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These are the approximate component weightings currently included in the FXTI^® as of the beginning of each month. Over time, the individual market components and related weightings, as well as other aspects of calculation of the FXTI^®, are subject to change. However, there is no requirement for the weightings of the FXTI^® to be adjusted in response to future changes in GDP, credit stability or liquidity.

FX Trends Index™ (FXTI^®)

The FX Trends Index™ (FXTI^®) is a quantitative, rules-based methodology designed to reflect price movements across a basket of 11 foreign exchange futures contracts. The contracts are represented on either a “long” or “short” basis depending on recent price trends. With the ability to take long or short positions, the FXTI^® is designed to capture the economic benefit over long time periods derived from both rising and declining price trends within a basket of global currencies.

The key characteristics of the FXTI^® include:

11 FX futures weighted according to Gross Domestic Product (GDP), credit stability and liquidity, among other things
Long or short positions attempt to follow price trends by comparing the current component price to a customized weighted moving average
Directional position determination and component
rebalancing occurs monthly

FXTI^® Product Update December 2011

This description is intended solely to provide an introduction to the FXTI^® and further details are available upon request. No assurances can be made that AFT’s indexes or other products will achieve their objectives or that losses will be avoided. Past performance is not necessarily indicative of future results.

Investors cannot invest directly in an index or other product developed by AFT. Investment products utilizing AFT products are speculative and involve a substantial degree of risk. One of the risks associated with the products is the complexity of the different factors which contribute to their results, as well as to their correlation or non-correlation to other asset classes. The products could decline in a wide range of different market scenarios, including ones in which similar financial products rise substantially. The products should be considered long-term investments; over the short-term there is a much greater possibility that the products may decline substantially, causing significant losses. Any factors which contribute to trendless markets (a lack of sustained trends in many markets) or “whipsaw” markets (in which price movements reverse suddenly or repeatedly) are likely to be adverse to the trend-following methodology of the products. Replication of the FXTI™ may involve forward currency contracts which, unlike futures contracts, are traded off-exchange and therefore are subject to, among other things, counterparty risk, “bid-ask” spreads which may vary widely and the risk of periods of illiquidity. See "Summary of Risk Factors" in the Terms of Use.

AFT does not provide any form of investment advice. AFT solely receives a license fee from licenses of its indexes. None of the information or material on this website is intended, or should be used, as any form of advice or recommendation. In particular, 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. All information provided herein is subject to change without notice.

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