The group says the funds will enable investors to tap into the upside of capital growth in global equities without being affected by wide moves in cross-currency exchange rates.
Both funds will aim to hedge foreign currency exposure back into sterling on the underlying investment portfolio to the value of approximately 85-95 per cent with a target level of about 90 per cent. It also has the ability to reach 100 per cent hedge position.
Sarasin & Partners managing partner and chief investment officer Guy Monson says: “We have long been proponents of investing in global equities rather than relying solely on an investor’s local domestic market. Investing globally avoids concentration risk and improves diversification. The universe of attractive stocks, too, is simply much wider. Moreover the dividend stream from an international equities portfolio is far more diversified than that purely derived from UK equities where there is also surprising concentration risk.”