The alternative product focuses on a global macro approach to multi-asset investing. "We recognise Permal's successful track record and history of more than 36 years in the alternative investment industry. The product's daily liquidity and the potential portfolio benefits of an active global macro strategy make it a welcome addition for Australian investors to consider for their alternative investment allocations," S&P analyst Michael Armitage said.
Permal aims to produce a gross return of 8 per cent to 10 per cent annualised over a market cycle of three to five years, with volatility of 6 per cent to 8 per cent. It aims to do this by applying existing internal quantitative and qualitative processes to construct a forward-looking portfolio of multiple market beta positions across a wide range of asset classes and products.
A major product feature is the elimination of fees at the underlying manager level due to the use of beta replication and traditional beta components compared with a typical fund-of-fund structure.
