After almost two years since the launch of FX BIAS and a good evolution since then, we would like to provide you with a short review and an update about the latest developments of the FX BIAS Strategy.
FX BIAS offers alternative investment investors a systematic methodology to gain exposure in liquid currencies. The rule based strategy uses business sentiment surveys for 10 major countries/currencies to build a diversified currency portfolio.
→ Unique FX strategy approach
→ Great diversification
→ Attractive risk/return profile
→ Daily liquidity
→ Excellent cash substitute
Review of 2022 YTD
After a good first year, FX BIAS ran into headwinds in 2022. The Russian attack on the Ukraine was not anticipated by business surveys and the interchange of dovish and hawkish central bank decisions created additional volatility. The good news, a large part of the drawdown earlier in the year has already been recovered.
Initially, FX BIAS was based on 8 currencies with one business survey for each currency. Last year, we already added 6 more surveys. Now we have expanded FX BIAS by two more currencies (NZD and NOK) and 8 more surveys. We also flattened the currency weighting to increase the diversification and stability of FX BIAS.
→ Please read more about the developments on FX BIAS in our QCAM Special: Expanding FX BIAS
→ Factsheet: please write to email@example.com.