Opalesque Industry Update - The Precious Metals Element Program aims to answer investors’ need to increase and diversify exposure to
gold and related metals while reducing its potential downside volatility. Four Elements Capital
believes that in the current currency debasing environment, Gold and the Program will
present opportunities to protect against medium term asset inflation. The Program also
aims at hedging against the increased volatility observed in the Gold price over the last few
The Program is long short and decorrelated to Gold on a medium term basis. The strategies included in the Program have been successfully deployed and traded over the past three and a half years within the Earth Element Fund. Furthermore, the Program allocation has been replicated daily on a paper trading basis since 1st November 2010 showing similar returns over a long only Gold allocation with about half its volatility (annualized volatility of 19.51% for Gold compared with 11.18% for the program over the period).
The Program is being launched today through Deutsche Bank dbSelect platform, with exposure to Gold, Silver, Platinum and Palladium and trading initially in three exchanges - NYMEX, COMEX and TOCOM. The Program is accessible from today onward through a Deutsche bank issued certificate listed in Luxembourg with daily liquidity.