UK - Pension funds may finally be reaping the benefits of currency alpha products, according to BNY Mellon Asset Servicing.
Alan Wilcock, performance and risk analytics manager, BNY Mellon Asset Servicing, told Global Pensions: "Changing strategies always takes time in the pension fund industry, but investors are beginning to realise currency alpha products can produce absolute, uncorrelated returns."
Wilcock added the take up was still relatively low compared to that of currency hedging products, but pension funds were gradually opening up to the alternative asset class space.
Data produced by Mellon's index detailed returns of 76 separate currency managers, not trading overlay products.
Some 39 of these managers produced positive returns with a median level of 0.39% in 2007.
It showed an annualised information ratio of 0.5 since the index's inception in 2004.
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