Investing in foreign currency

Is it possible to invest in TAM mutual funds in a currency other than EUR?

The investor should invest in the mutual fund in the currency in which the fund aims to enhance the assets under management, the so-called reference currency. The only funds managed by TAM whose reference currency is a currency other than EUR are the US Equity Fund and NewMarkets. The reference currency of these funds is USD. These funds have a dollar account as well as a euro account. All other TAM funds maintain only euro accounts.

Is it possible to invest directly in a foreign currency without prior exchange for EUR?

You can also invest a currency other than EUR, but this currency will be changed to EUR and credited to the fund's euro account. The performance of your investment is published in EUR. When redeeming the investment, you will be paid EUR. Only with the US Equity Fund can you invest in USD, track performance in USD, and even redeem your investment and receive a USD in your dollar account.

Am I taking on currency risk when investing?

When investing in our funds with the reference currency EUR, you do not take currency risk. In the event that the movement of the EUR exchange rate against another currency could have a negative impact on the performance in EUR, the currency risk is hedged. On the other hand, if the movement of the EUR exchange rate against another currency may have a positive impact on performance in the EUR, the Fund aims to make the most of such a movement.

Only investors in the US equity fund investing in EUR are exposed to currency risk.

Why does the US Equity Fund also perform in EUR?

Mutual fund accounting, according to our laws, must be made in EUR. In this case, however, there is no real conversion of the mutual fund's assets into EUR, but only its accounting conversion into EUR using the ECB exchange rate. For this reason, the fund's shares are also issued in EUR, although the fund's assets are denominated in USD.

How are fund investments protected in the event of a euro devaluation?

Investments in those mutual funds whose assets are denominated in USD are protected against the devaluation of the EUR against the USD (i.e. the price of such a fund rises under the influence of devaluation). Of the current offering, only the US Equity Fund have assets denominated in USD.