Saturday, 30 July 2016
Last updated 11 hours ago
Dec 14 2009 | 10:16am ET
While hedge fund managers have had trouble attracting new investment over the past 12 months, one exchange traded fund that tracks the asset class via an index has bucked that trend.
The db x-trackers db Hedge Fund Index ETF has reached more than US$1 billion in assets under management since its launch in January of this year.
"The db x-trackers Hedge Fund Index ETF is the first of its kind to provide exposure to the performance of actual hedge funds. It is not a hedge fund replicator,” explains Stephane Farouze, global head of hedge fund derivatives at Deutsche Bank. “With the introduction of the ETF we have enabled investors to access an important portfolio component in a new way. Underlying the index is a diversified pool of hedge funds from the, transparent, risk-monitored and liquid Deutsche Bank X-markets Hedge Fund platform.”
Thorsten Michalik, head of db x-trackers at Deutsche Bank adds, "Besides investing into actual hedge funds, the intra-day liquidity is clearly a unique advantage of our Hedge Fund ETF - daily volumes of over 50 million Euros are not unusual. We’re aiming for the db x-trackers db Hedge Fund Index ETF to become the world’s most recognized product for transparent and liquid investments into Hedge Funds."
The db Hedge Fund Index is asset weighted to the hedge fund industry and linked to the range of hedge funds available on Deutsche Bank’s X-markets Hedge Fund Platform.
The db x-trackers db Hedge Fund Index ETF is available in US Dollars, British Pounds, Euro and Swiss Franc share classes and is now listed in the UK, Germany and Switzerland.