Friday, 19 December 2014
Last updated 9 hours ago
Mar 6 2007 | 2:42pm ET
Rydex Investments is taking retail investors a step further into the alternatives investment space with a mutual fund featuring exposure to managed futures.
The Rydex Managed Futures Fund, which was launched this week, will provide its investors access to the U.S. commodity and global financial futures markets through the use of structured notes by tracking the performance of the Standard & Poor’s Diversified Trends Indicator.
The S&P DTI is comprised of 14 sectors with 50% allocated to financial futures and 50% to commodity futures. It has the ability to go long or short based on price momentum with the exception of the energy sector, which can only go long or neutral. The model rebalances on a monthly basis.
“The S&P DTI methodology is rules-based and relies on trends to capture profits,” said Edward Egilinsky, managing director of alternative investments at Rydex. “The S&P DTI also offers benefits from a diversification standpoint. It has historically shown a very low or slightly negative correlation to traditional investments such as fixed-income and equities and at the same time exhibits an attractive risk/return ratio.”
Rydex currently manages some $14 billion in mutual funds and exchange-traded funds.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.