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Andrew Dales, Axa: delivering portable alpha |
Although aimed at slightly different segments of the investment community, new index products from Citi and Axa are both intended to allow investors to access alpha from foreign exchange speculation. Citi’s product, which it calls its Advanced Alpha FX Indices, has been developed in conjunction with Deutsche Börse. The bank says that the product follows the successful acceptance of its Beta1 range of indices, which it launched in early May. A Citi spokesman says demand is now sufficient for these to see the launch of a listed product, which it believes will cater for the retail market because of ease of accessibility.
Sophisticated
The new alpha indices are aimed at a more sophisticated audience. Citi will offer six different funds based on trend, G10 carry, emerging market carry, an economic factor model, long volatility and short volatility models. Investors will be able to both buy and sell the indices.
Meanwhile, Axa Investment Managers says its first active currency fund, which is a Luxembourg-based Ucits III product, is aimed at institutional investors. Axa says its Currency Ultimate fund has a targeted net return of cash plus 22.5%.