Australian independent platform provider HUB24 has added the FQ Global Alternative Return Fund (the “Fund”), an Australian unit trust managed by First Quadrant LP (“First Quadrant”), an Affiliate of Affiliated Managers Group, Inc. (NYSE: AMG), to its comprehensive range of investment options.
The Fund, launched in 2014 and available to financial advisers and wholesale investors, is a liquid alternative strategy that invests in developed currency markets and seeks to deliver positive returns over full market cycles.
“Investors are increasingly looking for alternative sources of non-equity return to provide true diversity to their portfolios,” said Max Darnell, Managing Partner and Chief Investment Officer at First Quadrant. “We are pleased that HUB24 is responsive to the growing demand from investors for access to quality alternative investment options. Diversification is a strong theme currently resonating with investors at a time when equity markets are near all-time highs, and bonds and cash yields are uninspiring.”
Mr. Darnell added, “With an underlying strategy dating back to 1992, the FQ Global Alternative Return Fund is seeing increased interest from Australian investors. The recent uptick in demand appears to be driven by the ongoing search for positive returns in an environment where those generated by other major asset classes are limited. For some investors, the Fund can provide a hedge to low- or negative-return equity markets at a reasonable cost.”
With a minimum investment of $25,000, the Fund targets a risk-managed return exceeding the Reserve Bank of Australia Cash Rate plus 4 per cent.
Cameron Dickman, Director, AMG Australian Distribution, commented, “Advisers in Australia have been searching for solutions with truly diversifying traits at a time when traditional asset classes have underperformed. Advisers are increasingly recognizing that actively-managed currency products – in contrast to those passively purchased through equities – can provide a counterbalance to traditional assets.”
Mr. Darnell concluded, “Currency represents a significant portion of liquid alternative allocations. The strategy is driven by fundamental economic research capturing mispricing opportunities in major market currencies. We believe that investors seeking uncorrelated returns would be well-advised to consider currency strategies.”