Principal Global Investors’ Macro Currency Group has launched the Principal High Alpha Currency Fund, a Dublin-registered Qualifying Investor Fund with 25 million of external seed capital. ?
The fund’s launch is in response to clients’ growing interests in the group’s higher alpha capabilities, with net inflows into the high alpha funds totalling $185 million in 2010. This brings total net inflows across the wider currencies business to $650 million for the same period.
Mark Farrington, managing director and portfolio manager of the Macro Currency Group, says: “We’ve seen strong inflows across our range of currency funds this year which has served to confirm ongoing investor interest in our fundamental currency style. Our latest client-driven launch shows that appetite for currencies as an asset class remains strong, as investors search for a source of consistent, uncorrelated alpha in an uncertain market.” ??
The new fund is a sub-fund of the Principal Global Opportunities Series and utilises the same fundamental discretionary investment process that the group uses to manage its other active absolute return portfolios. It has a target volatility of 25%, managed on a three year annualised basis, with an implied return target of 17.5%. The fund complements the 15% target return fund launched by Macro Currency Group in February with a further 10% target return fund set to be added on to the range in Q1 2011.
Nick Lyster, European CEO of Principal Global Investors, says: “Macro Currency Group’s goal is to offer high performance, absolute return strategies that give investors the confidence to increase their long term exposure to currencies. Simply using currencies as an overlay function to limit portfolio risk or for short term profiteering fails to capture the true value add of the asset class.” ??
Macro Currency Group is a traditional, fundamental discretionary currency and macro manager, with a forward looking investment style, which is generally uncorrelated to both a general currency manager universe, as well as within its fundamental peer group. It offers both leveraged and unleveraged Alpha and Overlay strategies.