Wednesday, 29 June 2016
Last updated 9 hours ago
Feb 9 2011 | 9:16am ET
Schroders has launched two UCITS III-compliant absolute return currency funds.
The Schroder ISF Absolute Return Currency USD and the Schroder ISF Absolute Return Currency EUR aim to offer both institutional and retail investors low-risk cash plus returns from actively managed currency portfolios.
Clive Dennis, head of currencies at Schroders, and Hardeep Dogra are the fund managers and will use a broad range of global cash instruments and currencies to generate absolute returns. The Schroders currency team will use both long and short exposures and their investment universe includes over 30 different currencies, which offer both high liquidity and diversification opportunities.
Schroder’s says the case for currency investing is compelling from “a diversification perspective” as the correlation to other asset classes is low. The firm also suggests currencies offer an alternative to cash deposits and government bonds.
Said Dennis: “We believe there is scope for much higher yields globally as central banks are forced to restructure monetary policy, but at varying speeds. Both these funds enable investors to benefit from the consequent currency investment opportunities and maintain the assurance of a low risk and high liquidity proposition. Our approach is unlike typical currency funds that tend to be highly leveraged.”