Skandia Investment Group is adding long-short fixed interest to the range of strategies found in its Alternative Investments Fund.
The move has been achieved by investment in the JPM Income Opportunity Fund and a reduction in exposure to infrastructure securities which has been a strong performer over the past 12 months.
The Skandia Alternative Investments Fund was created in June 2008 to give investors exposure to a wide range of alternative investments and complement their exposure to more traditional asset classes such as equities and fixed interest.
JPM Income Opportunity fund is managed by Bill Eigen, formerly of J.P. Morgan Asset Management’s hedge fund boutique Highbridge Capital Management, who seeks to generate alpha in an unconstrained way across the entire range of fixed income opportunities.
John Ventre (pictured), who manages the Skandia Alternative Investments Fund, says: “Infrastructure securities have performed well as long term inflation expectations have returned to a more normal level. However, while we still hold an allocation to infrastructure securities we’ve made it smaller to reflect that normalisation.
“We are constantly reassessing all the asset classes and managers to ensure their appropriateness and this new strategy will provide excellent diversification as well as potential for good returns within the fund.”
The JPM Income Opportunity Fund is now also being used by SIG’s long established but recently renamed and remodelled Skandia Diversified Fund.