The Refined Growth Fund is targeted at Professional and Institutional investors.
The Fund builds on the benefits of using structured product solutions to deliver more reliable and consistent returns for portfolio managers allocating assets to “Alternatives”. By leveraging IDAD’s extensive relationships, the fund is able to enhance returns by diversifying counterparty credit risk with up to 30 investment-grade issuers. Introducing traditional management skills and experience adds further value and contributes significantly to returns.
The investment decisions for the Fund are part of a continual process encompassing an analysis of structured products that already exist (but haven’t yet matured) and sourcing new products if the wider investment view can’t easily be matched with products available in the secondary market.
The Fund is broadly split into three key areas:
Forming roughly 60% of the AUM. These will broadly be structured products from a spread of issuing banks (including collateralized/ securitized investments with non-
bank credit exposure). Payoffs will predominantly be focused on delivering regular income and also growth that is achieved with minimal (sometimes zero or less) growth in a variety of underlying investments (principally major equity indices).
Forming roughly 20% of the AUM. This part of the fund is designed to deliver excess growth, in terms of higher return investments, principally structured products, which may have a wider variety of underlying investment links, for example indices reflecting the performance of less-developed equity markets, individual stocks or equity sectors, fixed income indices/ underlying links, commodities and more. This part of the portfolio may become very defensive, holding cash/cash-like instruments, during periods when the managers are concerned regarding market volatility and/or direction.
Investments will make up around 20% of the AUM – designed to deliver longer-term growth from higher performing sectors that don’t necessarily deliver attractive returns when used in structured products. Typically, this section will comprise ETFs in sectors such as Artificial Intelligence, Pharmaceutical Research, Cyber Security.