Newscape Capital Group, the London based investment firm, has launched its third specialist Ucits fund.
The Newscape Dynamic Rates and Currency Fund will target an annualised return of 12 to 15 per cent with annualised volatility expected to be around 10 per cent.
The fund will invest in the currencies and interest rates of OECD countries and is Ucits approved with daily liquidity, offered in Euro, GBP, Swiss Franc and US Dollar share classes.
While many investors have a large exposure to fixed income and equity asset classes, few have any capital committed to active investment in the largest market in the world – currencies. The Newscape Dynamic Rates and Currency Fund will offer investors the opportunity to access this market in an extremely liquid and regulated format.
Stephen Decani, Newscape chief executive, says: “The currency market is the largest market in the world with daily turnover in excess of USD5trn, more than 5x the average daily volume of the US bond market or over 25x the value of the average daily volume of the US equity market. Philippe has spent over three years developing the quantitative strategy and models behind the fund and we are excited to be launching it to the market.”
Philippe Bonnefoy (pictured), the lead manager of the fund and Newscape’s chairman and chief investment officer, says: “The currency market offers an exciting investment proposition as the majority of participants are not profit seeking. Central banks, sovereign wealth reserve managers, financial institutions, importers, exporters and consumers primarily use the market to hedge or settle financial transactions. This creates many opportunities for those investors seeking to gain from these inefficiencies.”