Scottish Widows Investment Partnership (Swip) has launched a new Currency Alpha fund, which aims to offer investors consistent returns and diversification through bonds and equities.
The fund will take advantage of opportunities in the currency markets and will be based on a quantitative model which Swip has run internally for the past three years, delivering a strong track record.
Swip said that the new fund will maintain exposure to a diversified portfolio of developed market currencies, including sterling cash assets. It will be denominated in sterling but with the provision to add euro share classes.
The Currency Alpha Fund will be a limited issue fund with capacity restrained at £400m (€476.6m) and will operate with a performance fee.
Roddy Macpherson, investment director, currencies, will be managing the new fund. He said: “In today’s markets you need a more flexible investment approach to seek out the most attractive total returns by identifying opportunities across the currency markets.
“There is definitely appetite for such a fund in the discretionary market, where investors are looking for currency exposure with solid returns.”
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