Citi indexes offer low-cost forex exposure

Citi indexes offers low-cost forex exposure

Inexpensive and flexible access to FX

The indexes use a monthly ranking system to determine which currency pairs are traded for each investment style, and capture the returns available from common currency trading styles in prevailing market conditions.

The indexes include more currency pairs than previous versions and feature five core investment styles: G10 Trend, G10 Carry, Emerging Market Trend, EM Carry, and G10 Purchasing Power Parity (PPP).

Investors can use the indexes to gain instant exposure to a diversified currency portfolio that is automatically rebalanced each month to ensure that it regularly recalculates the highest yielding opportunities.

"Investors can go long and short [through the indexes], and they are useful in reflecting what is happening in the markets. They are easily tradable, providing instant access to a portfolio rather than an individual currency. They work very nicely for a hedge fund considering a total return strategy or a portfolio investor thinking of an overlay," said Philip Brass, director of CitiFX in London.

The indexes incur no management fees, and, in addition to the five core investment styles, provide investors with an additional five combinations: Global Carry (EM and G10 carry), Global Trend (EM and G10 trend, G10 (G10 carry, trend and PPP), EM (EM carry and trend) and BetaMax.

The combined strategy portfolios provide broad exposure to a theme while the CitiFX BetaMax is a diversified index that offers the opportunity to invest in forex beta as an asset class.

Brass said the indexes can be accessed in a variety of ways, such as total return swaps and structured notes. Several structured products based on the indexes have already been issued, he added.

  • LinkedIn  
  • Save this article
  • Print this page  

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services -, or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: