Neuberger Berman is launching a new FX-focused macro fund.
The Neuberger Berman Macro Opportunities FX Fund aims to deliver positive returns of 5–6% in excess of cash per annum before fees, primarily by exploring relative value across G10 currencies. The firm says that the fund’s investment strategy is based on an established process, which has a track record of producing returns with a low correlation to equities, bonds and alternatives, demonstrating particularly strong resilience in adverse market conditions.
Ugo Lancioni, Neuberger Berman’s head of currency management, is responsible for the fund, with additional support from a dedicated team of five investment professionals.
The fund’s investment process is fundamental by nature, utilising an established proprietary framework for analysing relative value opportunities across major global currencies. The team applies discretionary factor weightings across country-specific indicators such as growth, capital flows, stability and monetary policy. Neuberger Berman says that this process allows the team to determine the fundamental value for each currency, identify any potential price dislocation, understand market drivers and subsequently decide on investment positions.
Dik van Lomwel, head of EMEA and Latin America, says: “As the low yield environment continues, investors are increasingly seeking differentiated investment solutions capable of generating uncorrelated returns. Ugo’s team manages close to $10 billion in active currency strategies and has been generating strong absolute returns for more than a decade.”
Lancioni, head of currency management, adds: “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.”