Bringing you live news and features since 2006 

Currency Cogs

Eaton Vance launches Currency Income Advantage Fund

RELATED TOPICS​

Eaton Vance Management has launched the Eaton Vance Currency Income Advantage Fund.

 
The new mutual fund seeks total return by investing at least 80 per cent of net assets in (i) income instruments denominated in foreign currencies and/or issued by foreign entities or sovereign nations, (ii) derivative instruments relating to foreign entities or sovereign nations and (iii) precious metals and commodities-related instruments. 
 
The fund expects to normally maintain foreign currency exposures across developed, emerging and frontier markets.   
 
The fund is the second Eaton Vance-sponsored currency income fund, joining Eaton Vance Diversified Currency Income Fund which was launched in 2007 and had net assets of approximately USD800m as of 31 July 2013.  Compared to Diversified Currency Fund, the fund seeks to earn higher income and total returns, with commensurately higher risk. 
 
"We believe investments in foreign currencies can provide investors with an attractive income stream and potentially reduce portfolio volatility and hedge against potential US price inflation," says Payson F Swaffield, chief income investment officer for Eaton Vance.
 
The fund is managed by a team led by Eric Stein, vice president and co-director of Eaton Vance’s global income group, Michael Cirami, vice president and co-director of Eaton Vance’s global income group, and John Baur, vice president of Eaton Vance and director of global portfolio analysis.
 
"We employ a macroeconomic and political research process to evaluate the relative attractiveness of countries and currencies," says Cirami. "We typically invest in countries where we deem the policy mix and economic environment as being supportive of long-term growth – these are the places we believe will attract capital investment and, thus, experience currency strength."
 
"We believe many investors in the US have little to no active foreign currency exposure within their portfolios, resulting in a nearly 100 per cent allocation to US dollar-denominated assets," says Stein. "Based on their historically low correlation to traditional stock and bond investments, allocating assets to foreign currency instruments can provide meaningful portfolio diversification and potentially lower overall portfolio volatility."

Latest News

BlackRock’s global ETP flows report for June finds a steady rise with USD128.1 billion added to global ETPs in June,..
Morningstar’s global ETF flows report for the first half of 2024 shows that actively managed ETFs have captured 25 per..
The surge in bitcoin ETF launches and funds flowing into the sector is transforming institutional investment in digital assets but..
LSEG Lipper’s latest research finds that the majority of actively managed funds and ETFs globally were not able to beat..

Related Articles

Chris Lo, Columbia Threadneedle
In a recent insight on India by Columbia Threadneedle Investments, the firm reports that the country’s economic reforms, which aim...
With an election on the horizon in the United States a group of ETFs is poised to capture investments on...
Robot worker
Qraft Technologies, based in South Korea, specialises in the use of AI in security selection and portfolio construction....
Andrea Busi, Directa SIM
Romain Thomas talks to Andrea Busi (pictured), CEO of Directa SIM, who explains why the online trading platform has just...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by