Aequam Capital, an independent, French, quantitative fund manager, has announced the launch of the “Aequam Currencies Fund,” a UCITS III compliant, systematic, multi-currency fund. Available in two currencies (Euro and US Dollar), it is uncorrelated to bond and equity markets. It has a volatility target similar to that of equity markets though and is particularly adapted to investors’ constraints.

The “Aequam Currencies Fund” is managed by Lionel Lefebvre, Arnaud Chrétien and Alonso Rivas. The fund targets investments from professionals such as private banks, multi-managers, institutions, treasuries and family offices.

Investing in a universe made up of the G10 currencies and 9 emerging market currencies, “Aequam Currencies Fund’s” performance is based on four drivers:

1 - Trend following (identification of currency pair trends),
2 - Carry trade (taking advantage of short term differences in interest rate spreads between two currencies),
3 - Evolution of the dynamics of interest rate movements,
4 - Risk appetite (a proprietary indicator measuring the evolution of investor appetite for risk). If the indicator shows that risk appetite has increased, the three previously mentioned strategies are used. If the indicator shows an aversion to risk, the quantitative process uses contrarian strategies to target the long-term average value of each currency pair.