Australian fund manager Antares Capital launches a new fund that aims for lower-risk alternatives to cash investments.

Antares Capital, the Australian boutique fund management firm that is part of the MLC Group of companies, has launched a new fund designed to offer a lower-risk alternative to cash investments.

The Antares Income Fund aims to outperform the UBS Bank Bill Index by investing in a range of cash, domestic and global fixed income securities, depending on the current economic environment, said the firm in a statement. It is managed using the Antares Enhanced Cash Trust as its core strategy and has already received a "recommended" rating from research house Lonsec.

"Fixed income product aren't always easily understood by retail investors and maybe this has made them a less popular choice than equities. If investors are looking for regular income, strong liquidity, with a focus on capital preservation, the fund may be for them," said Ken Human, investment manager for Antares Capital.

The fund is available directly through Antares or on MLC Wrap and Navigator. It will be added to other platforms in early 2014.