Mellon Global Investments has strengthened the range of its Dublin-domiciled Mellon Global Fund with its launch of the Mellon Evolution Currency Option Fund.
The recent launch seeks a gross return of 15 percent per year by using liquid OTC currency options to exploit movement in the world currency markets.
Back tested returns of the fund delivered an annualised gross return of 16.6 percent.
The new fund will be managed by Pareto Investment Management, a Mellon subsidiary. The currency option fund is the second addition to the Evolution range, which is designed to provide investors with strategies that are normally only available through investing in hedge funds.
“This option-based absolute return currency strategy provides investors with a new source of alpha in an accessible vehicle that taps into the broader powers granted under UCITS III,” says Alan Mearns, CEO of Mellon Global Investment. “We believe this is a truly innovative offering from one of the world’s largest currency managers.”
“This new strategy is a culmination of Pareto’s academic excellence and 15 years’ experience of monitoring, evaluating and investing in global currency markets,” says Mike Shilling, CEO of Pareto Investment Management. “Using daily spot differences and option pricing as part of our quantitative approach helps us to interpret the market and seek the investment signals that we need in order to take advantage of distorted market conditions. Pareto’s contrarian approach to investment differentiates us from other currency strategies in the market.”