Scottish Widows Investment Partnership has launched a new currency fund under the management of currency investment director Roddy Macpherson.
The fund will offer exposure to portfolio of developed market currencies, such as sterling cash assets. The fund will be denominated in sterling but will have the ability to add euro share classes.
The currency fund is based on a quantitative model which Swip has run internally for the past three years. The fund will also have a limited capacity of fee £400m and will also have a performance fee.
Macpherson says: “In today’s markets you need a more flexible investment approach to seek out the most attractive total returns by identifying opportunities across the currency markets. There is definitely appetite for such a fund in the discretionary market, where investors are looking for currency exposure with solid returns.”