Fri, Apr 25, 2014
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   |   
Banner
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. Opalesque Exclusive: Rainwater and Blue Sky - an Australian water fund emerges[more]

    Bailey McCann, Opalesque New York: Financial reporters often tout new funds and investments as uncorrelated investments, but few can say they are uncorrelated to everything but weather. Enter Blue Sky Alternative's water fund which invests in the permanent rights to Australia's water. Sev

  2. Regulatory – Expect greater SEC scrutiny of hedge funds that share information or collaborate in advance of their trades, Alternative funds to get SEC test for leverage, liquidity[more]

    Expect greater SEC scrutiny of hedge funds that share information or collaborate in advance of their trades From Thelawyer.com: A recent Wall Street Journal article — ‘Activist investors often leak their plans to a favoured few’ — focused attention on ‘activist’ investors and stock analy

  3. …And Finally – This week's least competent criminal is Austrian[more]

    From ABCnews.go.com: A German sought by authorities for alleged fraud has been arrested in Austria — after dropping into a police station to ask officers whether he was under investigation. Police in Salzburg said the 59-year-old man walked into a police station in the city on Friday night. Sp

  4. Investing – Hedge funds find pitfalls along with profits in real estate ventures, Marcato Capital Management makes new bet on Dillard’s[more]

    Hedge funds find pitfalls along with profits in real estate ventures From Law360.com: Hedge funds have joined the rush to real estate deals and development in recent months to close the financing gap left by tightening bank standards, but attorneys say many aren't prepared for the disclo

  5. Agecroft Partners estimates 90% of hedge funds using social media[more]

    The use of social media has increased significantly within the hedge fund industry over the past couple of years. Social media is broadly used by investors as part of their due diligence process on hedge funds, by service providers in their sales efforts to hedge funds, and by hedge funds to enhance