Newscape breaks into currency market with Ucits launch

Newscape has launched a currency fund targeting 12%-15% return as it looks to build out a niche funds offering.

The boutique, which also has a Global Event Driven fund in the pipeline, said it is hoping to capitalise on mispricings caused by market psychology and achieve the annualised return in its Dynamic Rates and Currency fund.

Volatility is expected to be around 10% and the Ucits fund will offer GBP, US dollar, swiss franc and euro share classes.

The fund brings Newscape’s suite up to three and joins its existing Diversified Growth and Strategic Fixed Income funds, while a Global Event Driven fund is also on the cards.

The currency fund will invest in currencies and interest rates of OECD countries and will be managed by Newscape chairman and chief investment officer Philippe Bonnefoy.

Chief executive officer Stephen Decani (pictured) recently talked to Wealth Manager on his ambitions to grow a specialist fund range, adding to its existing £380 million in assets under management through its model portfolio and institutional advisory service.

The currency fund comes as few investors were adequately exposed to currencies, which he considers the largest market in the world and has daily turnover in excess of $5 trillion and 25 times the value of the average daily volume of the US equity market.

‘The currency market offers an exciting investment proposition as the majority of participants are not profit-seeking,’ Bonnefoy added.

‘Central banks, sovereign wealth reserve managers, financial institutions, 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.’