Argonaut launches sterling-hedged share class ahead of Brexit


Currency volatility in the lead up to Brexit has prompted Argonaut to launch a sterling-hedged share class for its FP Argonaut European Alpha fund.

“UK investors often have strong views on the euro. Fears of a Brexit have recently triggered significant weakness in sterling, which may reverse post-referendum in the event of a pro-EU result,” says Barry Norris, Argonaut founder and manager of the £395m fund.

“Therefore the time is right to offer a hedged share class option for Alpha unitholders wishing to protect themselves against future euro weakness.”

The fund has returned 34.24 per cent over a three-year period, with income reinvested.

Last week it was announced that Norris would take full control of Argonaut, ending his joint venture with Standard Life Investments. The move saw him retain the European Alpha, pan-European Alpha and Absolute Return businesses, which have around £1.1bn in assets.

Oliver Russ, who is lead manager of the £169m Argonaut European Income fund and the £131m European Enhanced Income fund, will move to Liontrust, taking the two funds with him as part of the move.