The New Zealand-domiciled Pure Capital is set to launch its Pure Protection Fund on 1 July.
It provides protection to portfolios in falling equity markets and promises to enhance performance in rising ones. The firm is also working on developing new foreign exchange protection products.
Pure Protection can either act as an overlay or as a standalone product. The firm has been running a similar strategy as a managed account since 2007. The portfolio generated cash returns of 79% in 2008, and 21% so far in the year to date. The fund's performance is weakest in sideways markets.