The Royal Bank of Scotland has partnered with Victor Sperandeo, known as Trader Vic and chief executive of Enhanced Alpha Management, to develop a managed futures index designed to enab
The Royal Bank of Scotland has partnered with Victor Sperandeo, known as Trader Vic and chief executive of Enhanced Alpha Management, to develop a managed futures index designed to enable institutional and retail investors to benefit from volatile market conditions.
The Trader Vic Index was developed by Enhanced Alpha Management and designed and calculated by RBS through an exclusive partnership.
It is a rules-based, long/short index comprised of a diversified basket of 24 futures contracts spread across three asset classes: physical commodities, global currencies and US interest rates.
Zafar Alam, global head of equities sales at RBS, says: ‘RBS is delighted to have this opportunity to work with Victor Sperandeo on the Trader Vic index. The index aims to deliver consistent, robust returns. The track record of the index is good and was up 23 per cent in 2008, which indicates that even in a bear market a diversified asset allocation approach could result positive returns. The experience of Vic Sperandeo speaks for itself.’
The index has the ability to go long and short which means investors can take advantage of both rising and falling market trends.
The product is similar to managed futures products run by commodity trading advisers, but the TVI offers daily liquidity, transparency and vastly reduced fees.
Sperandeo (pictured) says: ‘For decades, professional investors have recognized the value of managed futures as a portfolio diversification tool, especially during periods of high market volatility. The Trader Vic Index provides both retail and institutional investor’s access to a liquid, transparent managed futures strategy that incorporates my views on portfolio management. In RBS, we’ve found a strategic partner to deliver our latest investment strategy to clients across the globe and I couldn’t be more pleased with the support their product teams have given to our partnership.’
