Currency Manager Kicks Off FX Fund

February 11, 2005 ( - New York-based currency manager FX Concepts is launching a new fund based on its FX Volatility Program.

A news release from the company said the Volatility Fund, available in both offshore and onshore versions, offers monthly liquidity and a minimum investment of $250,000.  Fees are 1.5% and 20%.  FX Concepts said that in addition to the funds, the Volatility Program will also be offered through a total return swap where clients receive/pay the returns of the program on a monthly basis based on their share of the swap.

According to the announcement, the Volatility Program is an outgrowth of two non-directional strategies that FX Concepts has been operating since March 2002. The first is the options component of the Developed Market Currency (DMC) program which has $900 million AUM. The second is a stand-alone options program ($250 million AUM) that was developed for an institutional client a year later, based on the experience of the DMC options program.

The Volatility Program will be composed of sub-modules and is made up of three non-directional strategies.  FX Concepts will retain the right to add new sub-modules and also to dynamically weight these modules based on the goal of maximizing return per unit of risk. The Volatility Program will target an annualized return of around 15%, the company said.
FX Concepts is a currency manager with over $12 billion in AUM in multiple absolute return and currency overlay strategies, according to the company.

More information is at .