New van Eyk fund aims to reap rewards from sharemarket falls

22 May 2012
| By Staff |
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To help protect wholesale investors against continuing mark movements, van Eyk has announced the launch of a new managed fund through its Blueprint Series.

The van Eyk Blueprint Volatility Buffer Fund invests in specialist strategies offered by Barclays and Triple Three Partners. Triple Three utilises options over the CBOE Volatility Index, "aiming to produce negative correlation to the performance of US shares," van Eyk said.

"Such a strategy aims to produce solid outperformance and absolute returns during fall markets, while slightly outperforming during bull markets," van Eyk chief executive Mark Thomas said.

According to Thomas, traditional methods of diversification have proven to be highly correlated with equity markets and it was important for investors to have a "buffer" against a surge in market volatility.

"This new fund treats volatility as an asset class and, by getting exposure to that asset class, has the potential to provide strong diversification benefits," he said.

The fund is available to wholesale investors with a minimum investment of $500,000, van Eyk stated.

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