Article / 29 July 2014 at 8:20 GMT

Saxo FX Carry portfolios: Gains despite Kiwi beating

Head of Macro Strategy / Saxo Bank
By Mads Koefoed

Performance: The USD-denominated World Carry portfolio delivered another positive return in the seven days ending yesterday, the fourth in a row. This time the portfolio, which we track directly, returned 0.5 percent following a gain of 1 percent last time. The run-up in recent weeks has mostly closed the remainder of the drawdown though there is still a gap of 3.4 percent to cover. Since inception in October 2013 the portfolio has returned -3.2 percent having been down more than 14 percent at one point earlier in 2014.


Most of the positions contributed positively to this week's performance, but a roughly 2 percent nosedive in NZDUSD saw this position subtract quite a bit for overall performance at -1 percentage point. The New Zealand central bank (RBNZ) talked down the currency last week giving guidance which was much more dovish than expected.


The next performance update will take place on August 5 at 08:00 GMT while the next portfolio rebalancing takes place on August 19 at 08:00 GMT.

A spreadsheet has been provided for easy calculation of positions.
-- Edited by Clare MacCarthy
Mads Koefoed is head of macro strategy at Saxo Bank.


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