Wed, Feb 22, 2017
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. People - Kuwait wealth fund head Al Saad said to step down after 14 years[more]

    From Bloomberg.com: Kuwait Investment Authority is set to name Farouk Bastaki as managing director, replacing Bader Al Saad who ran the world's fifth-largest sovereign wealth fund for 14 years, a person familiar with the matter said. The KIA, as the fund is known, is finalizing the appointment, said

  2. Manager Profile - Eddie Lampert: a painful entanglement with Sears[more]

    From Moneyweek.com: "In the long run we are all dead." Lex in the Financial Times reached for the famous quote from John Maynard Keynes in January when, after a long and unforgiving decline, the clock finally appeared to be running out on Sears, the iconic US department store group. Yet the group's

  3. Investing - Hedge funds quit Aberdeen shorts as shares begin to recover, Hedge funds' next big short: U.S. malls, O'Connor fund owns 9.5% of Protalix Biotherapeutics, U.S. hedge fund takes position in Macau hotel The 13[more]

    Hedge funds quit Aberdeen shorts as shares begin to recover From Investmentweek.co.uk: The last two hedge funds to short Aberdeen Asset Management have removed their positions, as the fund group's shares begin to show signs of recovery after a difficult few years. According to the Financ

  4. Latin America, high yields and Asia Pacific strategies dominate hedge fund returns in January[more]

    Komfie Manalo, Opalesque Asia: Latin America (+7.04%), high yield (5.63%), and Asia-Pacific (+5.06%) strategies dominated hedge fund performance in January, data provider Hennesee Fund Research said. The bottom three strategies for the mont

  5. Investing - Hedge funds loading up on this dividend stock, The biggest hedge funds have been piling into bank stocks[more]

    Hedge funds loading up on this dividend stock From Incomeinvestors.com: Hedge funds are backing up the truck on Cameco Corp stock. Billionaire Jim Simons owns 389,000 shares. Other Wall Street titans - including Ray Dalio, Ken Griffin, and Chuck Royce - have been quietly building positio