Geneva-based specialist currency portfolio manager DynexCorp has launched two new investable currency indices, Dynex Multi-FX and Dynex FX Formula 1. The new indices are based on Deutsche Bank’s FX Select platform which includes over 170 pure alpha FX managers, (independently vetted by Mercer Consulting), 70 of which have been accepted for inclusion in FX Select. Currency alpha as an asset class is still largely absent in client portfolios, mostly because individual FX manager returns with a history of ten years or more tend to be volatile and often display cycles of recurring negative years, according to Dynex. DynexCorp’s investable currency indices are designed to overcome both survivorship bias as well as cyclicality. Dynex FX Formula 1 Index chooses monthly up to ten FX managers through a set of layered algorithms, and then determines individual allocation weights on the basis of another set of proprietary algorithms. For its Multi-FX Index DynexCorp chose a set of historically consistent and seasoned pure alpha currency managers. It therefore anticipates that changes in manager composition will occur infrequently. Allocations weights, on the other hand, are algorithmically rebalanced monthly.