Alpha Financial Technologies

INDEXES

AFT is widely known for its three core trend-following, futures-based indexes: The Diversified Trends Indicator™ (DTI^®), The Commodity Trends Indicator™ (CTI^®), and The Financial Trends Indicator™ (FTI™). These indexes were formerly licensed to, and branded by, Standard & Poor’s as the S&P DTI, S&P CTI, and S&P FTI.

These are the approximate market sectors and sector weightings included in the DTI® as of the beginning of each year (assuming the energy sector is long). The DTI® individual market components, sectors, and related weightings, as well as other aspects of the calculation of the DTI®, are subject to change at any time.

Recently AFT launched two new trend-following, futures based indexes:

FX Trends Index™ (FXTI^®) - a quantitative rules-based long-short methodology designed to reflect price movements across a basket of 11 foreign exchange futures contracts.

AFT’s Core Indexes:

Diversified Trends Indicator™: A long/short managed futures index
Commodity Trends Indicator™: A long/short commodity futures index
Financial Trends Indicator™: A long/short financial futures index

The DTI^®, CTI^®, and FTI™ are long/short rules-based indexes constructed of liquid commodity and financial futures contracts. The CTI^® and FTI™ are sub-indexes of the DTI^®, and therefore follow the same investment methodology.

The DTI^®, CTI^®, and FTI™ are designed to capture both rising and falling price trends via long and short positions. The indexes are historically non-correlated to traditional bond and equity returns over long-term periods, making them a potentially valuable diversification tool.

Limiting the volatility of the DTI^®, CTI^®, and FTI™ was a guide in the determination of the methodology. The components of the indexes were selected based on fundamental characteristics and are limited to highly liquid, U.S. exchange-traded futures contracts.

DTI^®, CTI^®, and FTI™ Highlights

Rules-based indexes designed to reflect trends in diversified commodity and financial futures markets
Aim to capture both rising and falling price trends by taking long or short positions (long or flat in the case of the Energy sector)
Provide valuable portfolio diversification due to their historically low correlation to traditional asset classes over extended periods (of 12 months or more)
Monthly rebalancing to control risk and maintain proper diversification
Fully transparent investment methodologies with daily liquidity of underlying components
Indexes do not use leverage

This description is intended soley to provide an introduction to AFT's indexes 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. 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 products. 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.

Terms of Use

Copyright © 2011 Alpha Financial Technologies, LLC. All rights reserved | Site design by MDVC Creative, Inc.