Host Capital has unveiled the sterling-based Host Capital Global Currency Fund, which it says is the first UK regulated and domiciled currency fund. The fund is structured as a UK Oeic and is authorised as a Non-Ucits Retail Scheme (NURS).

The Host Capital Global Currency Fund is designed to deliver returns from global currency movements using a systematic modelling approach. It invests in the Citi Carry & Value Index, selected by Host Capital and calculated by Citi. The Index invests in six underlying indices, which provides a diversified exposure to both developed and emerging market currencies. Through this approach, the fund seeks to exploit the differentials between higher and lower yielding currencies (carry) and also exploit the relative value of currencies based on macroeconomic considerations impacting each currency (value).

The fund is designed to give investors access to the currency markets, which enjoy a low correlation to other asset classes, through an index which aims for returns above-cash and correspondingly low volatility targets.

The Host Capital fund will follow the output of the six systematic strategies which comprise the Citi Carry & Value index. According to Host, this approach eliminates subjectivity and manager risk and also lowers management costs. The fund will be overseen by Derek Taylor, who joins Host Capital with over 35 years' experience in currency management.

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The fund will have the following clean fee share classes:
Standard A share class: AMC 0.8%, minimum investment £25,000
Institutional B share class: AMC 0.65%, minimum investment £250,000

Special discounted terms are available for subscriptions received during the offer period which runs from 1 October to 18 October, and are provided through the following share classes:
Standard C class shares: AMC 0.65%, minimum investment £25,000
Institutional D share class: AMC 0.45%, minimum investment £250,000

Derek Taylor, Host's currency specialist, said: "Currency markets are fast moving, and to deliver attractive returns with low volatility requires a well thought through approach and strategy. We have worked closely with Citi to deliver a careful blend of currency investment strategies which we believe deliver predictable returns within a risk constrained environment."

Chris Finch, managing director of Host Capital, said: "For some time discretionary wealth managers and investment IFAs have been asking us to design a currency fund which could be low cost, lowly correlated, easily accessed and compliant with UK regulations.

"Contrary to popular belief, currency markets are not dominated by currency speculators. In fact the majority who play in this space are simply looking to hedge FX liabilities in one form or another. This provides us with a significant opportunity to actively invest in currency with a view to delivering capital returns. The Host Capital Global Currency Fund represents over a year of careful design to achieve a product offering which we believe offers a balance between investment potential, lower risk and value for money."