Alpha Lease Fund Australia has launched a managed fund aimed at giving self-managed superannuation fund (SMSF) members the ability to invest in a portfolio of commercial equipment leases.
The Lease Backed Securities Income Fund is looking to play a part in the defensive component of SMSF portfolios by providing an income stream with a significant level of diversity without any gearing.
Statistics provided by the fund manager showed 40 per cent of the commercial equipment in Australia was acquired through leasing and the sector had grown significantly in the past 10 years.
It is an asset class previously only offered to institutional investors, such as banks.
"Alpha has packaged one of the banks' best-performing assets into an annuity-style investment product. Commercial equipment lease portfolios as an asset class have demonstrated and continue to demonstrate strong performance throughout the cycle," Alpha Lease Fund Australia founding director Kirk Tsihlis said.
"Equipment lease portfolios weathered the GFC (global financial crisis) exceptionally well due to their intrinsically defensive qualities."
The new fund is aiming to deliver a yearly return of 11.25 per cent with performance fees payable for investors only if this target is surpassed.
The Lease Backed Securities Income Fund is already open to investors, with the minimum amount required to participate being $50,000.
