Real estate fund manager Quay Global Investors has launched a currency hedge fund, the Quay Global Real Estate (Hedged) fund, in response to investor demand.

Quay’s existing unhedged Quay Global Real Estate fund has been renamed the Quay Global Real Estate (Unhedged) fund, but its investment team, objectives and processes have remained unchanged.

Chris Bedingfield and Justin Blaess, co-directors and portfolio managers at Quay, said growing customer demand had led to the introduction of a hedged product.

Bedingfield said: “We know that a number of our clients want a mix of hedged and unhedged products in their portfolio, and some like to manage currency positioning themselves.

“While we continue to believe that an unhedged strategy will result in lower volatility and is less risky in times of market disruption, we are committed to making our strategy available to anyone wishing to access the themes of attractive and growing investment in global real estate. ”

Blaess explained that the hedged fund would be managed using the same investment strategy as the unhedged fund, which returned 13.92% annually at the end of last year, after fees and expenses.

“We will continue to manage both funds in accordance with our proven strategy of delivering attractive total returns over the long term,” he said.

“The hedge fund, however, aims to mitigate the currency impact by hedging foreign currency exposure.”