According to investment fund watcher Barclay Group, the average currency fund returned 4.5% in 2000.
It already has a China currency fund that it advises with Dreyfus, the Wisdom Tree Dreyfus China Yuan Fund (CYB).
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Rieschel reasons that the Chinese currency fund is necessary because certain deals are difficult for foreign capital to invest in.
However, despite the increase in local currency fund inflows this week, as well as the overall backdrop of monetary easing, emerging market-dedicated investors continue to allocate a greater portion of funds into dollar-denominated emerging market debt over the former favorite: local currency debt.
However, the correlation between flows into hard-currency bond funds and both local-currency bond funds and equity funds has decreased significantly lately, while the correlation between EM equity fund flows and EM local-currency bond fund flows has trended higher.
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They reportedly asked Michel Camdessus, the managing director of the International Monetary Fund, to prepare a proposal for setting up a region-wide currency stabilisation fund.
Patrik Safvenblad, an investment partner at London-based currency hedge fund Harmonic Capital, said a credit rating downgrade would be negative for sterling.
LONDON Last year was one that most currency-fund managers would like to forget.
WSJ: Strong Start to 2013 Hints at Revival for Currency Funds
The PowerShares DB G10 Currency Harvest Fund ( DBV) which takes long positions in the three G10 currencies with the highest yield and short positions in those with the lowest yield.
The view of another senior Treasury official, Under Secretary David Mulford, (expressed on the record at the London Economic Summit) to the effect that a currency stabilization fund for the Soviet Union would not be possible for at least 2-3 years a period of sufficient duration to permit structural reforms to precede ruble convertibility, will probably go by the boards within 6-9 months.
The view of another senior Treasury official, Under Secretary David Mulford, (expressed on the record at the London Economic Summit) to the effect that a currency stabilization fund for the Soviet Union would not be possible for at least 2-3 years -- a period of sufficient duration to permit structural reforms to precede ruble convertibility, will probably go by the boards within 6-9 months.
Without necessary currency reserves to fund imports, it is likely that the pound will fall in value sharply.
If you want to own the stocks in these funds but not their implicit currency bets, buy the fund and then short the corresponding currency.
In particular, it failed to increase further the lending capacity of the European Financial Stability Facility (EFSF), the single currency's rescue fund.
Fixed income fund managers piled into local currency debt of the big emerging markets for the third straight week, according to fund trackers at EPFR Global in Cambridge, Mass.
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The fund still avoids currency risk by buying sovereign debt and corporate debt priced in dollars.
How about having a professional fund manager trade currency futures for you?
Myanmar officials wanted to move more quickly on the currency liberalization than International Monetary Fund advisers suggested, according to people familiar with the process.
Some small countries, like Iraq, don't have functioning treasury-bond markets but have sold foreign-currency bonds internationally, giving fund managers another avenue to invest in them.
Brazil recently authorised its sovereign-wealth fund to trade currency derivatives.
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Senate Majority Leader Trent Lott said today Republicans want a fuller explanation of Herman's role in a meeting at the White House last year between President Bill Clinton, banking executives, Comptroller of the Currency Eugene Ludwig and Democratic fund-raisers.
The Market Vectors Local Currency EM Bond (EMLC) fund is down 1.4% by comparison.
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Or, if the currency board is dropped, the Fund would have to come up with a workable alternative to stabilize the rupiah.
In September Mrs Merkel must secure parliamentary ratification of a deal she agreed with other euro-zone leaders in July to expand the powers of the single currency's bail-out fund.
They happen whether they are due to our elected leaders failing to reach an agreement regarding the Fiscal Cliff or the credit markets freezing up or a currency crisis or a large hedge fund imploding.
The fund also holds China local currency bonds as well, but those are not easily accessible to the mainstream public.
If the Fund declares China's currency to be misaligned, America may be pleased, but relations with Beijing will be poisoned further.
Stable currencies continue to make local currency bonds a top pick for fixed income fund managers looking for yield, volume, and liquidity.
On July 23rd the firm introduced Market Vectors Emerging Markets Local Currency Bond ETF ( EMLC), a fund whose name describes exactly what it does.
Instead of reducing the role of the U.S. dollar, Zhou may be asking for a greater role of the Chinese currency in "special drawing rights" (SDRs), an international type of reserve currency established in 1969 by the International Monetary Fund.
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