Trust Group, country's full-service financial house, has launched its second scheme under Athena Investments, a category III Alternative Investment Fund (AIF). Named as Athena Enhanced Equity Fund (EEF), this is is an open-ended long-only equity AIF. This AIF is focused on improving equity returns by using a core-satellite approach to investing, Athena Investments said in a statement.
The core portfolio will comprise of high pedigree secular growth businesses which have pristine financials and shareholder focused managements to generate consistent compounding returns. More than 70 percent of the portfolio shall be invested in large-cap companies for most periods of time, it said.
The satellite portfolio shall utilise option strategies to enhance the yield on the existing portfolio/cash investments and to tactically increase/decrease allocation to portfolio companies.
The fund has no lock-in and no exit-load with a monthly exit option for investors. The objective of this fund is to generate an alpha of ~3 percent over the long only equity portfolio, the fund house said.
The investment universe of EEF is the top 200 listed companies by market-capitalization. A filtration process will be followed to identify the best ideas to invest. Portfolio weights and positions will be actively managed. Fundamental research is combined with a systematic investment approach via equity derivatives. The endeavor is to deploy proprietary derivatives strategies to generate an alpha over the long-only equity portfolio, it said.
Investors with a time horizon of greater than two years can look at investing in this scheme. The fund aims to raise capital from resident and non-resident Indians, high net worth individuals (HNIs), banks, accredited investors, corporates and trusts.
Vineet Bagri, CEO, will manage Athena Investments AIF. He was the Managing Partner of Trust Plutus Wealth (India) Pvt Ltd and has over 24 years of experience across banks, NBFCs and advisory.
On the launch, Bagri said, “The EEF is our second offering which helps clients invest into a long-term portfolio of high quality companies whilst using
proprietary strategies in the F&O space to generate an alpha. We believe that this will bring a differentiated alternative to listed equity investments and products to investors. We are planning to raise Rs 1,000 crore in the first year. This is an open-ended fund and we will be accepting subscriptions till we believe that the expected returns are not compromised due to investment velocity.”
