Schroders is to close its Currency Absolute Return fund, Wealth Manager can reveal.
The fund launched in January 2011, managed by Clive Dennis (pictured) and Hardeep Dogra with the aim of beating cash returns by investing in money-market instruments in any currency as well as currency-related derivatives for both long and short exposures.
Since inception, the US dollar version of the fund has returned 1.5% compared with 0.7% from its benchmark cash rate. The euro version has gained 2.3% through the same time, while its benchmark has risen by 1.5%.
The strategy contained just over £7 million. ‘Despite both funds having generated a positive absolute return since their launch, appetite from investors for these funds has been extremely limited,’ a spokesperson for Schroders told Wealth Manager.