Julius Bär has launched a directional fixed income and currency hedge fund managed by Andrew Snowbal...
Julius Bär has launched a directional fixed income and currency hedge fund managed by Andrew Snowball and Adrian Owens, who aim to return investors 13% to 17% above Libor.
The Julius Bär Global Rates Hedge Fund will draw on Julius Bär's experience running fixed income since 1983, and foreign exchange as well.
"The firm's style is very much top-down economic fundamental themes of key building blocks," said Owens, "which arguably suits itself to macro hedge funds."
The managers will seek to understand the key drivers behind the markets - be they interest rates, growth expectations and so forth - and note when those drivers may change.
He added there were times when Julius Bär's existing Diversified Fund may not have been able to exploit strong directional views, hence the new macro directional fund with higher VaR levels.
Investor demand and closure of the $1.2bn Diversified Fund also spurred the new fund's 1 April launch, Owens said. An economist by training, he labelled the management approach "eclectic and pragmatic."
"Economic fundamentals can take a very long time to show in the markets, so you need to overlay those views with a lot of other factors," he said.
In fixed income, the fund is more focused on Hungary, Mexico and Poland, which Owens said are higher grade than Argentina for example.
Foreign exchange, across all markets but focused more on G13, can occupy up to 12% of fund VaR.
Joint life second death option added to relieve tax burden on couples gifting assets
Backed by Schroders, LGIM and the IA
New system for funds without without three-year track record
Clients to be compensated by end of 2018
Rolled out to 25 schemes next month