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Host Capital launches global currency fund
by Elsa Buchanan on Sep 09, 2013 at 10:37
Host Capital has launched a systematically-managed global currency fund.
The group claims the Host Capital Global Currency fund, which is structured as an Oeic and targeted at discretionary wealth managers and IFAs, is the first fully UK authorised and domiciled currency fund.
The fund will adopt a systematic modelling approach, investing in the Citi Carry & Value index, which itself invests in six underlying indices, providing exposure to a range of developed and emerging currencies.
Derek Taylor, who will manage the fund, has joined Host Capital from Taylor Associates, his own consultancy, to run the portfolio.
He has over 35 years’ experience in currency management, having become one of the youngest Midland Bank managers in its international division at the age of 22.
Taylor had spells at Midland Bank Treasury in the City, Lehman Brothers in New York. After that, he became heavily involved in the setting up and management of cross currency broking desks at money brokers, firstly at Tullet and Tokyo and then at Harlow Butler.
Taylor said in a statement: ‘Currency markets are fast moving, and to deliver attractive returns with low volatility requires a well thought through approach and strategy. We have worked closely with Citi to deliver a careful blend of currency investment strategies which we believe deliver predictable returns within a risk constrained environment.’
The annual management charge (AMC) for the standard A share class is 0.8% and 0.65% for the institutional B share class, with a minimum investment of £25,000 and £250,000, respectively.
Special discounted terms are also available for subscriptions received between October 1 to October 18 for standard C class shares and institutional D share class, with an AMC of 0.65% for a minimum investment of £25,000 for the first class, and an AMC of 0.45% with a minimum investment of £250,000 for the second.
Chris Finch, managing director of Host Capital, said that contrary to popular belief, currency markets are not dominated by 'currency speculators'.
'In fact the majority who play in this space are simply looking to hedge FX liabilities in one form or another. This provides us with a significant opportunity to actively invest in currency with a view to delivering capital returns.’
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by Danielle Levy on Dec 06, 2013 at 07:46