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Chris Cruden, Insch Capital

Insch launches gold income product


Insch Capital Management has launched the Gold Income Actively Managed Certificates (AMC) powered by Insch’s award-winning Kintore (Bidirectional Gold) strategy.

The firm writes that the investment objective of the Gold Income version of the Insch Kintore strategy is to generate high income distributions regardless of interest rates in both favourable and unfavourable bond market conditions, by employing 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.

The Certificates are open-ended and will offer daily liquidity via ISIN DE000HU89R51. They will be listed on the Frankfurt Stock Exchange.
The Insch Kintore strategy won the EuroHedge Awards 2016 for the category Managed Futures – under USD500 million.

“The Kintore (Gold Income) Strategy is both proven and well timed,” says Christopher Cruden, CEO, Insch Capital. “Many investors demand income yet rightly fear the current interest rate environment. By paying trading profits out to investors twice yearly – just like a bond – investors can receive high income without correlation to the devastating effects of interest rate rises. These AMCs, particularly given their exceptional liquidity and Frankfurt listing, open up an important new set of unique investment opportunities to Fixed Income investors.”

There will be a two-week Initial Offering Period from 1st March 2017 during which each Certificate will be offered at a minimum investment amount of USD100,000 or equivalent in other currencies. Trading will commence on 15th March and pricing will be daily at the prevailing market rate thereafter.
The ‘absolute return’ version of the Insch Kintore strategy was first offered as an AMC on 1st July 2016. In its first six months, the AMC gained 7.94 per cent.

Insch writes that employing its extensive currency management experience, it has designed this unique algorithm-driven systematic approach to appeal particularly to investors who require income but fear the current risks of traditional fixed income securities.

“In the bond market, risks are at their highest since the financial crisis, after seven years of global quantitative easing. According to Bloomberg, there are now USD7.8 trillion of bonds with negative yields. The strategy also provides very substantial protection against the ‘tail risk’ of equity, gold and commodity markets.
“The Kintore (Gold Income) Strategy would have paid investors annual cash distributions of approximately 15 per cent per annum and 7.15 per cent from 1st Jul to 31st Dec 2016 – far exceeding fixed income investments. For January 2017 alone, the accrued coupon would be 0.71 per cent, far higher than that of an analogue bond,” says Cruden.

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