FX: FTSE Group launches its currency indices

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FX: FTSE Group launches its currency indices

An aim of tapping into the potential of robust, transparent and ultimately investable FX indices has resulted in FTSE Group launching its FTSE Currency Forward Rate Bias (FRB) Index Series in conjunction with Record Currency Management. The FRB series effectively provides a carry strategy on the dollar, euro, yen, sterling and Swiss franc. Record’s research suggests that FRB provides a fundamental and sustainable return stream that rewards the risks associated with holding higher-interest-rate currencies. The index series is based on data going back to 1978 and shows a long-term return comparable to global equities and superior to global bonds, but with lower volatility. Ultimately, the hope is that products, such as ETFs and futures, will be based on the indices.

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