January 24, 2011

FCI Rolls Out Absolute Returns-Forex Tool

FCI says its foreign-exchange program can help investors use futures contracts to preserve purchasing power

Financial Commodity Investments, an alternative-investment asset management firm in Herndon, Va., said Friday it launched a program to help investors take advantage of the volatility in the financial and foreign-currency markets and preserve the purchasing power of their U.S. dollar-denominated assets.

The long-term investment offering, known as the FX Premium Program, is based on the trading of spot forex and financial futures, according to the company. Faced with an unpredictable economy, the group says, those investing with FCI can potentially hedge their U.S. dollars and maintain their purchasing power as the value of the U.S. dollar continues to decline.

"The goal of this program is to target absolute returns in the forex currency markets," said FCI President Craig Kendall, in a phone interview Monday.

"We want our clients to view this program as a long-term investment, one that may generate capital appreciation over time," Kendall explained.

Clients can open a managed-futures account with their financial advisor or FCI for $50,000 or less, he shares. FCI then trades the account for the client and has limited power of attorney over the account.

“We adjust with a focus on absolute returns,” Kendall said. “We can hedge against a weaker dollar down the road or adjust if the dollar strengthens, and we take advantage of the currencies going up as the dollar weakens. In other words, we will manage a client's assets and seek to take advantage of the volatility in the currencies markets over time.”

A client of a financial advisor with a wirehouse or independent broker-dealer, he says, can easily incorporate this program into their portfolio. “We make choices and do the trading, based our analysis and research, which is then executed via your account,” Kendall shared.

Financial Commodity Investments says it manages alternative-investment strategies with the purpose of achieving absolute returns while managing risk to minimize losses and protect against adverse market movement.

FCI only trades in liquid commodity markets, including energy, metals, financials and indices, to achieve absolute returns. It serves more than 700 clients in 42 states and 27 countries.

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