Investment - Articles - Investor demand prompt launch of Sterling hedged share class


Investor demand prompts launch of Sterling hedged share class for Highbridge Diversified Commodities Fund

 Currency exposure still a concern for UK investors
  
 Highbridge Capital Management, LLC, the alternatives investment management organisation owned by J.P. Morgan Asset Management, has introduced a Sterling hedged share class for the recently launched Highbridge Diversified Commodities Fund following demand from investors.
  
 The UCITS III fund, which was launched in March 2011 gives investors the opportunity to gain exposure to pure commodities and has been offered with a base currency of US Dollar. It invests in the most liquid, major commodities, with a long bias, but also has the ability to short individual commodities should the fundamentals of that commodity appear unattractive. The fund gains access to commodities futures through the use of individual swaps on commodity indices, as well as swaps on sub-sectors and the broad market.
  
 Commenting on the introduction of the Sterling hedged share class, Jasper Berens, Head of the UK Intermediary Business at J.P. Morgan Asset Management said: "Currency risk remains a growing concern for investors and we have launched this as a direct response to the needs of our clients. The US Dollar has continued to weaken against Sterling for some time and although the last few months have seen the US Dollar strengthen somewhat, volatility between the currencies is likely to continue. Given this uncertainty, it is right to give investors, who are not prepared to be exposed to both market and currency risk, a choice between share classes to best suit their requirements. Equally, as the Fund gives investors exposure to commodities through a series of swaps that represent futures exposure, rather than investing in companies whose primary businesses are related to commodity markets, investors will only be taking commodity risk rather than equity and commodity risk together.
  
 Whether investors choose the hedged or unhedged share class, we believe the Fund is an innovative offering that will provide strong returns for investors over the longer term."
  
 The fund's management is entrusted to a team of six professionals who have deep experience investing in global financial markets and in the commodities area. Sassan Alizadeh PhD and Mark Nodelman CFA serve as the fund's co-portfolio managers. Sassan has a PhD in economics and a well published academic background with nearly two decades of experience in research and systematic trading. Mark, who has an MBA from New York University, has many years' experience in managing investments and previously traded a commodity strategy at Goldman Sachs Asset Management, where he spent more than ten years.

Back to Index


Similar News to this Story

Inheritance Tax raises almost GBP6 billion in 8 months
December’s update from HMRC shows that Inheritance Tax (IHT) receipts reached £5.7 billion through the first two-thirds of this financial year (April
PIC completes first Mosaic buyin with GCB Pension Fund
Pension Insurance Corporation plc (“PIC”) has concluded its first full scheme buy-in within Mosaic, PIC’s streamlined service for pension schemes with
Airways Pension Scheme complete longevity hedge with MetLife
The Trustees of the Airways Pension Scheme (“the Scheme”), Metropolitan Tower Life Insurance Company, a subsidiary of MetLife, Inc., (“MetLife”) and Z

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.