During the last three years the US dollar has appreciated by over 25% against major currencies (see Exhibit 1 below). This rally has been driven by a series of events. These include the announcement, by the Bank of Japan (BoJ) in July 2014 of an extension to its quantitative easing (QE) programme, the prospect of the US Federal Reserve (the Fed) embarking on a new cycle of hikes in official rates in an environment of falling commodities prices and a devaluation of the Chinese yuan in August 2015.
Etienne Vincent - Head of Global Quantitative Management, THEAM
Raul Leote de Carvalho - Deputy Head of Financial Engineering at BNP Paribas Investment Partners
Adding a constraint to any investment management process can only reduce its efficacy. However, investors often have explicit or implicit constraints with which they are obliged to comply.
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Investments in the aforementioned fund are subject to market fluctuation and risks inherent in investing in securities. The value of investments and the revenue they generate can increase or decrease and it is possible that investors will not recover their initial investment. Source: BNP Paribas Investment Partners.