Selling Strategy Indices

These indices have been sold under the following premises which need not be always true,

1. They offer a new asset class that is uncorrelated to conventional asset classes such as equities, bonds and commodities.

2. Compared to hedgefunds and mutual funds, these strategies are very transparent and the client can buy them only if they like the idea behind the strategy.

3. Some types of strategies also benefit from accounting reasons, for instance, in Germany, Notes linked to interest rates can be issued in the Schuldshein format. This enables interest rate linked strategies to be issued as Schuldsheins.