DALLAS, March 21, 2011 /PRNewswire/ -- AFT announced today its launch of the Dynamic Inflation Strategy Index™ (DISI™). The DISI™ aims to reflect upward trends in physical commodity futures prices during inflationary periods and seeks to minimize exposure to physical commodity futures during flat or declining price trends in the commodity futures markets.
"The launch of the DISI™ is the result of AFT's continued research and development, which expands our robust line of futures-based index offerings," said Victor Sperandeo, President and CEO of AFT. Sperandeo added, "The DISI™ meets the market's need for a futures index that offers targeted exposure to commodity futures prices, particularly during inflationary periods when physical commodity prices tend to rise. We have just witnessed unprecedented growth in the Federal Reserve's Balance Sheet and investors are becoming fearful of impending inflation. We believe that targeted exposure to rising commodity futures prices can help to protect purchasing power during inflationary periods. Therefore, we think now is an opportune time to bring to market an index like the DISI™."
The DISI™ uses a dynamic, rules-based process to allocate between a diversified portfolio of highly liquid commodity and interest rate futures contracts. The index will only hold long positions in those Commodity Sectors that are determined to be rising. If the index is not allocating full exposure to the Commodity Sectors, the Interest Rate Sector will make up the remaining allocation, allocating such exposure to either U.S. Treasury bond or note futures, depending on a rules-based process.
The index is available for license to the financial and institutional community on a global basis. For further details, as well as daily index values published commencing March 1, 2011, please visit www.aftllc.com
About Alpha Financial Technologies - AFT was founded in 2001 by Victor Sperandeo. Widely known as "Trader Vic", Victor is a trader, index developer and financial commentator with over 40 years of experience on Wall Street, trading numerous markets. He has traded independently for, among others, George Soros and Leon Cooperman.
AFT is a market leader in the development of futures-based investable indexes. AFT's dedicated research and development team creates rules-based, quantitative trading methodologies utilized by the financial and institutional community on a global basis. AFT's quantitative models and strategies employ both fundamental and technical analysis and seek to identify and reflect price trends across the global futures markets. AFT is known for its long-short futures indexes: the Diversified Trends Indicator™ (DTI®), Commodity Trends Indicator™ (CTI®), and the Financial Trends Indicator™ (FTI™). Most recently, AFT launched the FX Trends Index™ (FXTI®) in August 2010. As of March 1, 2011, assets linked to the indexes of AFT and its affiliated companies are estimated at over 3 billion USD.
Investors cannot invest directly in an index. AFT does not direct client accounts or provide commodity trading advice based on or tailored to the commodity interests or cash markets or other circumstances of a particular client. This description is intended solely to provide an introduction to DISI™. There is no necessary correlation between the DISI™ and inflation. No assurances can be given that a product replicating the DISI™ will achieve its objectives or that losses will be avoided. Commodity futures prices can be volatile. DISI™ is based on futures, not cash market prices; those prices may differ materially. DISI™ can only benefit from rising prices in commodity sectors then included in its monthly index composition. There can be no assurance that a particular commodity sector will be included in the monthly index composition when and if a sudden increase in commodity futures prices occurs in such sector. In addition, during periods in which the DISI™ does not include an allocation to a commodity sector in its index composition, DISI™ may experience substantial declines as a result of the index selection methodology allocating that sector's weighting to U.S. Treasury bond or note futures, which may be highly volatile and can be expected to vary widely in response to prevailing interest rates, investor confidence in the U.S. economy and many other factors. Past performance is not necessarily indicative of future results.
SOURCE Alpha Financial Technologies, LLC