Architas Rock gets real with new fund

Infrastructure, commodities, forestry, aircraft leasing and specialist property are all part of the universe for Architas Diversified Real Assets Fund, launched this week for CIO Caspar Rock.

Architas Rock gets real with new fund


Targeting a yield of at least 3.5%, the fund of funds includes initial holdings in the likes of Amundi Absolute Volatility, Twentyfour Monument Bond Fund, Pictet Timber and Catco Reinsurance Opportunities. 
Another holdings is in International Public Partnerships Fund, which invests in public infrastructure projects such as schools and hospitals. Payments received are contractually linked to inflation, and Rock believes this adds an element of inflation protection to the portfolio. 
Similarly the John Laing Environmental Assets Fund invests in environmental assets including wind and solar farms that receive two sources of income: inflation-linked subsidies from the Government and the revenue for selling electricity in the wholesale market. When inflation is increasing due to rising energy prices, Rock says these investments will be a direct beneficiary.
“The attraction of real assets has been increasing at a time when equity yields have fallen and bond prices look vulnerable to potential interest rate rises,” he said. 
“The underlying assets in this fund have demonstrated lower correlation to equities and bonds, and so offer real diversification benefits for investor portfolios.
"This fund also offers access in a daily-traded format to assets that are not as widely available in the retail market but that we at Architas have been researching and using for a number of years. As such we believe this fund offers something genuinely different for advisers and their clients.”



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