P/E Global FX Alpha FundSeeking long-term returns from global currency markets

What the P/E Global FX Alpha Fund aims to offer

Global FX exposure

Aims to capitalise on macroeconomic and financial factors through foreign exchange markets

Systematic statistical approach

Flexibility to dynamically adapt to changing return drivers

Potential for long-term absolute returns

Low correlation to equities, bonds, and other alternative strategies

Fund facts
Investment objective The Fund aims to generate long-term total returns by investing in exchange-traded futures providing exposure to developed market and emerging market currencies.
Benchmark RBA Cash Rate
Portfolio managers Warren Naphtal
Inception date 30 April 2017
Fund size $A43.1m (current as at 30 September 2018)
Management fee 1.88% pa of the net asset value of the Fund
Performance fee 20.5% (inclusive of the net impact of GST) of the cumulative outperformance of the Fund (after management fees and expenses but before the deduction of performance fees (paid or accrued)) above the return of the RBA Cash Rate, subject to a high watermark
Minimum investment $A20,000
Distribution frequency Generally semi-annually
APIR code MAQ5143AU
Macquarie Professional Series The P/E Global FX Alpha Fund is proudly brought to you by Macquarie Professional Series. Learn more

Read the Product Disclosure Statement for more details on fees and expenses that may be charged.

Investment strategy

P/E's investment process involves the use of a disciplined and dynamic quantitative model to determine positions held by the Fund. The model relies on statistical analysis to forecast returns and volatilities for currencies based on underlying fundamental factors which P/E believes drive exchange rates.

Performance

Net returns as at 30 September 2018

 
Period 1m (%) 3m (%) 6m (%) 1y (%) 2y (%pa) 3y (%pa) 5y (%pa) Inception* (%pa)
PE Global FX Alpha Fund** -0.87 1.66 15.87 9.82 0.45
Benchmark*** 0.13 0.38 0.77 1.53 1.53

Download full report

Past performance is not a reliable indicator of future performance. Total returns are calculated based on changes in net asset values and assumes the reinvestment of distributions.

* Inception date is 30 April 2017

** Total net returns are quoted after the deduction of all fees and expenses. Due to individual investor circumstances, your net returns may differ from the net returns quoted above.

*** The benchmark is the RBA Cash Rate.

Managers

Warren Naphtal
  • Portfolio Manager
  • Mr. Naphtal has extensive experience in the portfolio management and securities trading fields. From 1993 to 1995, Mr. Naphtal was a Senior Vice President and Head of Derivative Strategies at Putnam Investments, managing $3.5 Billion. He

  • Read full bio

Risks

All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying assets. Generally, the higher the potential return of an investment, the greater the risk. The risks of investing in this Fund include:

Strategy, model and research risk: The Investment Manager’s strategy is implemented  through a proprietary model that has an emphasis on statistical research. However, research is based on what has occurred in the past. To the extent that a market deviates from its accustomed response to an event or the event itself is unusual, extreme or never before  experienced by the market, the value of a research-based methodology will lessen. Mathematical models are representations of reality but they may be incomplete and/or flawed and there is an inherent risk that any forecasts derived from them may be inaccurate, particularly if the research or models are based on, or incorporate, inaccurate assumptions or data. Assumptions or data may be inaccurate from the outset or may become inaccurate as a result of many factors such as, changes in market structure or increased government intervention in markets. As a result, the Investment Manager’s investment approach may not successfully identify statistical advantages leading to profits over time or may result in the Fund investing in positions that lead to losses. This may have an adverse effect on the performance of the Fund.

Investment risk: The risk of an investment in the Fund is significantly higher than an investment in a typical bank account or fixed income investment. While the Fund’s benchmark is the RBA Cash Rate, the Fund is not a cash fund and is not expected to behave like a cash investment. Amounts distributed to unitholders may fluctuate, as may the Fund’s unit price. Changes in the prices of futures positions held by the Fund may result in loss of principal or large movements in the unit price of the Fund within short or long periods of time, including during the period between a redemption request or application for units being made and the time the redemption unit price or application unit price is calculated. Different factors may affect the price of individual futures positions, particular asset classes (such as currencies) or futures positions generally at different times. Due to market risk and the potential short-term volatility of the Fund, investors should have a medium to long-term investment horizon.

Leverage risk: Leverage arises in the Fund through taking both long and short futures positions which are larger in size than the net asset value of the Fund. The Fund will take leveraged positions with the aim of increasing returns which can also lead to increased losses. While this process forms a key part of the investment strategy, it may mean that gains and losses in the Fund may be significantly greater than those in funds that are not leveraged.

More information on the risks of investing in the Fund is contained in the Product Disclosure Statement, which should be considered before deciding to invest in the Fund.

How to invest

Download the Product Disclosure Statement, and check for PDS updates

Send us the Application Form and any required identification documents

Resources

Insights

Why can’t you automate everything? Humans’ vital role in systematic investing

Learn More