Neuberger Berman has launched a foreign exchange fund that it says will give investors a low correlation to other asset classes.
The Neuberger Berman Macro Opportunities FX fund aims to deliver positive gross returns of 5-6% per annum in excess of cash by looking for “relative value” opportunities across G10 currencies.
The fund’s investment strategy has a track record of producing returns with a low correlation to equities, bonds and alternatives, the firm says, and can demonstrate strong resilience in adverse market conditions.
Discretionary factor weightings are applied across country-specific indicators – such as growth, capital flows, stability and monetary policy. This means the team can determine the fundamental value for each currency.
Ugo Lancioni, Neuberger Berman’s head of currency management, is the portfolio manager and works with a team that invest $10 billion in active currency strategies.
Lancioni said: ““With the ever-changing geopolitical landscape, the FX market will continue to provide relative value opportunities, which we are looking to capitalise on through a disciplined fundamental investment process. Our strategy is designed to be resilient in adverse market conditions and offers a perfect complement to traditional asset classes in investors’ portfolios.”
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