Netherlands-based Navica Capital Management has launched a EUR50m private placement of the Navica Currency Alpha Certificates in response to growing demand for direct investments into mana
Netherlands-based Navica Capital Management has launched a EUR50m private placement of the Navica Currency Alpha Certificates in response to growing demand for direct investments into managed currency products.
During pre-marketing the firm received capital investment interest for the certificates of nearly EUR15m. The certificates provide investors with high liquidity, low entrance and securitised access to the firm’s actively managed currency alpha strategy.
The certificates, which will be issued through Deutsche Bank, are the first step in the manager’s initiative to offer professional investors access to a diversified set of advanced proprietary investment strategies.
The certificates will to deliver absolute returns by allocating capital through active positioning in the global currency market, based on Navica’s currency investment process.
The private placement of the certificates is part of a first round of capital-raising that seeks to as much as EUR100m through the Deutsche Bank FX-Select platform, with the additional EUR50m capacity open for subscription through institutional total return swaps and managed accounts linked to the strategy.
‘Investor interest in currencies as a separate asset class is growing rapidly as they become aware of this potential source of alpha and low correlation with traditional asset classes such as equities, bonds and commodities,’ says a Navica spokesman.
Navica says the currency alpha strategy has delivered consistent high alpha with low beta exposure to various asset classes and other alternative investment strategies.
‘We see strong demand from funds of funds, investment managers and institutional investors for direct investments into actively managed currency products,’ the spokesman says. ‘With this new vehicle and the additional tailor-made solutions we can offer through the Deutsche Bank platform, we are well placed to meet our clients’ needs.’