Press Release: OAM Launches 2 New Currency Alpha Funds - 8 September 2009
Posted 08/09/09
Press Release Tuesday, 8 September, 2009
Overlay Asset Management launches two new currency funds:
Options and Multi-Strategy Funds
Currency investment manager Overlay Asset Management (“OAM”) confirms the launch of two funds, the SingleHedge Currency Options Fund and SingleHedge Multi-Strategy Currency Fund. The funds will widen the firm’s investment opportunity set and enhance its offering to institutional clients.
The SingleHedge Currency Options Fund aims to achieve capital growth by taking active positions on currency volatility in addition to the direction of spot foreign exchange rates. This sets it apart from traditional currency strategies which focus on directional views. A discretionary strategy, it is managed by Xavier Lefevre, Head of Portfolio Management and Trading, an experienced options trader. OAM expects its SingleHedge Currency Options Fund to be one of very few such funds available to institutional investors in the market today, and for it to deliver returns with a very low correlation to the majority of currency funds.
The Multi-Strategy Currency Fund is a feeder fund that seeks to deliver strong risk-adjusted returns through exposure to three underlying currency programs managed by OAM – Developed Markets Diversified Program*, Emerging Markets Currency Program** and the aforementioned currency options strategy. Investments into the underlying strategies are made through zero-fee share classes. There are therefore no layered fees meaning the multi-strategy fund is as competitively priced as OAM’s other products.
The SingleHedge Currency Options and SingleHedge Multi-Strategy Currency programs are also available as segregated managed accounts, with risk parameters and return targets tailored to the client.
Hélie d’Hautefort, Managing Director and CIO, said, “By bringing the SingleHedge Currency Options Fund and the SingleHedge Multi-Strategy Currency Fund to the market, we recognise the demand for absolute return funds that offer a broader, more diversified range of currency investment strategies than has previously been available. At the same time we hope to underline our role as a leading player in institutional currency management based on our track record of expertise and a reputation for innovation.”
“Looking at the SingleHedge Multi-Strategy Currency Fund in particular, its diverse range of underlying investment strategies with low correlation to one another should deliver risk diversification, consistent returns and an attractive information ratio.”
—ends—
For further information or to arrange an interview, please contact:
Quill PR
Emma Baldock / Fiona Harris
T: 020 7758 2237/2233
E: emma@quillpr.com/fiona@quillpr.com
Notes to Editors
*The Developed Markets Diversified Program, launched in April 2003, invests in seven developed markets currencies (USD, EUR, JPY, GBP, CHF, CAD and AUD) representing approximately 97% of the developed market currency trading volume)
**The Emerging Markets Currency Program, launched in November 2007, invests in USD and EUR and emerging markets currencies deemed sufficiently liquid by OAM’s investment team, namely: Argentina, Brazil, China, Czech Republic, Hungary, India, Indonesia, Korea, Mexico, Peru, Philippines, Poland, Romania, Russia, Singapore, South Africa and Turkey.
The SingleHedge Currency Options Fund Key Features
Currency share classes GBP, USD, EUR
Eligible instruments FX spot, FX forwards, FX Swaps, FX options (including both vanilla and complex options) plus cash management instruments.
Opens for subscription/ Weekly
redemption
Maximum ex-ante volatility 25% per annum
Fund domicile Dublin, listed on the Irish Stock Exchange
Inception date 19 June 2009
Net cumulative performance 1.88%
since inception
The SingleHedge Multi-Strategy Currency Fund Key Features
Currency share classes GBP, USD, EUR
Eligible instruments FX spot, FX forwards, FX Swaps, FX options (including both vanilla and complex options) plus cash management instruments.
Opens for subscription/ Weekly
redemption
Maximum ex-ante volatility 25% per annum
Fund domicile Dublin, listed on the Irish Stock Exchange
Inception date 19 June 2009
Net cumulative performance 3.42%
since inception
About Overlay Asset Management
Overlay Asset Management is the BNP Paribas Investment Partner that specialises in currency management. The firm was established in 1998 and has a successful 10 year+ track record in currency management. Overlay Asset Management provides currency management services including currency alpha programs as well as active and passive currency hedging services to institutional investors. The investment process is primarily based on proprietary quantitative models developed within the firm’s research team and implemented by an experienced investment management team. As at 31 August 2009, Overlay Asset Management manages in excess of GBP 11 billion in client assets.