News Column

Newedge-Managed Futures Endure a Tough July

August 13, 2014



ENP Newswire - 13 August 2014

Release date- 12082014 - Newedge, a global leader in multi-asset brokerage and clearing, today announces the July performance data for its CTA performance indices.

All managed futures indices calculated by Newedge reported negative performance in July. Despite this the Newedge CTA Index still remains in positive territory for the year to date with a performance of +0.14% YTD, declining -0.91% during the month of July.

Trend followers had a difficult July, bringing the Newedge Trend Index down to -1.06%, increasing the negative performance of the year to -1.76%.

Performance attribution data from the market-based Newedge Trend Indicator shows that the positive performance achieved during the first part of July was offset by losses at the end of the month.

Bonds continued to provide positive returns, gaining +0.13% and bringing the year-to-date performance to +1.79%. In contrast, the positive trend seen in currencies during the month of June reversed in July with a decline of -2.37%, bringing the sector contribution down to -0.39% YTD.

Index

July Return

YTD Return

Newedge CTA Index

0.91%

+0.14%

Newedge Trend Index

1.06%

1.76%

Newedge Trend Indicator

4.36%

8.69%

Newedge Short-Term Traders Index

0.46%

+1.53%

The Newedge CTA Index, which is equally weighted, calculates the daily rate of return for a pool of the largest 20 CTAs that are willing to provide daily returns and are open to new investment. Both indices are rebalanced and reconstituted annually.

The Newedge Trend Index, which is equally weighted, calculates the daily rate of return for a pool of the largest 10 trend following-based CTAs that are willing to provide daily returns and are open to new investment.

The Newedge Trend Indicator is a market based performance indicator designed to have a high correlation to the returns of trend following strategies.

The Newedge Short-Term Traders Index is designed to track the daily performance of a portfolio of the largest 10 short-term, diversified CTAs that have a holding period shorter than 10 days, are willing to provide daily returns and are open to new investment. Newedge'sAlternative Investment Solutions Group, part of Newedge's Prime Clearing Services, is an innovator in providing investors with benchmarking tools that represent key hedge fund strategy styles.

About Newedge

Newedge[1], a world-leading derivatives broker, is 100% owned and controlled by Societe Generale[2].

Able to draw on multi-asset capabilities and an agency model, it plays a pivotal role in the fully-integrated global markets proposition offered to clients that includes research; bespoke investment solutions and hedging; access to more than 85 exchanges; agency execution; an industry-leading clearing proposition (listed and OTC); financing; and award-winning prime brokerage, including cross-margining capabilities. Newedge's clearing and execution services cover all major asset classes, from interest rates to credit, FX, equities, and commodities.

For more information, you can follow us on Twitter: @Newedge, or visit our website: www.newedge.com

[1] 'Newedge' refers to Newedge Group and all of its worldwide branches and subsidiaries. Newedge is lead regulated in France by the ACPR and AMF. Newedge is also regulated in various jurisdictions worldwide. For further information about a Newedge company, its regulatory status and services please check www.newedge.com.

[2] Societe Generale Corporate & Investment Banking (SGCIB) is a trade name for the corporate and investment banking businesses of Societe Generale. Newedge will be part of the SGCIB division. For more information on Societe Generale Group visit http://www.societegenerale.com/en/home and for more information on SGCIB visit: https://www.sgcib.com/

This document is for information purposes only, subject to change without notice and is not to be construed as an offer to buy or sell any financial instruments or securities. If this material is generated by or on behalf of Newedge USA, LLC and includes an analysis of the price or market for any derivatives, it should be construed as a solicitation for the purpose of the relevant CFTC Rules.

All information, prices or projections are subject to change without notice. Newedge makes no representation or warranty that the information contained herein is accurate, complete, fair or correct or that any transaction is appropriate for any person and it should not be relied on as such. The opinions, views and forecasts expressed herein reflect the personal views of the author(s) and do not necessarily reflect the views of Newedge. Some financial products and investments are subject to fluctuations in price and or value and investors may get back less than originally invested. Certain high-volatility investments can be subject to sudden and large declines in value that could equal or exceed the amount invested. Futures and options, as well as certain other financial instruments, are speculative products and the risk of loss can be substantial. Consequently only risk capital should be used to trade futures and options and other speculative products. Investors should fully understand the risks and potential losses and seek their own independent investment and trading advice having regard to their objectives, financial situation and needs. This information is not intended to be construed as investment advice. Newedge does not accept any liability or loss or damage arising from any inaccuracy or omission in or the use of or reliance on the information in this document.

Due to international regulations not all financial instruments/services may be available to all clients. You should be aware of and observe any such restrictions when considering a potential investment decision.

THE DISTRIBUTION OF THIS DOCUMENT IN OTHER JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW, AND PERSONS INTO WHOSE POSSESSION THIS REPORT COMES SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. BY ACCEPTING THIS REPORT YOU AGREE TO BE BOUND BY THE FOREGOING.

'Newedge' refers to Newedge Group SA and all of its worldwide branches and subsidiaries. Newedge Group SA and its branches are lead regulated by the Autorite de Controle Prudentiel et de Resolution. Newedge Group SA is also regulated by the Autorite des Marches Financiers in France. Newedge UK Financial Limited is authorized and regulated by the Financial Conduct Authority (FCA). Newedge Group (Zurich and Dubai branches) and Newedge UK Financial Limited do not deal with, or for, Retail Clients (as defined under MiFID, FCA rules and Dubai Financial Services Authority (DFSA)). If this material is distributed by Newedge Group Dubai Branch it is intended for Professional Clients only (as defined by the DFSA) and no other Person should act on it. Only Newedge USA, LLC is a member of FINRA and SIPC (SIPC only pertains to securities-related transactions and positions). Only Newedge Canada Inc. is a member of the Canadian Investor Protection Fund. Newedge UK Financial Limited and Newedge USA, LLC are Swap Dealers registered with the CFTC and NFA. Not all products or services are available from all Newedge organizations or personnel. If necessary, please consult our local office for details.


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Source: ENP Newswire


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