Investec Asset Management has revamped its currency fund offering to appeal to investors seeking alternative ways of generating returns with relatively low volatility in a difficult climate.
The Luxembourg-based Investec GSF Managed Currency fund has been renamed as the Investec GSF Currency Alpha fund. US dollar and Euro share classes will now sit alongside the existing sterling share class.
The absolute return, cash-plus product will target returns through active currency management. Fund managers have an internal target to provide 2-3% p.a. gross return over the relevant LIBOR benchmark.
The fund is aimed at more conservative fund of funds plus investors looking for an alternative cash-plus strategy in any of the three currencies.
"Following the recent interest rate cuts by the Bank of England, base rates now stand at 1.50% and may be heading lower. By actively managing currency we seek to generate returns of 2-3% in excess of what investors would receive on money funds, an attractive proposition in this declining interest rate environment," says David Aird, managing director, UK distribution at Investec Asset Management.
‘Most significant’ upgrade since launch
Changes happening over coming months
Had accepted British Steel business
Aimed at HNW clients and family groups
Set for 1 April 2019