The Markets

Emerging Markets Foreign Exchange Index Launches

In response to the rapid growth of investor interest in emerging markets and foreign exchange as asset classes in recent years, AIG Financial Products Corp (AIG-FP) has launched the AIG Emerging Markets Foreign Exchange Index, a new family of investable indexes.
Reported by Fred Schneyer

According to a press announcement, the AIG-EMFXI provides investors with a transparent, rules-based tool for passive exposure to emerging markets foreign exchange. The AIG-EMFX Benchmark Index replicates the return of investing in an equally weighted basket of 19 emerging markets currencies against the U.S. Dollar.

The AIG-EMFXI currently comprises the following currencies: Argentine Peso, Brazilian Real, Chilean Peso, Colombian Peso, Mexican Peso, Chinese Yuan, Indian Rupee, Indonesian Rupiah, Korean Won, Philippine Peso, Taiwan Dollar, Thai Baht, Czech Koruna, Hungarian Forint, Polish Zloty, Slovak Koruna, Israel Shekel, Russian Ruble, South African Rand, and Turkish Lira.

According to AIG-FP, estimated historical returns of the Benchmark Index would have been comparable to other emerging markets asset classes, yet with lower volatility.

More information is at http://www.aigfp.com.