Sat, Oct 22, 2016
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.

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.


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 - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. Other Voices: Follow the advice of investment consultants - I think not[more]

    Mark Rzepczynski, Founding Partner, Chief Investment Officer AMPHI Research and Trading, writes on Harvest Exchange: Investment consultants are a force to the reckoned with in the pension world. They advise and drive many pension decisions around the globe. Consultants literally control trillion