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.”
Note: The Responsible Entity for the Fund is Perpetual Trust Services Limited. RBC Investor Services Trust has been appointed as the Custodian and Administrator for the Fund.
HUB24 is a financial services company listed on the Australian Stock Exchange (ASX: HUB). The business is focussed on the delivery of the HUB24 platform and the growth of its wholly owned financial advice licensee, Paragem. The HUB24 platform supports the achievement of superior superannuation and investment outcomes for investors. It is a next‐generation service with state‐of‐the‐art portfolio management, transaction and reporting solutions for licensees, financial advisers, accountants, stockbrokers and institutions. HUB24 is not aligned to any major bank, manager or institution. HUB24 is an independent organisation with award winning technology and a growing number of respected and high profile financial services companies as its customers.
For further information, please visit: www.hub24.com.au
About First Quadrant
First Quadrant is an innovative investment management firm specializing in alternative approaches to global investing. Employing a highly disciplined, risk-controlled approach designed to deliver consistent, long-term results, the firm adds value by combining a rigorous analysis of macroeconomic fundamentals with a thorough understanding of the dynamics that drive shifts in investor preferences for assets. The firm provides investment management services to institutional investors around the globe and manages a range of separate accounts, commingled funds, and UCITS funds. First Quadrant offers solutions aimed at diversifying returns, return enhancement and risk mitigation in several broad areas to help meet client needs.
First Quadrant is a U.S. Securities and Exchange Commission registered investment adviser and provides financial services in Australia under ASIC Class Order 03/1100, which exempts First Quadrant from the requirement to hold an Australian Financial Services Licence in respect of financial services provided by it or its representatives to Wholesale Clients on certain conditions. First Quadrant is regulated by the applicable laws of its home jurisdiction which may differ from the applicable laws in Australia.
For further information, please visit: www.firstquadrant.com
AMG is a global asset management company with equity investments in leading boutique investment management firms. AMG’s innovative partnership approach allows each Affiliate’s management team to own significant equity in their firm while maintaining operational autonomy. AMG’s strategy is to generate shareholder value through the growth of existing Affiliates, as well as through investments in new Affiliates and additional investments in existing Affiliates. In addition, AMG provides centralized assistance to its Affiliates in strategic matters, marketing, distribution, product development and operations. As of March 31, 2016, AMG’s aggregate assets under management were approximately $642 billion in more than 500 investment products across a broad range of investment styles, asset classes, and distribution channels.
For more information, please visit: www.amg.com