A specialist currency manager has launched a fund intended to generate positive performance over periods of stress in the Eurozone.
Seeded by money from Record PLC, the Record Euro Stress Fund launched by London-based Record Currency Management is believed to be the first of its type and “draws on specific areas of expertise within Record”, in particular currency risk management and drawdown controls.
It is a response to the commercial potential in capitalising on the wide range of views in the market on the long-term viability of the euro in its current form.
This range of views encompasses a Eurozone fracture at one end, to full political, monetary and fiscal union at the other. Irrespective of the ultimate outcome, Record believes that uncertainties lie ahead which will mean further stresses for the currency union. The fund will seek to provide an optimal investment strategy for these scenarios, with constrained downside, unconstrained upside and a horizon of up to five years.
Examples of Eurozone stress may include re-structuring or default of national debt in countries such as Greece, Portugal and Ireland, or fears that members may leave or the Eurozone may split.
Bob Noyen, chief investment officer of Record Currency Management, said: “The Euro Stress fund has a unique strategy and approach aimed at enabling a range of investors to generate value from Eurozone stress. We see a specific window of opportunity over the next few years that the Euro Stress Fund is seeking to exploit.”
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