Clime Investment Management has partnered with Sequoia to launch a new fund that aims to provide a yearly income of 8%.
The Clime Income Enhancer Series 1 fund will invest in four shares: Macquarie, Rio Tinto, Treasury Wines and BHP.
"If any of these shares move within the 40% cost range, capital is guaranteed. If one of them goes under 40%, a call [is triggered]," Clime chief operating officer Sarah Bolouri said.
The new fund is a white-labelled solution from Sequoia Investment Specialists, with Bolouri adding that it may look at launching other products with Sequoia in the future.
Clime chief executive Rod Bristow said the fund manager had not set a minimum raise.
"We haven't done this sort of product before, so it is hard to say. It is for wholesale clients only and we have had good response so far from our private wealth clients in investor road shows," Bristow said.
Clime had $961 million in funds under management at end of September. The biggest share of this is in managed accounts ($462 million), followed by $357 million in managed funds and mandates and $142 million in its listed investment company.
It reported an underlying cash profit of $3.2 million, up 46% from previous year's $1 million.