Currency Trends Plus Fund
Why Invest in Currencies?
The Currency Trends Plus Fund offers a unique investment opportunity for today's investors to gain access to a diversified basket of currencies not previously available to retail investors.
Currencies typically offer:
- low correlation to stocks and bonds
- access to a highly liquid asset class*
- volatility levels which historically tend to be more akin to Fixed Income**
- the potential to offset foreign investments priced in foreign currencies if the US Dollar appreciates
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* Daily Market Turnover ($US Billions)
** Currency Volatility Relative to Equities and Fixed Income
Source: Bloomberg, Deutsche Bank
The following indices are used as proxies for the respective asset classes;
Equities - VIX Index: Chicago Board of Options Exchange Volatility Index.
Fixed Income USSV055 Index: USD Swap on 5 year Fixed/Floating Volatility Index.
Currencies - CVIX Index: Deutsche Bank FX Volatility Index.
All calculations based on daily data (12/31/1990 - 12/31/2010). The y-axis represents annualized standard deviation of daily returns
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