis, Vault 08 is aimed at high marginal tax paying investors.
"High marginal tax paying investors, who borrow to invest in Vault 08 and can service the interest payable on the loan, are especially suited to Vault 08 given the ability to claim their interest costs as a deduction from their taxable income," Davis said.
Vault 08 is open for investment from 5 May until 23 June 2008, with a minimum investment of $10,000.
