The Highbridge Diversified Commodities Fund, launched in March 2011, was originally offered with the US dollar as a base currency, but JP Morgan AM says the alternative share class reflects growing concerns over currency risk among investors.
“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,” said Jasper Berens, head of the UK intermediary business at JP Morgan AM.
“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.”
