The Dynamic Alternative Portfolio Fund is designed to track the performance of a proprietary Deutsche Bank index, the Deutsche Bank Dynamic Alternative Portfolio Index. The index includes a 60% hedge fund allocation in addition to foreign exchange derivatives and commodities.
The hedge fund allocation will be represented by the performance of indices in the S&P Hedge Fund series, including the S&P Hedge Fund Index, the S&P Event-Driven Index, the S&P Arbitrage Index and the S&P Directional/Tactical Index. Deutsche Bank chose the SPhinX investment program due to its low tracking error with the various S&P hedge fund indices, as well as its risk management and transparency platform, according to the press release.
With the Dynamic Alternative Portfolio Fund, private investors gain access via a single fund to different alternative asset classes. Within that investment universe, the asset classes are dynamically allocated with the goal of achieving attractive absolute returns over time. The initial asset allocation includes hedge funds, commodities and currencies.