PORTFOLIO ADVANTAGES

High Net Worth Investments
Available to the Middle Class

Hedge Funds only allow high net worth investors the availability to invest in such alternative high performing programs. We strive to make alternative high performing investments available to not only the High Net Worth but also the middle class. We aim to build wealth for all.

Massive Liquidity

The 2010 survey shows a substantial rise in activity in traditional foreign exchange markets compared to 2007. Average daily turnover rose to $3.98 trillion in April 2010, an increase of 20% compared to 2007.

Ability to Achieve Profit or Loss in Rising or Declining Markets

Unlike equity and fixed income managers, a Forex Asset Manager employs both long and short positions with equal facility. In Forex trading, there is no difference in profit potential (or loss potential) between a long and short position. Because of this characteristic a Forex portfolio is not ‘biased long’ but able to profit under any market conditions.

Risk Control

Investing in Forex incorporates disciplined risk control procedures in order to limit risk and achieve the smoothest possible growth in its investor account values. Leverage is an acceptable and useful tool when used judiciously and with strict risk management techniques. Investors in currencies are therefore able to achieve a high rate of return with a level of risk control that is not possible with traditional “buy and hold” investments.

Diversification

We have evidence that positive returns can be generated by pursuing a PAMM. What is less widely known is that the introduction of FX in a properly constituted portfolio of other assets can actually reduce the probability and severity of draw downs. This means that many participants in the FX market trade to hedge exposures rather than to generate investment profit.

Greater Leverage

Forex trading provides greater leverage than is found in traditional stock trading, which allows traders to control larger positions with smaller amounts of capital. This also allows you to trade the same size positions you might take with a stock broker, while leaving you with more available capital to trade more markets. Please note that without appropriate use of risk management, a high degree of leverage can lead to large losses as well as gains.

Reduce Portfolio Risk
While Enhancing Returns

When combined with an investor’s existing portfolio of equity and fixed income instruments, the Forex PAMM Program potentially reduces the volatility and risk of that portfolio with the goal of enhancing long-term returns.

Global Diversification

The performance of equity and fixed income investments in one country is often highly correlated with the performance of equity and fixed income investments in other countries. As a result, global portfolios composed solely of equity and fixed income investments lack full diversification, even if they are geographically dispersed. Investing in a Forex managed account gives investors access to markets beyond equity and fixed income investments, providing more complete diversification and a reduction in portfolio risk.

Transparency

A managed account will give clients the ability to monitor their investment account 24/7. All that is needed is a PC and access to the Internet. Each client has a unique login and user name which will give them access to view their account being managed live.

Low Correlation

FX returns have a very low correlation with bond or equity market returns. Between 1980 and 2006, they had a 5% correlation with equities and a minus 21% correlation with bonds. Equities and bonds, meanwhile, had a 26% correlation rate over this period.

No Independent Market Controllers

The stock market is very susceptible to large buys and sells. On the other hand, Forex is the largest, most liquid market. This makes the likelihood of any one fund, bank or company controlling a particular currency extremely slim. The extreme liquidity of the Forex market is reflective of its many large participants from around the world, including banks, hedge funds, brokerages and governments.

24 Hour Trading

The Forex market is a 24 hour exchange. Majority of the participating brokers are open from 5:00pm EST on Sunday until 5:00pm EST on Friday, with customer service usually available 24/6. Traders can participate during the Asian, European and U.S. market hours.