Why Forex

The Forex market is the world’s largest and most liquid financial market. It is considered a very strong proposition to any portfolio as an alternative investment. The current climate presents a good opportunity to gain exposure to it, as slowing growth and poor economic data combined with the slump in commodities has roiled the global stock markets, and all indications point to this continuing throughout the year. The Fund is an attractive alternative for private investors looking for good growth over the coming years. The tradition of holding only equities, bonds and cash is being replaced due to the advent of new technology, allowing access to investment areas previously the preserve of professionals and institutions. Trading in the world’s largest and most secure currencies is considered a qualified alternative investment that offers suitable diversification.


The Forex market, with a limited number of major currencies and millions of global participants, provides cost effective trading and the ability to trade 24 hours a day. The Forex market has experienced a surge of participants in recent years. This uptake is mainly from private investors wishing to benefit from an asset class that can offer diversification from company specific investing.


Similar to investment funds which hold traditional asset classes, The Strategy seeks to profit by trading global currencies. However, unlike traditional equity and bond markets, there are some characteristics of Forex that create market inefficiencies, which in turn create opportunities.


Contrary to the stock market, where the vast majority of participants are seeking to make a clear profit after costs, there are many entities operating in the currency market where the main motivation is not to seek a profit. For example, multi-national corporations may contract to buy or sell currencies for the primary reason of hedging against currency risk on future earnings or expenses. Governments too, are active in Forex as they manage their currency reserves. These factors lead to market inefficiencies and these create profitable opportunities. The Fund actively seeks out these opportunities, and aims to provide investors with consistently profitable returns over a medium to long term investment horizon.

Algo Performance Fund Overview

The Algo Performance Fund (The Fund) is part of an open ended investment structure established and regulated in Malta, and is classified as a “UCITS” Fund (Undertaking for Collective Investments in Transferable Securities). The Fund is a new entity established to capitalise on opportunities in the foreign exchange market for the private investor. As a regulated UCITS Fund, investors are granted no small amount of assurance regarding liquidity, strict adherence to risk controls and careful observance of volatility. The Fund focuses exclusively on trading global currency markets, otherwise referred to as Foreign Exchange (Forex).

Fund Objective

The Fund seeks to generate absolute returns by investing and trading in Forex. An absolute return means a positive return over time, irrespective of prevailing market conditions. The Forex market is highly liquid, transparent and cyclical in nature; these core features make it a desirable market to operate in when seeking absolute returns. The Fund seeks an absolute return of between 8% and 12% per annum.

The Strategy

The Fund employs the Quantaur Algo FX Managed Program Strategy (The Strategy), which has been structured to utilise several automated algorithms that trade major global currencies in the spot Forex market. The Strategy seeks absolute returns through automated Forex trading. This is done by taking long and short positions utilising derivatives. Leverage is used to increase potential return from positions without the need to tie up large amounts of equivalent cash.

Advantages Of Investing In The Fund

Highly Liquid:

The fund focuses exclusively on trading Forex, which is widely recognised as the largest and most liquid market in the world, with a daily turnover approximately ten times that of global equity markets.

Uncorrelated Returns:

The Fund aims to achieve returns with a low correlation to asset classes such as bonds, equities and hedge funds.

Diversification:

The addition of a Forex component to an investment portfolio can provide valuable diversification. Diversification is an essential element of portfolio management, as has become increasingly evident in light of the market volatility we have seen in recent years.

Leverage:

The Fund utilises leverage. Leverage with careful and efficient management can result in significant returns; the potential gain from a leveraged trade can be far greater than the same trade where no leverage had been applied. The downside of course is that a drawdown can also be multiplied and therefore investors can suffer significant drops very quickly.

Performance:

The Strategy has performed consistently and positively for private investors, outperforming its benchmark (MSCI World Index) since its inception.

Fund Terms

Fund Name Algo Performance Fund
Minimum Investment 5,000 USD/GBP/EUR
Targeted Return 8-12% Per Annum
Management Fee 1.5%
Monthly Performance Fee 20% (high-water mark basis)
Redemption Period Daily, on request
Please refer to Key Investor Information Documents (KIID) in the Document Centre for further details on your required currency and share class

How To Invest

Investors can invest directly, through a portfolio bond or via a recognised fund platform. The Fund can fit into a SIPP, SSAS or QROPS pension structure. Advisers should determine suitability and guide their clients through the investment process. This document should be read along with the Offering Memorandum and the Key Investor Information Document (KIID).

Investedge UCITS SICAV Plc (Investedge), an open ended investment company established in Malta and registered at The Cornerstone Complex, Level 3, Suite 3, 16th September Square, Mosta, Malta, MST 1180 (registration number: SV394). The Algo Performance Fund is a sub-fund of Investedge and is available for sale in certain jurisdictions only. Investedge is not available for sale in the US and marketing information for Investedge or its sub-funds should not be published or distributed in the US.
Investments in The Fund can go down as well as up in value and involve the risk of loss. Please be aware that trading Forex, especially where leverage is utilised, carries a high degree of risk. It is the responsibility of Financial Advisers and Wealth Managers to determine if an investment in The Fund is suitable for their clients. All prospective investors should read the Offering Memorandum and the Key Investor Information Document (KIID).