Insch Capital Management has launched the Actively Managed Certificates (AMC) powered by Insch’s Kintore (Bidirectional Gold) strategy. The investment objective of the Insch Kintore strategy is to achieve capital growth in both favourable and unfavourable market conditions by using an actively managed approach trading gold either long or short vs. the G7 currencies: Australian dollar, Canadian dollar, Euro, Japanese yen, GBP sterling, Swiss franc, US dollar.
UniCredit Bank AG will act as issuer of the Certificates and will make a secondary market in them. The Certificates are open-ended and will offer daily liquidity via ISIN DE000HVB15X4. They will be listed on the Frankfurt Stock Exchange.
“We are very pleased to have the opportunity to offer the Kintore (Bidirectional Gold) Strategy to a broad investor audience,” says Christopher Cruden, CEO, Insch Capital. “Gold is a key component of many portfolios but up to now, investors have inevitably been confined to long, buy-and-hold positions. No more. These AMCs, particularly given their Frankfurt listing, open up an important new set of unique investment opportunities.”
There will be a two-week Initial Offering Period from 22nd June during which each Certificate will be offered at a minimum investment amount of USD100,000 or equivalent in other currencies. Trading will commence on 1 July and pricing will be daily at the prevailing market rate thereafter.
The Insch Kintore strategy was first offered through managed accounts and, through end May 2016, is up 26.74 per cent year to date and has proved to be particularly effective during periods when the gold price is moving strongly – either up or down.
Employing its extensive currency management experience, Insch designed this algorithm-driven systematic approach to appeal particularly to investors who require exposure to gold without necessarily wanting to go long, with the associated risks that such one-dimensional strategies carry.
Such risks have proved adversely consequential in the recent past as the gold price fell 40 per cent from September 2012 before staging a partial recovery in the past few months. The firm writes that the strategy also provides very substantial protection against the “tail risk” of equity, fixed income and commodity markets.
The Insch Kintore strategy was profiled in AlphaQ’s April edition. You can read that story here.
