LRI Group, in partnership with Feri announced that the Feri OptoFlex fund has exceeded €1bn assets under management (AuM), five years after the fund was launched in December 2012 on the LRI Ucits Platform. The capital invested in the fund is raised from both institutional and private investors.
OptoFlex is a daily liquidity fund in a Ucits V regulatory framework. The innovative investment strategy developed by Feri is based on selling puts on the S&P 500 Index and investing part of the received premium into a hedging strategy comprising derivatives on the US stock and volatility market. This is designed to protect the investment fund against severe price slumps. And indeed, this hedging strategy proved its worth during the recent downturn on the stock markets.
Carsten Hermann, managing director at Feri Trust GmbH commented: “During periods of sharply increasing volatility, OptoFlex constructs an effective defence mechanism against falling stock market prices. The concept therefore offers clients an investment that behaves in as stable a manner as possible, largely unaffected by movements on the capital markets over the medium term.”
Since its launch, the investment fund’s institutional unit class has achieved an overall growth rate in excess of 24% (i.e. over 4.3% pa) while experiencing very little volatility.