Investment Management in FX

The Fundamental Discretionary Foreign Exchange (FDFX) strategy was developed in 2009 by the senior members of our investment team led by Jonathan Ratcliffe.

Salix Capital is a Global Macro manager, providing investment management services through a suite of products based on the Fundamental Discretionary Foreign Exchange investment process (“FDFX”). FDFX invests purely in the foreign exchange markets, given the underlying liquidity and efficiency of currencies in expressing macro themes. The process is designed to balance the value of discretionary judgement of the investment team with the thoroughness and objectivity of a systematic process.

Fundamental in nature, FDFX pursues a systematic approach towards analysing macroeconomic data in order to rank currencies, thereby identifying assets and liabilities within the asset class. The core principle guiding the investment strategy is that by ensuring a disciplined approach to analyzing fundamental data, individual currencies can be evaluated over the medium term. To do this, a robust systematic process has been developed to analyse a wealth of macroeconomic and market data, in order to rank each currency on a monthly basis relative to 10 defined drivers. The resulting evaluation is presented in the FDFX Scorecard which identifies a portfolio of asset and liability investments for expression through FX forwards and Non-Deliverable Forwards. Each product that results from the FDFX process operates within strict risk management guidelines to ensure that the core investment themes identified by the process are protected and investor capital preserved.

Executive Summary

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Salix Capital (UK) Limited (“Salix UK”) is authorised and regulated by the Financial Conduct Authority under firm reference number 583141 and registered in England and Wales under company number 7945442. Salix Capital FDFX Limited (“Salix FDFX”) is an appointed representative of Salix UK and is registered in England and Wales under company number 8512849 (FCA reference number: 600890). The registered offices of Salix UK and Salix FDFX are at 105 Piccadilly, London W1J 7NJ, United Kingdom.