Tue, Dec 6, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Swiss currency manager launches new gold notes share class of Insch Insight fund

Monday, October 26, 2009
Opalesque Industry Updates - Insch Capital Management SA has, in conjunction with Liechtensteinische Landesbank (Switzerland) Ltd and Prometeo SA, launched “Goldilocks: A Gold Note with Currency Enhancement” as a new share class of Insch Insight Ltd, its BVI domiciled fund.

Goldilocks is the first investment to combine the inflation protection properties and upside potential of Gold with a systematic means of capturing price movements in major currencies and offer capital protection.

Christopher Cruden, CEO of Insch, said: “Whatever lies ahead for global economies and financial markets, investors must preserve capital, protect the value of their money and still participate positively in price movements wherever possible.

“As ever, Gold is regarded as a safe haven, an inflation hedge and a currency in its own right. It seems natural to acknowledge these facts and prudent to incorporate the attraction of its `hard asset’ status with and enhancement of a balanced currency portfolio thus ensuring the preservation of capital without losing the potential for growth.”

Goldilocks is an innovative hybrid investment tool: 80% of the principal is allocated to a portfolio of Gold Notes, with a bullish view linked to the GOLDLNPM Index. This is combined with a 20% principal allocation to an actively managed Currency Enhancement Program with 4:1 leverage.

The investor obtains full capital protection on the Gold Notes component (80% of principal) and anticipates extra absolute returns from the attractive options structure. The currency component aims for consistent growth from the 20% invested principal but only exposes a maximum of 10% of the principal to risk due to a trailing 50% Stop-Loss system. For this reason, absent default by the Gold Note issures, investors recieve 90% capital protection.

Goldiocks will automatically redeem in 5 years but prior to that, investors have the benefit of monthly liquidity through the administator or they may dispose of their holding via a secondary market facility maintained by Prometo which offers daily liquidity.

“Goldilocks could be compared to a straightforward trade with a risk/ return pay-off of that is substantially more attractive than otherwise available from the equity or debt markets” said Geoff Baker, Director and head of trading at Insch.

The banks issuing the Gold Notes are required to have a credit rating of A+ or better at time of issue. Liechtensteinische Landesbank (Switzerland) Ltd is the depository and payment bank and carries an AAA rating.

Goldilocks will be open for subscription between 26th October 2009 and 27th November 2009 afer which no new subscriptions will be accepted.

Goldilocks is denominated in USD. Subsequent issues in EUR and GBP are planned. Minimum initial investment is $200,000.


INSCH CAPITAL MANAGEMENT SA
Headquartered in Lugano, Switzerland, Insch Capital Management SA (“Insch”) is a currency portfolio manager with a client base primarily comprised of banks and other financial institutions. Insch develops strategies that offer superior absolute returns commensurate with an acceptable level of risk. This is achieved through detailed quantitative research, exhaustive systems testing, robust portfolio construction and thorough due diligence. clc@inschinvest.com. www.inschinvest.com


Be

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. M&A - AllianzGI to acquire Sound Harbor Partners, SS&C completes acquisition of Wells Fargo's Global Fund Services business[more]

    AllianzGI to acquire Sound Harbor Partners Allianz Global Investors (AllianzGI), an active investment manager, announced that Sound Harbor Partners, a US private credit manager led by Michael Zupon and Dean Criares, have agreed to join its fast-growing Private Debt Platform. Under the te

  2. Hunt for yield pushes more investors into riskier assets[more]

    From FT.com: Pension funds and insurance companies have increasingly embraced riskier assets in their hunt for higher returns over the past five years. Alternative assets such as property, infrastructure, private equity and hedge funds have been bought up by institutional investors in a world where

  3. People - Nectar Financial hires senior investment team, Texas A&M replaces retiring foundation investment chief, Ex-Cadwalader partner Woolery makes another sudden exit, How to become a Python coder at a top hedge fund, by the co-CTO of Man AHL[more]

    Nectar Financial hires senior investment team Nectar Financial AG, a Swiss financial technology company for wealth and asset management, has announced that it has hired two key senior leaders to spearhead its digital asset management efforts. The company also announced that it has entere

  4. Activist News - Cognizant has introductory discussion with activist investor Elliott; to review letter, Starboard Value makes huge investment in Hewlett Packard, Hedge fund calls for removal of First NBC Bank CEO[more]

    Cognizant has introductory discussion with activist investor Elliott; to review letter From Indiatimes.com: Cognizant said it had an introductory discussion with Elliott Management after receiving the activist hedge fund's letter asking for a board shakeup, a buyback, a dividend and chan

  5. Opalesque Exclusive: Ireland relaxes treatment of direct lending funds[more]

    Bailey McCann, Opalesque New York: The Irish Central Bank has relaxed its treatment of direct lending funds, according to a recently released