New Directional Funds Launched

Stephen Harris

30 March 2005

Baring Asset Management (BAM) has launched two funds in Austria, Denmark and Switzerland. The Baring Directional Euro and US Dollar funds both lie within the Baring Global Investment Umbrella Fund. They were registered in Germany, Luxembourg and in the UK earlier this year and are expected to be registered in France and Belgium by the end of the month. The minimum investment is €3,500 or $5,000. By investing in bonds and currencies the funds aim to deliver returns of 4 per cent above three-month LIBOR after fees by using directional strategies. They follow on from the success of the Sterling denominated Baring Directional Global Bond Trust a year ago and The Dollar and Euro denominated funds in November 2004. The Sterling fund has delivered an absolute return of 6.2 per cent since launch in March 2004. Baring say that low yields on long-term bonds, momentum-trading in the bond market and price-insensitive buying is making many bond investors nervous. However, investors can make money in bonds, but not in the way they used to according to the company which is keen to generate positive absolute returns whichever way the bond and currency markets move.