A SYSTEMATIC TREND-FOLLOWING STRATEGY
EMPLOYING GOLD AS A CURRENCY
1
Agenda
Page
•
•
•
•
•
•
•
•
•
•
2
Executive Summary
3
Strategy Overview
4
The Edge
9
Investment Process and Risk Management
17
Performance and Risk Factors
22
Key Points Summary
28
UniCredit Actively Managed Strategy Certificates
30
Investment Matrix
33
Insch Capital Management Structure and Team
34
Disclaimer
39
Executive Summary
•
FOCUS - Insch Capital Management SA is a specialist asset
manager with >15 years experience of researching, developing and
managing algorithmic investment strategies.
•
HISTORY OF SUCCESS - The philosophy behind Insch Kintore
draws on the time-proven methodology underlying Insch Kintillo
(Interbank Currency Program), a disciplined, algorithmic, trendfollowing investment strategy dating back to January 2000.
•
PERFORMANCE - Since July 2010, the compounded returns of Insch
Kintore are 257.3%, versus -2.4% for Gold and 129.3% for the S&P
Index.
•
THE EDGE - Insch Kintore has bi-directional exposure to the price
of gold in G7 currencies. This range of assets offers an ideal
environment for a systematic, trend-following strategy with a medium
to long holding period.
3
Insch Kintore Strategy Overview
•
•
•
•
Strategy:
Systematic, trend-following
Markets:
Gold against G7 currencies
Time Horizon:
Medium to Long Term
Performance:
Target Return p.a. Target Std. Dev. p.a.
15.00%
•
25.00%
Risk Management:
– Diversification over currencies
– Diversification over time-frames for trend-following
– Every position has an integrated trailing stop-loss
– Strict adherence to measured and tested (known) rules
4
Insch Kintore has an EDGE. – Why?
•
Liquidity – The investable gold market is larger than all sovereign debt
markets except for US and Japan and all FX markets except USDEUR,
USDJPY and USDGBP. The average daily trading volume for gold exceeds
$200billion/day, rivaling the volumes of major currency pairs.
•
Unmatched Transparency – Pricing is real–time and continuous: Gold
can be traded 24/7 around the world at low price spreads, free from
credit risk and counterparty risk.
•
Genuine Bi-Directionality – Allows for a low downside correlation to
other investments, whilst capturing the upside and outperforming over
the longer term. There are no investment, technical, regulatory or moral
constraints on being either long or short.
•
Discipline – Strict adherence to inviolable rules removes the two most
destructive forces in investment: Ego and Emotion.
•
Timeliness – The opportunity set for investing is shrinking: downward
pressure on equities and bonds due to expectations of a tighter Fed policy
combined with low returns in money markets.
5
Insch Kintore as an Investment
•
Absolute Return Generation – Exploits market inefficiencies and
various pricing factors (government policies, inflation rates, fund flows) to
produce consistently high returns.
•
Fat Tail Protection – Reduces the “worst case” performance scenario
losses in a traditional portfolio.
•
Diversification – An allocation can substantially increase the Sharpe ratio
of a portfolio.
•
Low Correlation – Provides low correlation to HFMs, CTAs and traditional
investment portfolios.
•
No Capacity Constraints – Huge daily trading volume in gold and FX
markets.
•
Quantitative / Algorithmic – Particularly well suited to volatile market
conditions – An important quality during equity and bond markets turmoil.
*The results above are found within a wide range of academic studies as well as our own
research (see following slides).
6
Is Insch Kintore a Gold Investment or a Currency investment?
- And does it matter?
•
Gold is convertible 24/7 as a highquality and liquid asset*.
•
Gold is a store of value: a noncorrosive metal, ideal for
preserving wealth*.
•
Medium of exchange: gold can be
used to purchase goods and
services in some parts of the
world*.
•
The forward curve of Gold is in
permanent contango, a reflection of
the time value of money.
*According to WGC.
7
As long as it meets the criteria
of fat tail protection, absolute
return generation, low
correlation, liquidity,
transparency and unlimited
capacity, the label attached to
the underlying is of no
consequence.
Timeliness for gold centric investments
•
Gold volatility is still relatively low. It may rise in a brief period
of time.
CBOE Gold Volatility Index
60
50
40
30
20
10
0
8
The EDGE – Convexity
•
Insch Kintore’s payoffs are similar to buying a straddle on gold.
Insch Kintore versus Gold Monthly Returns
10%
Monthly Returns
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
1
9
2
3
Gold Return Quintiles
4
5
The EDGE – Gold Upside Participation
Performance in Best Months for Gold
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
Aug-11 Jan-12 Feb-16 Jun-16 Apr-11 Jan-15 Jul-11 Jul-13 Jun-14 Feb-14
Gold Spot
10
Insch Kintore
The EDGE – Gold Downside Non-Correlation
Performance in Worst Months for Gold
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
Sep-11 Jun-13 Dec-11 Nov-16 Apr-13 Jul-15 Nov-15 Jan-11 May-12May-13
Gold Spot
11
Insch Kintore
The EDGE – Equity Downside Non-Correlation
Performance in Worst Months for S&P 500 Index
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
Sep-11 May-12 Aug-15 Aug-11 Jan-16 Aug-10 Jan-14 Aug-13 Jan-15 Sep-15
S&P 500 Index
12
Insch Kintore
The EDGE – Bond Downside Non-Correlation
Performance in Worst Months for DJCBP Index
50%
40%
30%
20%
10%
0%
-10%
Jun-13 Nov-16 May-13 Nov-11 Jun-15 Sep-14 Jun-11 Oct-16 Apr-15 Dec-10
DJCBP Index
13
Insch Kintore
The EDGE - Tail Risk Protection vs. Other Asset Classes
Worst Drawdowns per Asset Class vs. Insch Kintore
100%
91.54%
80%
60%
42.92%
33.00%
40%
20%
17.79%
9.80%
22.26%
12.39%
16.21%
0%
-20%
-40%
-17.03%
-29.63%
-41.88%
-60%
-80%
-68.09%
S&P 500 04.2011 - Eurostoxx50 04.2011 - Crude Oil 06.2014 09.2011
05.2012
12.2015
Kintore 1x
14
Kintore 2x
Gold 08.2011 12.2015
Investment Process
Signal Generation and Risk Management
•
•
The portfolio is comprised of G7 currencies versus gold.
•
Every position is “risk equivalent” at inception, i.e. all positions are
equivalent in terms of percentage of portfolio, volatility and risk.
•
There are five exposure regimes: twice short, short, flat, long and twice
long. A flat exposure occurs when the proprietary
volatility measures fall outside predefined
volatility bounds.
Time
Max Speed
•
•
15
Signals are generated based upon price breakout, volatility, moving
average crossing and other proprietary measures.
Horizon
Positions are maintained until the price level and
volatility trigger a reversal or an exit signal.
Stop and reverse signals are taken as long as
volatility constraints are not exceeded.
Momentum
Volatility
The System
Price
Data
feeds
Insch
Kintore
Algorithm
Signals
Target
Positions
•
100% systematic, with no discretion – Price is the only input.
•
Every account gets the same signals at the same time.
•
The algorithm is executed automatically once a day, every trading day, at
1PM (UK).
•
Risk filters and trailing stops are incorporated into the Algorithm.
•
Multiple redundancies on the Server hosting the algorithms with automated
daily backups.
•
Multiple price data feeds.
•
Robust connectivity - A new account can easily be ‘plugged’ into Insch
Kintore depending on Execution Broker connectivity through FIX or other
APIs available using various programming languages.
16
Investment Process
Market Evaluation – Insch Kintore Captures High Probability Trends
XAUUSD Actual Trade Example
17
Green Line = Profit
Green Arrow = Long Exposure
Red Line = Loss
Red Arrow = Short Exposure
Investment Process
Insch Kintore captures reversals in gold price
Oct-Dec 2016: +24.6%
Insch Kintore
Daily Net Exposure to Gold and NAV
20
1400
15
1300
10
1200
5
1100
0
1000
-5
900
-10
800
-15
700
Net Exposure
18
Gold Price Index
Insch Kintore
Investment Process
Insch Kintore captures reversals in gold price Feb 2015 – Jun 2017: +60.1%
Daily Net Exposure to Gold and NAV
15
10
Net Exposure
Gold Price Index
Insch Kintore
1750
1500
5
0
1250
-5
1000
-10
-15
19
750
Performance Summary Relative to Gold Investments
Statistics
Insch
Kintore
2X*
Average Return p.m.
1.64%
Average Return p.a. 21.49%
Cumulative Return 290.70%
AR(1) Std. Dev. p.a. 26.15%
Return/Risk ratio
0.82
Avg. return +ve months
7.05%
Avg. return -ve months -3.67%
SPDR
ETF
Gold
Shares
Gold
Miners
Index
-0.04% -1.01%
-0.44% -11.44%
-3.01% -57.26%
15.81% 35.35%
-0.03
-0.32
4.58%
7.89%
-3.78% -8.77%
Gain Deviation
7.08%
3.24%
7.77%
Loss Deviation
2.77%
3.02%
5.81%
Largest Drawdown -25.91% -42.91% -78.25%
Kernel VAR (5%) -8.09% -8.70% -17.44%
True Deviation 11.30% 16.84% 27.97%
True Return/Risk Ratio
1.90
-0.03
-0.41
Sortino Ratio
2.24
-0.04
-0.57
Jan
2010
2011
2012
-5.46%
8.70%
Feb
4.51%
1.05%
2013 -1.74%
3.14%
2014 -6.99%
2.81%
2015
9.51% -2.60%
2016 18.48% 27.46%
2017
2.05%
1.19%
Mar
-2.59%
-6.69%
Apr
3.57%
-3.84%
-3.34% 25.34%
4.23% -3.84%
2.07% -1.73%
-9.13% -8.63%
-4.53%
2.18%
May
Monthly Returns
Jun
Jul
Aug
Sep
Oct
Nov
Dec Gold YTD
Kintore YTD
-2.51%
-2.61%
8.36% -0.78%
5.60% 26.65%
-1.18% -0.49%
-2.96%
-4.74%
4.83%
0.05%
1.46%
-0.65%
4.56%
8.19%
-4.79%
0.90% 14.00%
-1.48%
9.57%
-1.36%
6.60%
10.14%
26.96%
-7.74%
6.91%
2.24%
4.93%
-8.58%
1.13%
5.15%
-8.31%
9.63%
4.34%
-2.11%
6.06%
8.23%
6.74% -28.33%
-3.40% -2.19%
-7.76% -10.67%
5.01%
8.03%
7.67%
86.17%
-7.75%
17.35%
39.40%
7.80%
-5.17%
-0.07%
2.29% 41.77% -10.65%
-1.20%
1.84% -3.36%
-0.64% -0.34% 11.49%
1.07% -3.48% -1.75%
3.76%
3.13%
-2.82%
-2.62%
5.55%
1.83%
*Returns are backtested up to Jan 2015 and actual afterwards. Performance is shown before fees.
20
Risk Factors
Insch
Kintore
Sensitivity
to Gold
Price
Is Variable
Since
Inception
Since Feb
2015
Oct - Dec
2016
Insch
GLD US
GDM
Kintore
Equity
Index
Insch Kintore
1.00
-0.01
-0.08
SPDR ETF Gold Shares
-0.01
1.00
0.82
Alpha p.a.
Nyse Arca Gold Miners Index
-0.08
0.82
1.00
Correlation Matrix
21
Insch Kintore 2X
1$
change
in Gold
Price
10$
change
in Gold
Price
0.03%
0.30%
0.01%
0.09%
-0.16%
-1.59%
Gold
Gold Miners
Index
19.62%
18.85%
Beta
-0.02
-0.06
Downside Beta
-1.38
-0.64
Correlations
Insch Kintore 2x
100%
DXY Index
2%
100%
GOLDLNPM Index
-8%
-32% 100%
-11% -16%
35% 100%
DJIA Index
-14% -47%
4%
10% 100%
CAC Index
-18% -27%
-1%
17%
68% 100%
SPX Index
-18% -50%
9%
13%
97%
74% 100%
MSCI World
-19% -62%
14%
21%
92%
80%
96% 100%
FTSEMIB Index
-21% -32%
-5%
14%
55%
85%
59%
69% 100%
DAX Index
-24% -16%
1%
20%
67%
86%
72%
76%
74% 100%
E300 Index
-25% -18%
1%
26%
71%
94%
77%
82%
81%
91% 100%
UKX Index
-24% -41%
20%
30%
74%
78%
78%
83%
65%
69%
81% 100%
FTAS Index
-25% -43%
20%
29%
76%
80%
80%
85%
68%
72%
83%
99% 100%
-29%
-17%
11%
61%
65%
64%
63%
57%
59%
72%
59%
-9%
SG CTA Trend
Subindex
FTAS Index
UKX Index
E300 Index
DAX Index
FTSEMIB Index
MSCI World
SPX Index
CAC Index
DJIA Index
DJCBP Index
DJCBP Index
SG CTA Trend
Subindex
22
GOLDLNPM
Index
Correlations of
Monthly Returns
Jul.2010 -Jun.2017
DXY Index
An excellent hedge for long equities, bonds and gold
Insch Kintore 2x
•
61% 100%
Bootstrapping
•
Asymmetric profits and losses and profit/loss volatility
Insch Kintore Bootstrapping Table
Kintore 2X
Number of
Simulations
Mean
Standard Deviation
75th Percentile
50th Percentile
25th Percentile
10th Percentile
5th Percentile
Minimum
Maximum
1year
HPR
%
3year
HPR
%
5year
HPR
%
1year
Avg Gain
%
1year
Avg Loss
%
1year
Avg Gain
Deviation
%
1year
Avg Loss
Deviation
%
10000
24.9
3.1
26.9
24.9
22.8
21.0
19.9
13.0
37.2
10000
92.7
5.4
96.2
92.6
89.0
85.8
84.1
71.6
115.1
10000
172.1
8.5
177.6
171.9
166.2
161.1
158.3
144.6
207.7
10000
29.4
3.0
31.4
29.4
27.4
25.6
24.6
16.8
40.9
10000
-8.9
1.8
-7.6
-8.8
-10.1
-11.2
-11.9
-15.1
-2.6
10000
23.1
2.1
24.5
23.2
21.7
20.4
19.5
14.2
30.7
10000
5.0
1.0
5.7
5.0
4.3
3.6
3.2
0.1
8.1
Bootstrapping is a resampling technique used to obtain estimates of
summary statistics by drawing randomly with replacement from the set
of realized returns.
23
Traditional Portfolio Enhancement
40.00%
Traditional Portfolio
Stocks
40%
Enhanced Portfolio
(20% Gold Spot)
Enhanced Portfolio
(20% Insch Kintore)
Gold
Spot
20%
Cash
20%
Insch
Kintore
20%
Tradition
al
Portfolio
80%
Tradition
al
Portfolio
80%
Bonds
40%
Traditional Portfolio
Enhanced Portfolio (20% Gold Spot)
Enhanced Portfolio (20% Insch
Kintore)
48.19%
5.71%
39.36%
4.80%
Degradation of:
-8.83%
-0.91%
4.36%
4.94%
-0.58%
Worst Drawdown
-6.48%
-5.57%
0.91%
-3.88%
2.60%
Return/Risk Ratio
130.84%
31.02%
97.09%
23.43%
-33.75%
-7.59%
178.96%
40.19%
48.11%
9.16%
Total Return
Annual Return
Annual Std. Dev. (AR1)
Sharpe Ratio
Cash: US 3M T-bill
Bonds: Dow Jones Corporate Bonds Index
Stocks: S&P500 Index
Monthly Data from Jul.2010 to Jun.2017
24
Improvement of:
88.25%
40.06%
9.34%
3.63%
5.22%
-0.86%
Performance Analysis
•
The probability of large daily gains exceeds by far that of daily losses.
•
The probability of
gains above 5%
after 1 year is >60%
•
The probability of
losses below -5%
after 1 year is <15%
Blue Line:
Probability of gains above 5%
Red Line:
Probability of losses below -5%
Data: Jul.2010 – Mar.2017
25
Insch Kintore Key Points Summary
A sustainable edge:
•
Outperformance relative to other investments: equities, fixed income
and commodities
•
•
•
•
•
•
Non-correlation with downside risk in equity and bond markets
•
Possibility to invest through a fund, through
an actively managed certificate or through
managed accounts
26
Outperformance versus other gold investments: ETFs, equities, funds
Low correlation to peers, hedge funds and CTAs
Active monitoring & risk management (trailing stops)
Real time “risk to stop” monitoring and correlation analysis
Specialist highly liquid systematic quantitative
strategy, with low transaction/slippage costs
and an attractive asset class
Key Terms – Managed Account
•
Investment Manager:
Insch Capital Management SA
Via Luvini 4
6900 Lugano
Switzerland
•
•
•
•
•
•
•
NAV Currency:
USD/EUR/CHF
Jurisdiction:
Switzerland
Minimum Subscription:
USD 250,000 for managed accounts
Liquidity:
Daily, no lockup
Initial Subscription Fee:
0%
Redemption Fee:
0%
Negotiable Management/Performance Fees:
• 2% - 20% (high water mark)
• 0% - 25% (high water mark)
27
Key Terms - Actively Managed Certificates linked to
Insch Kintore (Bidirectional Gold) Strategy
On 1st of July 2016, UniCredit AG, Munich issued and launched the strategy as
an AMC
Advantages of the AMC wrapper:
28
•
•
•
Continuous pricing
•
•
•
•
•
•
•
Daily liquidity
Cost-efficiency
Full transparency: portfolio positions
published and available daily
Dealing Codes:
ISIN:
WKN:
Bloomberg:
Valor:
DE000HVB15X4
HVB15X
HVAIKINT Index
26647941
Investment via an ISIN – Cleared through Clearstream
Listing on the Frankfurt Stock Exchange
Independent valuation by the Issuer (UniCredit AG)
“Soft” 65% stop-loss from “all-time high”
Strict control of exposure limits by the Issuer
No “equalization” means that new investors have a “free ride” in terms of
performance fees if they invest at anything other than a new NAV high
Actively Managed Certificates linked to Insch Kintore
(Gold Income) Strategy
UniCredit AG, Munich will launched the strategy as an AMC
ISIN:
DE000HU89R51
Advantages of the Gold Income AMC:
• The standard deviation is about 25% lower than that of Insch Kintore.
• There are no losses unless the AMC is redeemed on a day on which NAV
is below par.
• There are no drawdowns to be recorded, except (possibly) on the
investor selected redemption day.
Insch Kintore Gold Income
DJ EW US Corporate Gold Income Index
2500
2000
1500
1000
500
Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16
29
The Economic Advantage:
Insch Kintore AMC Investors vs. Hedge Fund Investors
•
Investors who enter an AMC below the high water mark are not
subject to performance fees until the entire AMC is in profit. In
other words, they get a “free ride” in terms of performance fees if
they enter at anything other than a new NAV high.
Strategy Value
Drawdown
Earn Back
Needed By
AMC @ 0%
Performance
Fee
Earn Back
Needed By HF
@ 20%
Performance
Fee
80%
80%
60%
60%
AMC Earn Back
Advantage
Drawdown
1000.0
0.00%
0.00%
0.00%
950.0 (-5%)
5.26%
6.58%
1.32%
900.0 (-10%)
11.11%
13.89%
2.78%
850.0 (-15%)
17.65%
22.06%
4.41%
800.0 (-20%)
25.00%
31.25%
6.25%
700.0 (-30%)
42.86%
53.57%
10.71%
650.0 (-35%)
53.85%
67.31%
13.46%
30
40%
40%
20%
20%
Needed
0%
Earn Back
By HF
1
2
3
4
5
6
7
Earn
0%
Back
Needed By AMC
-20%
-20%
-40%
-40%
Investment Structure Matrix
31
PRODUCT
WRAPPER
Managed
Account
AMC
Total
Return
Swap
Collateralized AMC
(C-AMC)
Special
Purpose
Vehicle
ISIN
No
Yes
No
Yes
Yes
MIN. AMOUNT
250’000
100’000
5’000’000
10’000’000
30’000’000
FEES
2-20
2-20
2-20
2-20
2-20
LEAD TIME
Ready
Ready
1 month
2 months
2 months
FEATURES
24 hour,
money in
Client’s name
Fund-like
structure with
ISIN
Efficient cost
structure,
daily
collateralized
(cash)
Daily
collateral into
safe custody
account with
3rd party
trustee
Off-balance
sheet
solution, SPV
holds
Collateral +
TR Swap
Insch Capital Management SA – Organizational Overview
Christopher L. Cruden
CEO
Research & Development
Rivaldi Kwan
Associate Director
Management
David M. Anderson
Non-Executive
Chairman
Legal Counsel
John Oakes
Legal Counsel
Patrick Pellegata
ITEM PARTNERS
Auditor
Yuri Calignano
SOLEFID
32
Compliance
Responsible LRD
Maurizio Cattaneo
Director
Administration
LRD Substitute
Rossana Locher
Director
Background of Team
Christopher Cruden, CEO
Christopher originally attended The Royal Military Academy, Sandhurst and was commissioned into The Gordon Highlanders
in 1975. He has subsequently worked for more than 25 years in finance, spending time with Dean Witter Reynolds Inc.,
before becoming a Director of Adam, Harding and Lueck Asset Management Ltd (AHL) in 1988. After the sale of this firm to
Man International in 1990, he became Head of Managed Futures and Options for Prudential Securities in London and
founded the Derivative Strategy Group within the ASH Group of Prudential Securities in New York.
He became Managing Director of Tamiso & Co. LLC in New York during 1993. He was responsible for currency management
products, research and trading. During this period he substantially enlarged the firm’s foreign exchange activities and codeveloped the Currency Overlay Program. In 1999 Tamiso and Man International established a joint venture based around
the currency trading system of Tamiso.
In its original form, the trading program was JV’d with the MAN Group under Tamiso & Co. LLC in 1999. Christopher
established Insch Capital Management SA in Switzerland during 2004.
David M. Anderson, Non Executive Chairman
In May 2016, David Anderson received the HFR Lifetime Achievement Award for services to the Hedge Fund Industry.
David has had a long and distinguished career in the City of London, and brings to Insch an exceptional and broad
experience of financial and derivatives markets and the Alternative Investment Industry. In the early 1970's he founded one
of the first independent privately owned futures brokers in London, and developed the concept of investment management
in futures and options. He subsequently sold his interest in that company and established, with ED&F Man, the futures
broking, stock broking and investment management company now called Man International, of which he was Chairman.
In 1974, Mr. Anderson launched one of the first futures and options funds in the world. He was responsible for the
development of the alternative investment management business within ED&F Man and also played a leading role in the
development of the structured / guaranteed wrapper for derivative investment products.
He has been closely involved in the development of the futures trading industry in London. He was founder Chairman of the
Association for Futures Investment and is a Member of the Securities Institute. A past Chairman of the formation committee
of the International Petroleum Exchange, he was also vice-chairman of the London Commodity Exchange and a council
member of the Association of Futures Brokers and Dealers, which became the Securities and Futures Association (SFA)
which subsequently amalgamated into the Financial Services Authority (FSA). As a director of the Securities and
Investments Board (SIB) he played a key role in implementing the Financial Services Act 1986.
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Background of Team
John Oakes, Legal Counsel
John Oakes graduated from Oxford University having read Engineering Sciences at Brasenose College
before qualifying as a solicitor with international City law firm Ashursts in 1977. He then joined
CIBC/Wood Gundy as Head of Eurobond & Euro Equity Syndications in 1979. In 1982, he joined JP
Morgan Chase as a Director in their Capital Markets, Structured Finance and Asset Finance Departments
leaving JPM in 1987 to join Wallace Smith Trust Co., a City based international Strategy Consultancy /
Corporate Finance house, as a Director.
Over the last 20 years he has subsequently undertaken corporate finance and strategy consultancy work
for a number of commercial organizations in the UK, Europe, USA and internationally, latterly operating
as a successful corporate “turnaround” specialist within the Private Equity sector.
John has worked with Insch Capital Management SA (“Insch”) on a project-by-project basis since 2007.
His specific concentration has been on the Due Diligence of potential corporate acquisitions and the
financial structuring of commodity based transactions.
Rossana Locher – Administrative Director
Upon joining Insch in 2007, Rossana became responsible for all administrative and back-office functions
in the firm. Her role includes all matters relating to the successful functioning of the firm. Rossana has
primary responsibility for the coordination and management of external service and professional
advisors. In the seven years prior to joining Insch, Rossana worked for a Swiss-based fund sales and
distribution company with over CHF 1 Billion under management. The company employed 10 internal
salesmen and 100 external marketers. Overseeing an administration team of five, she had direct
responsibility for client documentation, investment valuation, employee training, audit and sales-agent
payments. A native of Lugano, Switzerland, Rosanna graduated from the Professional School of
Commerce where she attained a diploma for all aspects of her studies.
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Background of Team
Rivaldi Kwan, MSc - Associate Director
Rivaldi joined Insch in October 2011 as a Research Analyst and was appointed Associate Director in 2013. He is the Sole
Representative of Insch in the UK and is responsible for new business development.
He graduated from the University of Oklahoma where he earned a Bachelor of Science degree in Aerospace Engineering.
He subsequently attended Università della Svizzera Italiana and earned a Master of Science degree in Economics with a
major in Management.
He has full and complete knowledge of Insch Kintillo and spearheaded the addition of EUR/AUD and EUR/CAD in the
Insch Kintillo portfolio in 2012. He also has the responsibility for modelling, backtesting, and monitoring all Insch
strategies and programs. These strategies include BlackGold (Oil) and Goldilocks (Gold). He is responsible for the trade
execution of the trading strategies.
Rivaldi is heavily involved in many other investment areas in which the firm is active such as Commodity Finance and
Equity Derivatives.
Additionally, he is responsible for designing, developing and maintaining all aspects of the Insch websites including the
R2R Interactive Analysis Tool and InschFX front-end interface for Kintillo and Kintore. Rivaldi has over 5 years'
experience of researching, developing and testing Foreign Exchange trading strategies.
35
Disclaimer

Insch Capital Management SA (“Insch”) is a privately owned alternative investment manager and a regulated Swiss Fiduciary
company that holds all the necessary permissions and licenses to act as financial intermediary and to conduct discretionary
investment management services. The firm is also a member of a Swiss regulatory institution for money laundering matters
(“OAD”).

Insch Capital is an appointed representative of Linear Investments Ltd, which is authorised and regulated by the Financial Conduct
Authority. This document is directed only at the classes of investors to whom it may lawfully be directed under applicable laws in
their jurisdiction. Past performance is not an indicator of future performance.

This document is intended for professional clients only and is issued by Insch Capital Management SA, which is authorised and
regulated in the conduct of discretionary investment management in Switzerland. This document has been prepared using
information believed to be accurate at the time of publication.

The value of investments and income derived from them can fall as well as rise and investors may not get back the amount
originally invested. Subscriptions from UK investors will only be accepted when submitted through a regulated financial
intermediary.

The information provided does not constitute advice or a personal recommendation for which the duty of suitability would be owed
by us and you should seek your own advice as to the suitability of any investment matter mentioned here. Professional advisers
should be aware that this document is intended for their use only and this document is not to be shown or given to any retail
investors. Insch will not be liable for the contents of these pages nor for any use thereof or reliance placed thereupon by any
person.

This material is for the exclusive use of the person to whom it has been delivered, is confidential and may not be copied, distributed,
or otherwise given or disclosed to any other person.
INSCH Capital Management SA
Via Luvini 4
CH-6900 Lugano
Switzerland
36
+41 91 921 0168 office
+41 91 921 4078 fax
[email protected]
www.inschinvest.com