Combining the benefits of structured products with the convenience of a VCC fund
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Targeting stable long-term equity-like returns with reduced volatility
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Transparent and investor-aligned fee structure
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Professional management of market risks and product lifecycle with monthly liquidity
ICH Asset Management (ICHAM), a leading regional multi-family office and asset manager, announced the launch of the ICHAM Defined Growth Fund, Asia’s first open-ended fund dedicated to autocall structured products, available exclusively to accredited and institutional investors.
The fund is designed to supplement diversified equity portfolios by seeking capital growth of approximately 9% to 10% annualized in US dollars, which is a target, with lower volatility and market beta than global public equities.
Structured as an open-ended Singapore Variable Capital Company (VCC) subfund, the ICHAM Defined Growth Fund combines the attractive return potential profile and downside risk management features of autocall investments with ongoing risk oversight, a transparent fee structure, and monthly liquidity. The fund, which reinvests coupons and proceeds from autocalled/matured investments, is offered in US dollar and Singapore dollar-hedged share classes.
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“We are excited to bring this innovative investment solution to the Asian market,” said Archan Chamapun, CEO of ICHAM. “Our fund addresses a significant gap in the market by providing accredited and institutional investors with access to a professionally managed portfolio of autocall structured products that were traditionally marketed by private banks as piecemeal investments with concentrated risks and opaque fees.”
Felix Chew, lead portfolio manager of ICHAM Defined Growth Fund said: “When looking to generate equity-like returns while staying true to a globally diversified strategy, an actively managed fund of index-linked structured notes not only diversifies equity and counterparty risks but also reduces “pin risk” by spreading out observation dates and levels. This potentially transforms structured products from an opportunistic investment to a scalable long-term solution for clients to harvest volatility for returns.”
Institutional Approach to Structured Product Investing
The ICHAM Defined Growth Fund takes an institutional approach to autocall investing by creating a laddered series of autocall investments linked to developed market equity indices.
This approach incorporates geographical diversification of equities, spreading out of market observation levels and dates as well as optimization of autocall pricing to market conditions. The result is more consistent returns over piecemeal purchases of autocalls linked to single stocks.
Capital preservation is an investment objective. The fund employs a systematic investment framework combining top-down regional allocation based on equity valuations and market conditions, with bottom-up structuring of autocalls to enhance the margin of safety against market downturns.
The fund invests into autocalls with highly competitive prices as an institutional buyer, while maintaining a balanced exposure to high quality investment grade-rated bank counterparties.
Compelling Cost Savings for End Investors
One of the fund’s most significant advantages is its transparent and aligned fee structure. Unlike traditional private banking structured product offerings that often embed high and opaque transaction fees, the fund charges a single ongoing management fee and does not earn upfront fees when entering autocall investments.
The fund’s fee structure is designed to reduce complexity and improve transparency for investors, compared to traditionally distributed autocalls which may embed high upfront fees with frequent autocall observations.
Designed for Private Wealth Distribution
Financial advisors will find the ICHAM Defined Growth Fund to be a powerful tool for client portfolio construction. The fund’s single-ticket solution eliminates the complexity and administrative burden of managing multiple individual autocalls, allowing advisors to provide sophisticated structured product exposure through a single, liquid fund holding.
From an operational perspective, the fund’s monthly liquidity and absence of lock-up periods and fund gating provide advisors with the flexibility to adjust client portfolios as circumstances change. The fund’s accumulation share class enables efficient wealth building, while its transparent fee structure and professional management help address common client concerns about structured products while providing some downside protection for conservative investors.
Interested investors can subscribe to the ICHAM Defined Growth Fund through ADDX, a CMS licensee and Recognised Market Operator regulated by Monetary Authority of Singapore, and a leading digital platform focused on private markets and alternative investments.
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