Challenger launches Liquid Alternatives Balanced Fund

Media Release

Challenger launches Liquid Alternatives Balanced Fund

28 Oct, 2022

Challenger has launched the Challenger Solutions Liquid Alternatives Balanced Fund (the Fund), which seeks to deliver positive absolute returns in excess of the cash rate regardless of the market environment. 

The Fund is managed by Challenger’s newly-formed Solutions Group, which works with institutional clients to address their evolving needs, supporting both investment returns and retirement needs.

The Fund is first in a series of solutions being developed by Challenger’s Solutions Group, which will be available exclusively to institutional clients.

The Fund uses independent quantitative and qualitative analysis to identify risk premia, which is expected to provide consistent returns with low correlation to investment markets. The Fund will be managed by senior portfolio managers Marco Barchmann and Jerome Yim.

Underlying exposures in the Fund include strategies such as momentum, carry, value and volatility, and asset classes such as equities, fixed income, currencies and commodities.

The Fund is benchmarked against the RBA cash rate total return index and uses a combination of risk premia and cash strategies to provide additional returns. The Fund does not provide clients with a guaranteed return. Launched in July 2022, the Fund has delivered a total return (net of fees) of 5.2% in the first three months since inception1.

Josh Heller, Head of Challenger Solutions said: “The Challenger Solutions Liquid Alternatives Balanced Fund is aimed at meeting the needs of institutional clients who are seeking sophisticated investment options differentiated from traditional asset classes.

“By using systematic investment strategies to harvest risk premia from a broad range of asset classes and styles, which have low correlations to each other, we can provide clients with absolute returns complementing their investment portfolios.”

1Source: Challenger 14 October 2022. Past performance is not a reliable indicator of future performance.