ANZ Group ANZ.AX and Blackstone BX.N have jointly launched a new wealth management fund in Australia targeting the lender's private clients, the country's fourth-largest bank said on Thursday.

The new investment vehicle, named Graphene Alternative Fund, will be managed by Blackstone and will adopt an absolute return strategy, aiming to attract the nation's richest families.

An absolute return fund uses various investment strategies and asset classes to generate positive and steady returns, regardless of market conditions.

The launch forms part of ANZ's efforts to tap into the $3.5 trillion intergenerational wealth transfer projected to occur in Australia over the next two decades, as per the country's Productivity Commission.

"The strategy culminates a broader change to ANZ Private's strategic asset allocation, which includes a doubling of our allocation to alternative assets," said Lakhsman Anantakrishnan, chief investment officer of ANZ's private banking unit.

The fund will be overseen by Joe Dowling, global head of Blackstone Multi-Asset Investing (BXMA), and David Ben-Ur, chief investment officer of BXMA's absolute return arm.

(Reporting by Aaditya Govind Rao in Bengaluru; Editing by Savio D'Souza and Mrigank Dhaniwala)