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DB brings out Platinum Option Overwriting Plus Fund.

Byline: matthew@cpifinancial.net (Staff Writer)

The fund, which is aimed at institutional investors, tracks the DB Option Overwriting Plus Index strategy, which invests 100% in a benchmark index (DJ EuroSTOXX 50, DAX or SMI) and enters into exchange-traded option contracts on the corresponding price return benchmark index.

Every month, the strategy evaluates two separate signals with a view to predict the future direction of the underlying index:

Price Momentum: is based on a comparison of short-term and middle-term performance.

Implied Market Volatility: as materialised by the VSTOXX Index (Dow Jones Euro Stoxx50 Volatility Index).

These signals are based on the intrinsic behaviour characteristics of equity markets: upward trends are usually accompanied by lower volatility (except in bear market rally situations) while bear markets experience higher volatility. Using these signals, the index aims to adapt its option positions for different market behaviour.

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Publication:CPI Financial
Date:Feb 1, 2010
Words:156
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