Institutional currency investment manager Millennium Global Investments (Millennium Global) has announced the launch of a Luxembourg-domiciled UCITS fund.
The firm has already raised over USD 100 million in pre-launch funding, with the product going live on September 15.
The new fund is intended to provide a wider universe of investors with access to Millennium Global’s systematic currency alpha strategy, which offers daily liquidity.
The fund takes long and short positions in nine developed market currencies vs. the US dollar. Positioning is driven by a proprietary systematic investment model that uses forward-looking momentum signals to determine the probability of range expansion, trend reversals and gap risk alongside currency risk premia analysed using sparse-learning techniques.
Mark Astley, co-CEO of Millennium Global, said: “Currency markets are at the focal point of economic, financial and geo-political differentiation. Returns generated from currency markets are typically uncorrelated with other asset classes and therefore provide attractive diversification benefits within most investors’ asset allocation frameworks. Many traditional asset classes are currently highly valued, especially US equity and fixed income markets. Investors are looking elsewhere for attractive returns and this makes it an ideal time to launch the UCITS Fund”.
Umberto Alvisi, co-CIO and head of Systematic Investments at Millennium Global, added: “We are seeing growing demand for our return-seeking and hedging programs from large institutions. We think that the current environment is favourable for our strategy and are pleased to be able to make it available to a wider audience.”