The Investedge Ucits Sicav, an open ended investment company established last year, is authorised and regulated by the Malta Financial Services Authority.
The new fund, launched last last month, is called the Algo Performance Fund and will take long and short positions principally in the US dollar, euro, British pound and Canadian dollar markets using financial derivative instruments. Leverage is restricted to 15 times the net asset value of the fund.
“The Fund is a new entity established to capitalise on opportunities in the foreign exchange market for the private investor,” Investedge said on its website. “As a regulated Ucits Fund, investors are granted no small amount of assurance regarding liquidity, strict adherence to risk controls and careful observance of volatility.”
The Algo Perfromance Fund aims to achieve returns with a low correlation to asset classes such as bonds, equities and hedge funds and will begin active trading upon reaching the minimum level of €5m (£4.2m, $5.6m).
The company also said it employs the “Quantaur Algo FX Managed Program Strategy”, which has been structured to utilise several automated algorithms that trade major global currencies.
Algo Performance theory analyses short to medium term historical price movements of a currency and attempts to preempt future trends and reversions by comparing a currency’s current price to its past prices.
The investment manager is Quorum Capital, a private company based in London which has links to two of the directors of Investedge.
There is no entry charge for the fund but it has an exit charge of up to 5% for the first five five years. Ongoing charges are 1.5% and there is a 20% annual performance fee based on Net New Appreciation (NNA).
This net new appreciation is calculated monthly and compared with the highest level in the pevious smonth to determine if the fee is paid.
Investors can invest directly, through a portfolio bond or via a recognised fund platform. The Fund can fit into a SIPP, SSAS or QROPS pension structure but all investors must be introduced by an independent financial adviser, wealth manager, or discretionary investment manager,