Risk barometer to measure income returns

The Moneyfund is a closed end vehicle with a five year term and is expected to give investors a 7% annual return, plus a kicker which is designed to increase the annual return to 12% annually over the term of the investment.

The fund is quite different to other income offerings in the market. Essentially Liontamer is buying a structured note issued by Deusche Bank which invests in the bank’s Dynamic Carry Index which makes gains from movements in currencies and interest rates around the world.

Liontamer head of investment solutions Janine Starks describes the fund as one which chases yields around the world.

It invests in countries which have high interest rates and then borrows from other countries that have low rates.