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Quantica Capital launches Gold denominated CTA share class

Thursday, October 01, 2020
Opalesque Industry Update - Swiss-based systematic investment manager Quantica Capital will launch a Gold (XAU) denominated share class in its offshore Quantica Managed Futures Fund. The share class will offer access to Quantica's systematic trend-following QMF Program and will use futures and forwards to hedge the Program's returns into Gold (XAU). The new XAU share class will report its NAV in XAU and will be settled in USD.

"With this new innovative product we aim to combine the return and diversification potential of the proven systematic investment process of the QMF program with the attractiveness of an investment in Gold. Gold has been an accepted store of value for centuries and its role as an alternative to the major currencies could become increasingly important in the medium- to long-term future. In a world where paper money issued by central banks is suffering from ever-increasing debt, muted economic outlook and ultra-low interest rates paired with inflation fears, a strategic investment in Gold might be more attractive than ever", says Bruno Gmür, founder and CIO of Quantica.

The Gold (XAU) share class is expected to deliver the same net returns as the USD share class, adjusted for the relevant hedging costs, which are a direct function of USD interest rates. As long as interest rates remain at current ultra-low levels, hedging costs are expected to remain moderate.

"Our Gold denominated CTA product is a highly capital effective way of investing in Gold and a trend-following CTA program at the same time. It will be attractive to any investor who looks for the diversification benefits of a CTA, and who aims to build a strategic position in Gold that is 'productive', overcoming the often quoted disadvantage of Gold not delivering any dividend or interest income", says Nicolas Mirjolet, CEO of Quantica.

The new share class will be launched on 1 October 2020 and offers weekly and month-end liquidity.

Swiss-based Quantica Capital AG, founded in 2003 by Dr Bruno Gmür, is a leading, independent Swiss alternative investment manager specialised in systematic investment management. The flagship Quantica Managed Futures (QMF) Program, with its successful 15+ years track record, is a systematic medium-term trend-following program investing in more than 60 liquid exchange-traded futures markets covering equity indices, fixed income, interest rates, commodities and currencies. Quantica manages assets in excess of USD 700 million and offers its programs in commingled products, UCITS funds, institutional platforms and separately managed accounts. The QMF program has delivered a +24.7% net return in 2019 and -0.3% YTD in 2020 as of end of August, and has outperformed the CTA industry significantly.

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