Index Plus delivers institutional investors with guaranteed alpha, over an agreed index, with zero fees. The strategy provides a strategic advantage for institutional investors seeking to achieve excess returns in a highly competitive and fee sensitive environment.
Index Plus is available as a daily liquid (pooled with other investors) or fixed term (custom wholly owned mandate) option and can be used either as an effective substitute for traditional passive funds, or as a complementary solution to active management in your portfolio. By offering a guaranteed alpha over an index, this strategy can make a significant contribution to an investor’s realised total returns. It can also assist institutional investors in reducing total investment management fees.
The level of guaranteed alpha is determined by two key factors: index selection and term of investment. This solution offers significant index flexibility providing exposure to:
- Equity markets
- Fixed income
- Cash
Index plus overview
Strategy objective
The investment objective of the strategy is to provide investors with exposure to the performance of an agreed index plus guaranteed alpha for zero management fees.
Suitable for
Institutional investors and insurers seeking:
Stable and consistent alpha – provides certainty of benchmark outperformance
To reduce management fees – helps lower investment costs for better outcomes
Effective liability immunisation strategies – assisting DB schemes to remove risks
Capital efficient return enhancement – with no additional asset risk charge
Key features
Guaranteed alpha
Zero management fees
Zero tracking error
Flexible choice of index
Insights
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An introduction to alternatives investing
