Deutsche Asset & Wealth Management (DeAWM) has launched MSCI Germany Hedged Equity Fund to its db X-trackers platform, the first exchange traded fund (ETF) enabling direct exposure for investors to the German equity markets while mitigating exposure to fluctuations between the US dollar and the euro value, effective May 31, 2013, onwards.
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The new Germany Hedged Equity Fund aims to provide access to Germany, while simultaneously decoupling German equity investment from currency exposure. Investors could only access the German stock market through unhedged ETFs, prior to this launch, that subjected the funds to the fluctuations in the currency market, which may have eroded gains in equity investments, according to DeWAM.
Martin Kremenstein, DeWAM Americas’ head of passive asset management, said: "US investors are looking for products with built-in protection against fluctuations between the dollar and non-US currencies that also provide pure exposure to equity markets," adding that the new fund is the first ETF focused on Germany that responds to this demand.
DeWAM’s new MSCI Germany Hedged Equity Fund aims to seek investment results that correspond generally to the performance, before fees and expenses, of the MSCI Germany US Dollar Hedged Index, which measures the performance of the large and mid cap segments of the German market.
DeWAM’s US exchange traded products (ETP) platform includes 53 ETPs with approximately US$12 billion in assets under management. Launched in 2006, the platform is second largest ETP provider in Europe and the fifth largest in the world, with approximately US$60 billion in assets under management.
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