Cash is King But Which Nation will Rule Stand 134

1
Cash is KingBut Which Nation will Rule?Stand 134

• Hugh Clark
• Arbiter Fund Managers Limited, Tenterden House,
• 3 Tenterden Street, Hanover Square, Mayfair,
  London W1S 1TD
• Tel. [phone] www.arbiterfm.com

Arbiter Fund Managers Limited is regulated by the
FSA.
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Cash is King

• CASH
• Most basic asset
• Low risk low return
• But all change if use different currencies

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Cash is King

• Asset Classes
• Equities
• Bonds
• Property
• Currencies

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Cash is King

• Currency as an Asset Class
• 4 Notable Factors
• Liquidity - 2tr per day traded
• Volatility can be significant
• Leverage
• Correlation

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Cash is King

• Currency as an Asset Class
• Liquidity
• 2tr per day traded most liquid asset
• Cheap to trade
• Can move large sums easily

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Cash is King

• Currency as an Asset Class
• Volatility
• Generally lower than equities
• Spends 85 of time in 6-10 zone
• But can reach extremes
• Currency economic pressure valve

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Cash is King

• Currency as an Asset Class
• Leverage the upside
• Liquidity means very high leverage possible
• No external borrowing
• - Trade on margin
• Modest returns can yield great profits

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Cash is King

• Currency as an Asset Class
• Leverage the downside
• Large exposure can be gained with small deposit
• Increased Risk
• Small drawdown equates to large loss

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Cash is King

• Currency as an Asset Class
• Correlation
• Very low correlation with other assets
• Potentially ideal alternative to diversify
  portfolio risk

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Cash is King

• Currency as an Asset Class
• Summary
• Easily leveraged asset, excellent liquidity, low
  correlation, high potential returns.
• Variable volatility, high risk with high leverage

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Cash is King

• Currency as an Investment
• Structure
• Strategy
• To maximise potential upside and minimise
  potential downside

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Cash is King

• Currency as an Investment
• Structure
• Individual Margin Accounts - free to set up,
  instant leverage, low transaction costs
• Spreadbetting possible any profits tax free
• Performance dominated fee structure

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Cash is King

• Currency as an Investment
• Strategy
• High leverage requires low drawdown
• Philosophy good times maximise profit, bad times
  minimise losses
• Principle protection

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Cash is King

• Currency as an Investment
• Arbiter Fund Managers Limited
• London Based Currency Hedge Fund Manager
• Started in 1997
• Currently with circa US1.4bn AUM
• Smart Momentum Programme
• MCM Programme

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Cash is King

• Currency as an Investment
• Smart Momentum
• Short term currency trading
• Major currencies only
• Systematic trading with no human influence

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Cash is King

• Currency as an Investment
• Smart Momentum
• Intensive technical process
• Risk management overlay

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Cash is King

• Currency as an Investment
• Smart Momentum
• Unleveraged gross performance

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Cash is King

• Currency as an Investment
• Smart Momentum
• Average gross performance 11 pa
• Average drawdown 1.1 pa

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Cash is King

• Currency as an Investment
• Smart Momentum
• Any investment should be long term
• 5 year capital protection available with 4x
  leverage

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Cash is King

• Currency as an Investment
• MCM Programme
• Multicurrency Mortgages
• Not a mortgage, but a currency investment which
  mirrors a multicurrency mortgage
• Similar structure
• Medium term technical trading
• Low historical drawdowns

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Cash is King

• Next Steps
• Most business done through IFAs
• SIPP-able
• Generous fee sharing arrangment
• Talk to us

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Cash is King

• This document has been prepared by Arbiter Fund
  Managers Limited (Arbiter) for circulation to
  persons reasonably believed by Arbiter to be of a
  kind described in Articles 50 and 50A of the
  Financial Services and Markets Act 2000
  (Financial Promotions) Order 2005, Sophisticated
  Investors and Self-certified Sophisticated
  Investors, or to whom this document may
  otherwise lawfully be issued or passed on to give
  preliminary information about the investment
  proposition described herein. It is a
  confidential communication to, and solely for the
  use of, the recipient.
• Its purpose is to give initial detail in order to
  gauge investor interest, so that Arbiter can
  decide whether to bring the project to put a
  formal proposal to such investors. The
  information contained in this document is subject
  to updating, completion, modification and
  amendment.
• This document does not constitute an offer to
  sell investments and may not be used to make such
  an offer. Therefore no person receiving a copy
  of the document may treat it as constituting an
  offer or invitation to him / her to buy
  investments, nor may he / she copy it for
  transmission to another person. If, however, an
  offer to sell investments is made in the future,
  it will be subject to information circulated by
  Arbiter at the time in a formal prospectus or
  equivalent document and not on the basis of the
  information contained in this document.
• It is the responsibility of every person
  receiving a copy of this document to satisfy
  himself / herself as to the full observance of
  laws of any relevant country, including obtaining
  any government or other consent which may be
  required or observing any other formality which
  needs to be observed in that country.
• This document is written for the benefit of the
  category of person described in the first
  paragraph above. It is not addressed to any
  other person and may not be used by them for any
  purpose whatsoever. It expresses no views as to
  the suitability of the investments described
  herein to the individual circumstances of any
  recipient.
• Arbiter is Authorised and Regulated by the FSA in
  the UK.

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Cash is KingBut Which Nation will Rule?Stand 134

• Hugh Clark
• Arbiter Fund Managers Limited, Tenterden House,
• 3 Tenterden Street, Hanover Square, Mayfair,
  London W1S 1TD
• Tel. [phone] www.arbiterfm.com

Arbiter Fund Managers Limited is regulated by the
FSA.