Parker Global Strategies, a provider of alternative investment solutions, in conjunction with BlackTree Investment Partners, a London-based investment management firm, have announced th
Parker Global Strategies, a provider of alternative investment solutions, in conjunction with BlackTree Investment Partners, a London-based investment management firm, have announced the launch of a suite of currency indices.
The Parker BlackTree Currency Indices are said to be the first of their kind to combine the alpha available from both active currency managers and a diversified portfolio of currency market drivers. They are designed to highlight the complete spectrum of investment opportunities available to investors seeking absolute returns and portfolio diversification from the currency markets.
The index is comprised of a portfolio of sub-indices: the Currency Managers Index, which tracks the returns of active currency managers; and the Investment Strategies Index, which represents alpha derived by thematic rules-based investment strategies.
‘The PBCI is innovative in its robust capture of both the alpha and beta available in the global currency markets and we are delighted to have teamed up with BlackTree to develop the most comprehensive measure of currency market performance to date,’ says Virginia R. Parker, managing member and chief investment officer of Parker Global Strategies.
Parker Global has developed the Currency Managers Index through application of its proprietary FX Style Trax mapping system.
‘We have identified ten distinct investment styles representing three major drivers: macro/discretionary, model-driven, and diversified,’ says Parker.
‘The PBCI exhibits a low correlation to other asset classes and consequently offers outstanding diversification characteristics to investors,’ says Thomas Soede, managing partner at BlackTree. ‘The Investment Strategies Index is an intuitive, transparent and comprehensive portfolio of alpha strategies grouped into three distinct themes: macro pressures, risk perception and market dynamics.’
Parker Global and BlackTree are also launching the PBCI+ Index which will be reported along with the PBCI. The PBCI+ targets a higher return and volatility of six per cent by adjusting exposure to the underlying sub-indices. A risk control is incorporated to add greater stability and limit overall risk.
Parker Global and BlackTree are finalising a suite of investable products based on the PBCI which will offer features including low to no correlation to traditional asset classes, managed volatility, controlled risk, daily liquidity and a high level of transparency. The first to be launched will be based on the PBCI+. Additionally, the drivers for each of the Currency Managers Index and Investment Strategies Index will be available to develop customized solutions for investors with specific diversification needs.
