Martin Currie plans to adds a hedged sterling share class to its 500m North America fund as a way of reducing currency risk.
The addition of the hedged share class follows changes made to the Coll (collective investment schemes) rulebook on March 6. This brought British rules into line with key European jurisdictions, namely Ireland and Luxembourg, which already allow hedged share classes to be offered in a fund.
Toby Hogbin, the head of product development at Martin Currie, says: Prior to this rule change it was not possible for investors to access a single sterling denominated fund investing overseas and have a choice of whether to hedge or accept currency risk unless the investor traded currencies outside the fund. The proposition can only benefit investors.
While Hogbin says that Martin Currie is actively planning to add the share class to the fund, managed by Tom Walker, he says he cannot be tied to a timeline on when it will happen.
There are complexities as to how to make the hedging work and in determining the process to follow for existing and new investors, he says.
The Financial Services Authority will also have to approve the share class.
Meanwhile, Andy Sowerby, Martin Curries managing director, told Fund Strategy that the group is working to expand its investment capabilities.
We have grown our market share significantly and have leading propositions in America, Asia, Japan and global equities. However, we have just 11 funds in our Oeic range and have room to add further products.
We are open to have discussions with active equity managers who have a proven track record of performance and asset raising.