Insch Kintore, a fund that uses gold in currency swaps, has announced that it has added additional currencies to its successful  strategy following investor demand.

The firm will now use Chinese renminbi as a pair to gold, the Russian ruble and the South African Rand.

From today, the Insch Kintore strategy will trade a portfolio of 10 gold cross rates which includes currencies of the six of the top ten 10 gold producing countries in the world. These include China, Australia, Russia, the US, Canada and South Africa. Although countries such as Peru, Indonesia, Ghana and Mexico are also large gold producers they do not meet the liquidity requirements for the fund.

According to the firm the selection process, testing and implementation for the changes are exactly the same as the criteria previously used for the other currencies.

All broker desks are prepared and have loaded the new currency pairs on to their trading platforms.

The new currency pairs will be synthetics and traded as rolling/spot, as has been done previously.

Each of the additional currencies have attractive interest rate differentials relative to the G7 currencies. For instance, China’s stands at 3.85 percent, Russia at 4.5 percent and South Africa at 3.75 percent. This, in addition to each country being among major gold producers, should aid the firm’s quest for alpha generation, a feat that it has repeated for a number of years.