The fund, which previously had a 10% allocation to foreign currency, will now invest in a variety of currencies including the US and Canadian dollars, Mexican and Columbian pesos, and the Korean won.
Foreign exchange investments will be made with a medium term, six to 12-month outlook into safe haven economies.
Despite fears of a weakening Sterling in 2012, the firm held off from increasing their foreign currency allocation due to the Eurozone crisis.
Now banks are starting to see inflows, particularly in Greece, and the dissolution of the Euro is no longer likely, the firm has made the move to ensure investors can make profits without having to rely on across the board gains in overseas stock markets.
Fund manager Peter Doherty said: “The pound is weaker than outsiders thought, and we believe that it needs to weaken in order for the UK economic picture to be more appropriately reflected.”
“The strategy is not predicated on the view that any one particular currency or country is likely to out-perform, and of course if the pound strengthens we are wrong and we lose money. That said, any loss will be managed within our overall risk framework of losing no more than 5% in any month.”
FE Trustnet currently ranks the fund as number one offshore Absolute Return fund, and second in the domestic sector. Since inception in September 2011, the fund has delivered a return net of fees of 23.4%, and an annualised return of approximately 16.6% per annum, according to FE.
