Investment manager Neuberger Berman has launched a currency-focused macro fund.
Neuberger Berman Macro Opportunities FX fund will explore relative value opportunities across G10 currencies and will apply discretionary factor weightings across country-specific indicators such as growth, capital flows, stability and monetary policy.
The fund, which will be managed by Ugo Lancioni - head of currency market at the firm -, aims to deliver positive annual returns of 5-6% in excess of cash before fees.
As the low-yield environment continues, investors are increasingly seeking differentiated investment solutions, capable of generating uncorrelated returns."
Its 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.
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. 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 at Neuberger Berman, said: "As the low yield environment continues, investors are increasingly seeking differentiated investment solutions, capable of generating uncorrelated returns. Ugo's team manages close to $10bn in active currency strategies and has been generating strong absolute returns for more than a decade."
Ugo Lancioni, head of currency management, added: "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."
Ugo Lancioni, Managing Director, head of Currency Management at Neuberger Berman, serves as a co-portfolio manager on multiple fixed income strategies including the Neuberger Berman Diversified Currency Fund. He is a member of the senior investment team that sets overall portfolio strategy for the firm's Global Investment Grade strategies. Ugo also leads the Currency team in determining FX exposures across various portfolio strategies.