Barclays Capital has launched its Adaptive FX Trend Index. The bank says that trend strategies are one of the central sources of return in FX markets, but that there are very few liquid, transparent and easily investible indices available to invest in. The portfolio invests in G10 currencies and rebalances daily.
“The Barclays Adaptive FX Trend Index has low-to-negative correlation with fixed income, equities, commodities and other FX indices, clearly demonstrating the diversification benefits that it could bring to a traditional portfolio,” says Andrew Kaufmann, head of FX structuring at Barclays Capital.