Nomura is marketing a ten-year, euro-denominated fund via its Ucits III-compliant Enovara platform that uses a portfolio insurance model to provide capital-protected access to a multi-asset investment strategy.
Balanced Index 100% Guaranteed Fund (EUR) dynamically allocates capital between cash-type assets and the Nomura Euro Balanced Index. The index uses a set of rules every month to rebalance a portfolio comprising money market instruments, developed equities (S&P500, DJ Eurostoxx50, Topix) emerging equities (iShares MSCI Emerging Markets), commodities (S&P GSCI total return), real estate (FTSE Epra Europe), corporate bonds (iShares Corporate Bond) and sovereign bonds (iBoxx Sovereigns and Eurozone Total Return ETF). The methodology favours assets with a higher Sharpe ratio.
Nomura International, which is managing the product, expects a minimum of €10m in order to launch the fund.
The Irish-domiciled fund carries a capital guarantee fee of 1.1% pa and a 1% pa management fee. Minimum investment is €1,000 and the product is available until 10 June 2011.
The underlying strategy is currently available to retail investors in Ireland, the UK and The Netherlands but the capital protected version is available via Ireland.
This product will appear shortly in Recent Additions (Ireland, UK and The Netherlands).