Inflationary pressures and rising real interest rates have changed the dynamics of the market. Standard approaches to diversification are challenged and investors may need to think differently in looking to generate returns similar to those enjoyed in recent decades.
We believe, now is an opportune time for investors to consider adding tactical asset allocation alpha or macro strategies to portfolios. Such strategies can be characterised by top-down approaches that are unconstrained by asset class, retain the ability to go directionally long or short, and drive returns and diversification by being responsive to changing market conditions.
The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested.
We believe that, in a volatile and ever changing world, the ability to be tactical and responsive to changing markets can be an important driver of portfolio performance.
We seek to invest where we have highest conviction. Fund exposures will be concentrated in long or short broad markets (often through liquid index futures) where we see the greatest asymmetries between what the accepted consensus and shifting fundamentals.
Source: 2023 UCITS Hedge Awards by @TheHedgeFundJournal.
A Luxembourg SICAV UCITS daily-liquid multi-asset global macro strategy Fund
Focus: Global, Dynamic, Conviction Based
Directional long or short positions
Experienced team across multiple market cycles, with lead manager since strategy inception.
Focus on Absolute return
Target performance: SOFR + 4-8% over any
This is a marketing communication. Please refer to the prospectus and to the KIID before making any final investment decisions.
The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.
Investments in bonds are affected by interest rates, inflation and credit ratings. It is possible that bond issuers will not pay interest or return the capital. All of these events can reduce the value of bonds held by the fund.
The fund can be exposed to different currencies.
Movements in currency exchange rates may adversely affect the value of your investment.
The fund may use derivatives to profit from an expected rise or fall in the value of an asset. Should the asset’s value vary in an unexpected way, the fund will incur a loss. The fund’s use of derivatives may be extensive and exceed the value of its assets (leverage). This has the effect of magnifying the size of losses and gains, resulting in greater fluctuations in the value of the fund.
The fund may be highly concentrated at times in a limited number of investments or areas of the market, which could result in large price rises and falls.
Investing in emerging markets involves a greater risk of loss as there may be difficulties in buying, selling, safekeeping or valuing investments in such countries.
The hedging process seeks to minimise, but cannot eliminate, the effect of movements in exchange rates on the performance of the hedged share class.
Hedging also limits the ability to gain from favourable movements in exchange rates.
In exceptional circumstances where assets cannot be fairly valued, or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.
The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.
Operational risks arising from errors in transactions, valuation, accounting, and financial reporting, among other things, may also affect the value of your investments.
Further details of the risks that apply to the fund can be found in the fund’s Prospectus.
For any performance shown, please note that past performance is not a guide to future performance. The views expressed in this document should not be taken as a recommendation, advice or forecast. Please note, investing in this fund means acquiring units or shares in a fund, and not in a given underlying asset such as a building or shares of a company, as these are only the underlying assets owned by the fund.