September saw the Newedge managed futures indices continue their positive momentum seen in August, with positive returns posted across the board for the second month in a row.
The strong post-summer period for CTAs means that the Newedge indices remain firmly in the black for 2014 YTD.
Trend-following strategies continue to drive this positive performance, with strong gains yet again in September. The Newedge Trend Index returned +3.33 per cent for the month, building on a +5.40 per cent return in August, while the Newedge Trend Indicator posted its highest monthly gain since the index began in January 2000. It showed +16.66 per cent for September, with 2014 YTD performance now standing at +18.13 per cent.
Newedge’s data shows that the currency sector was a significant contributor of positive performance in September, contributing +15.38 per cent. The commodity sector also showed positive performance, building on the gains made in August to contribute +4.29 per cent for the month, but remains in negative territory for 2014 YTD.
James Skeggs, global head of advisory group at Newedge, says: “Contrary to the popular misconception, trend-following strategies are very much alive and are a significant reason for the positive CTA performance we have seen in 2014. Momentum is positive at present, and the volatility we’ve seen in markets – particularly in currencies – is providing more opportunities on which such strategies can capitalise.”
