Launch first of range of Curr

RNS Number : 3374Z

Record PLC

21 September 2009

 



FTSE Group and Record plc launch first in the range of Currency FRB Indices

21 September 2009:  Record plc announces that FTSE Group ('FTSE'), the award winning global index provider, and Record Currency Management ('Record'), the specialist currency investment manager, have today launched the first set of indices within the new and innovative FTSE Currency Forward Rate Bias (FRB) Index Series, allowing investors to access this alternative beta within FTSE's range of alternative indices.

The new FRB5 indices utilise the five most widely-traded currencies (US Dollar, Euro, Japanese Yen, Pound Sterling and Swiss Franc) in a forward rate bias (also referred to as 'carry') strategy. Forward rate bias is the observed tendency of higher interest rate currencies to outperform lower interest rate currencies. This outperformance is captured through a series of rolling one-month forward contracts, equally-weighted across all ten currency pairs. 

The indices come at a time when investors are increasingly looking at opportunities for diversification. Research from Record shows that FRB provides a fundamental and sustainable return stream that rewards the risks associated with holding higher interest rate currencies. With a low long-term correlation to other asset classes such as equities and bonds, the indices uniquely allow investors access to a pure source of alternative beta in currency markets. Based on market spot and forward prices going back to 1978, the index series is one of very few to demonstrate a long-term return over 30 years that is comparable to that of global equities and superior to that of global bonds, with volatility comparable to bonds and lower than equities.  The annualised return of the FTSE Currency FRB5 total return index in USD is 9.7% p.a. since 1978.

Neil Record, Chairman and CEO of Record, said: 'The FTSE Currency FRB Index Series will enable investors to develop new diversification strategies as the series returns show low correlations with established asset classes such as equities and bonds. Taken together with the scalability inherent in the currency markets and the universe of investable managers, this should help the investment community recognise the currency forward rate bias as an alternative beta.'

Imogen Dillon Hatcher, Executive Director of Global Sales at FTSE said: 'The Foreign Exchange market is the largest market in the investment world, with USD 3 trillion traded daily, allowing for both retail and wholesale investment. FTSE is committed to offering investors a complete suite of index products to measure and analyse all facets of the investment landscape. The FTSE Currency FRB Index Series will allow clients to access the currency market and has been created in response to market demand.'

The new indices will be calculated on a fully-investable basis and published daily by FTSE (both excess return and total return) and are the first in a range of currency indices that FTSE and Record will work together on.  These indices can be used for portfolio construction, index-tracking management, including within financial products such as ETFs, and benchmarking active currency strategies. 

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For more information or data regarding the index series contact: 

FTSE Group

New York

Jill Mathers, Tel: + 1 212-314-1141 or email [e-mail] 

London 

Sabrina Bhangoo / Mittal Dave Tel: [phone] or email [e-mail]  

Hong Kong

Meredith Blakemore / Emily Mok, Tel: + 85 222 305 801 or email [e-mail] 

Tokyo

Stewart Ueno, Tel: [phone] or email [e-mail] 

Australia

Natalie Brooke, Tel:  [phone] or email [e-mail] 

Record plc     

Neil Record / Carl Beckley / James Wood-Collins: Tel [phone]

Hogarth Partnership: Nick Denton / Julian Walker Tel [phone]

Notes to Editors

The FTSE Currency Forward Rate Bias Index Series - FRB5 Indices factsheet can be found at www.ftse.com/forex.

More information about FTSE and its global offering can be found at www.ftse.com and about Record at www.recordcm.com.

About FTSE Group

FTSE Group ('FTSE') is a world-leader in the creation and management of indexes. With offices in Boston, Beijing, London, Frankfurt, Hong Kong, Madrid, New York, Paris, San Francisco, Sydney, Shanghai and Tokyo, FTSE works with investors in 77 countries globally. It calculates and manages a comprehensive range of equity, fixed income, real estate and investment strategy indices, on both a standard and custom basis. The company has collaborative arrangements with a number of stock exchanges, trade bodies and asset class specialists around the world. 

FTSE indexes are used extensively by investors world-wide for investment analysis, performance measurement, asset allocation, portfolio hedging and for creating a wide range of index tracking funds.

About Record plc

Record plc (including its subsidiaries, 'Record') is a specialist currency investment manager and provider of currency hedging services for institutional clients. Founded in 1983, Record has established a market leading position as a currency asset manager. Specifically, Record has a leading position in managing currency for absolute return for institutional clients.

Record has three principal product lines:

- currency for absolute return, in which Record enters into currency contracts for clients with the objective of generating positive returns;

- active hedging, where Record seeks to eliminate the impact of currency movements on elements of clients' investment portfolios that are denominated in foreign currencies when these movements are expected to result in an economic loss to the client, but not to do so when they are expected to result in an economic gain; and

- passive hedging, where Record seeks to eliminate fully the economic impact of currency movements on elements of clients' investment portfolios that are denominated in foreign currencies.

Record (LSE: REC) was admitted to trading on the London Stock Exchange on 3rd December 2007.

This announcement includes information with respect to Record's financial condition, its results of operations and business, strategy, plans and objectives. All statements in this document, other than statements of historical fact, including words such as 'anticipates', 'expects', 'intends', 'plans', 'believes', 'seeks', 'estimates', 'may', 'will', 'continue', 'project' and similar expressions, are forward-looking statements.

These forward-looking statements are not guarantees of Record's future performance and are subject to risks, uncertainties and assumptions that could cause the actual future results, performance or achievements of Record to differ materially from those expressed in or implied by such forward-looking statements.

The forward-looking statements contained in this document are based on numerous assumptions regarding Record's present and future business and strategy and speak only as at the date of this announcement.

Record expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement whether as a result of new information, future events or otherwise.

 

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