The latest in funds and investment news from across the world.

Nomura
Nomura Asset Management UK has launched its Alternative Alpha Fund, which uses derivatives and other strategies to chalk up returns of 10 per cent a year with an average volatility of less than 10 per cent.

The portfolio will mainly use listed options and futures across the major equity and volatility indices, as well as bond futures. The Ireland-domiciled UCITS fund is managed from Tokyo by senior portfolio Manager David Latto and his team. 

“The changing macroeconomic backdrop in the last decade has led to a shift in the global investment industry. The Nomura Funds Ireland - Alternative Alpha Fund aims to achieve stable returns and daily liquidity via its unique approach of combining yield enhancement and derivative strategies with tail-hedge strategies,” David Latto, senior portfolio manager, said.

Aviva Investors
Aviva Investors, the global asset management business of UK-listed Aviva, has launched a multi-asset fund to both accredited and retail investors in Singapore. 

The fund is designed to “deliver long-term sustainable income for people planning their retirement”.

The Aviva Investors Sustainable Income and Growth Fund is a global, bottom-up vehicle which aims to provide 5 per cent natural income with long-term capital growth from a portfolio of 80 to 120 securities drawn from over 25,000 names in the MSCI All Country World Index and the Bloomberg Barclays Global Aggregate Bond Index.

The fund, which is run by manager Francois de Bruin and an investment team, will seek to improve the sustainability of holdings through engagement and proxy voting. Environmental, social and governance (ESG) criteria are fully integrated into the investment process, which excludes sectors such as tobacco and controversial weapons, as well as energy companies that derive over 10 per cent of their revenues from coal. 

The use of ESG approaches is, as chronicled by this news service, part of a growing trend in the wealth and investment management sector. 

“By focusing on assets likely to generate dividends and coupons during drawdown, rather than selling shares for income, the fund will help mitigate the risk of permanent loss of capital when markets are depressed,” Francois De Bruin, fund manager, said.

Henderson Rowe
Henderson Rowe, the UK investment firm, has teamed up with Hong Kong-based exchange trade fund provider to offer two ETFs for Henderson’s customised portfolios.

The Premia ETFs use methodology which identify equity factors including value, quality, low volatility and size with the potential to outperform the broader China onshore A-shares equity market over the long term. The fundamental beta approach also leverages a buy-low, sell-high strategy for factor investing, contrary to a traditional market capitalisation strategy, Henderson said in a statement yesterday. 

Listed on Hong Kong’s HKEX, the Premia CSI Caixin China Bedrock Economy ETF and Premia CSI Caixin China New Economy ETF, are physical A-shares ETFs. They each consist of about 300 Shanghai and Shenzhen listed stocks, and have a total expense ratio of 0.50 per cent per annum. 

Since its launch in late 2017, the Premia CSI Caixin China New Economy ETF has amassed over $100 million in assets and is the best performing China A-shares ETF year-to-date globally.

“China is an enormous market and as the economy continues to expand, its financial markets become increasingly relevant for global investors,” Artur Baluszynski, director and head of research at Henderson Rowe, said.