Signet Group launches new Asian-currency share class
Signet Group, the absolute return multi-manager, has announced the first investor in its share class consisting of a basket of Asian currencies.
The manager, with $1.5bn in assets under management, said that a Swedish institutional client had become the first to use the share class.
Its funds are otherwise denominated in major currencies, but the new Asian Currency Index (ACI) share class is hedged to a pool of Asian currencies using HSBC’s new Asia Weighted Index.
The index includes the Chinese yuan but not the Japanese yen. Investors still subscribe in their base currency, but that is then hedged to the basket of Asian currencies.
Robert Marquardt, Signet’s chairman and co-head of investment management, said: “We believe Asian currencies will likely appreciate versus the G-4 fiat currencies in the medium term, acting as a store of value – and that interest-rate differentials will likely be higher in Asia as well. The new share class allows G-4 investors who share our view to express it in a way that was generally not possible before now, other than in equities.”
Tim Gardner, global head of sales, said: “Our investment process has always started with a top-down, 30,000-foot view of world. We got it right on the long-term rise of gold, and we hope to get it right here, too. We are happy to see that institutional investors are starting to agree with us.”