Currencies as an Asset class
As an asset class currencies offer a market with abundant liquidity and low correlation to traditional investments. It has been shown that currencies offer systematic positive returns with low transaction costs.
Over the last few years the foreign exchange market has grown into a trillion dollar a day business. Due to the advances in communication and information, investor knowledge and expectations has increased, forcing money managers to take currency fluctuations into account. This has resulted in a huge burst of interest in currency overlay strategies and currencies as an asset class in their own right. Institutional investors such as hedge funds have played an important role in this development but as with most markets, retail investors are catching up and looking at FX as an interesting asset class with strong diversification and return-generating opportunities.
Background
Centa Asset Management is a financial services company based in Frankfurt am Main, Germany. It focuses on the world of currencies and offers specialist services in Asset Management, Currency overlay, Advisory and Trading.