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> invest in USD I think that's kind of an abuse of the term "invest". If you read their prospectus it's clear that they are looking for foreign currency arbitr
by landryraccoon 9y ago
> invest in USD
I think that's kind of an abuse of the term "invest". If you read their prospectus it's clear that they are looking for foreign currency arbitrage opportunities:
> The applications of the FIs must have at least 80% of their PL represented by
assets directly related or synthesized via derivatives to the variation of the North
American. The applications, together with those of the FIs invested in assets or
of public or private issuers, other than the UF, and
assets traded abroad, are limited to 50% of PL. The FIs will be able to operate in
derivative markets with the sole purpose of protecting positions held in cash until the
such limits, provided that they are referenced in assets and / or financial indicators aligned
to your goal. The fund may invest in FIs which apply a maximum of 10% of
financial assets traded abroad.
- cesarb 9y agoI'm sorry, but I'm not seeing where in that list says it is looking for arbitrage opportunities. What you quoted is just the list of restrictions on the kinds of investments the fund can make. The "targets" part, which you didn't quote, says the returns should attempt to follow the USD. And it seems to be working: the total return over 5 years was 73.92%, while the USD over 5 years increased 73.95%. That is, had I bought USD 5 years ago and sold it now, the return should be about the same as that fund. Which is the point: it's simpler to invest on that fund (or others like it) than to buy USD directly.
- deleted 9y ago[deleted]