The Parker FX Index, a global benchmark that tracks the performance of leading currency funds, has reported a jump of 2.71% MoM in the month of January, with approximately 63% of programs in the index showing positive results.
Parker Global Strategies LLC (PGS) is an alternative investment management group that is proficient in the direct investments via Master Limited Partnerships (MLPs). More specifically, PGS also acts as an agent of managers for a variety of initiatives involving FX, having erected a suite of investable manager indices for FX.
Back in January, the Parker FX Index yielded returns during the latter months of Q4. The index reported a positive performance of 0.68% return for November. Of the 36 funds in the index, 31 reported their findings. The figures highlight the correlation between trading performance and market volatility.
As per the recent announcement, 31 of the 35 programs in the Index reported January results, of which twenty-two showed positive results, while only nine incurred losses. Furthermore, on a risk-adjusted basis, the Index was up 1.21% in January, leaving a median return for January at 2.06%.
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FX Index Composition
The Parker FX Index tracks the performance of managers that are derived from positioning both long or shorts of foreign currencies. The Index is equally weighted, as opposed to capitalization weighted, controlling for outliers or swaying in the performance that may not be representative of the currency manager universe.
More specifically, the Parker FX Index currently includes 35 programs managed by 32 firms located across such countries as the United States, Canada, UK, Germany, Switzerland, Sweden, France, Ireland, Singapore and Australia, whose programs manage nearly $40 billion in currency strategy assets.