We believe this is the direction that the entire fund management industry will have to move towards in order to adapt to investor demand. Simply put, our duty as an asset manager is to share not just the rewards, but also the risks with our clients.
Global (PRWEB UK) 23 April 2012
The investment community strongly agrees that precious metals (bullion) have ended their decade-long rallies as gold and silver failed to breach the 2,000 and 50 US Dollar marks respectively. Therefore, it is now more crucial than ever to manage risk and find profit-making opportunities in the precious metal markets through active market participation.
For centuries, investors have diversified their investment portfolios with holdings in physical gold and silver, providing them with protection from:
- Inflation Risk
- Currency Risk
- Credit and Default Risk
However, the challenge that most precious metal investors are facing nowadays is increasing volatility in the markets with little to no observable long-term trends. It has become increasingly difficult for “buy-and-hold” investors to protect their assets through ownership of precious metals with the current climate in the global markets.
Active Portfolio Management
Although bullion markets have become increasingly unpredictable, there are investment solutions that take advantage of this uncertainty.
PriceBullion, the bullion trading arm of Price Capital Markets AG, a Swiss regulated asset manager, launched the first ever Managed Bullion Account Program 12 months ago and are now celebrating the first year of trading through their pioneering investment service.
By pro-actively purchasing and selling physical metals 24 hours a day, 6 days a week, PriceBullion has managed to generate a healthy 48.19% return on investment over the last 12 months, out-performing the gold price itself which has gained a mere 22% during the same period.
With the use of proprietary trading models and algorithmic trading software, also known as “robots” or “black-box models”, PriceBullion has managed to spot profitable opportunities in the gold and silver markets. The robots attempt to profit from increasing bullion prices by accumulating gold and silver while using strategies to protect client holdings and sell-out metals when the markets are in short or medium-term down-trends. This model has generated a smooth return, uncorrelated to gold, silver or global market sentiment.
Charging Fees Only When Making Profits for Clients
An integral feature of the Managed Bullion Account Program is the absence of fixed fees. The investment managers' only income is the generation of a “Performance Fee”, which is a small portion of the profits generated by the manager on behalf of the investors. In the absence of new profits, the investment managers will have to work without any income until they generate new profits for their clients.
“We believe this is the direction that the entire fund management industry will have to move towards in order to adapt to investor demand. Simply put, our duty as an asset manager is to share not just the rewards, but also the risks with our clients.” says Uchenna Oranu, Chief Market Analyst at Price Capital Markets AG.
Compared to traditional investment vehicles, such as funds and ETF's, the Managed Bullion Account Program provide investors with:
- Safety of Assets – Precious metals and client money are held segregated and traded in clients' name on clients' own account with a third-party broker or bank.
- Complete Transparency – Investors can login and view their account holdings, real-time trades and more - 24/7 from a platform login on a computer, iPhone, iPad, Android tablet or BlackBerry.
- Instant Liquidity – Investors can withdraw all or a portion of their investments at anytime, 5 days a week - without incurring any penalties or redemption fees.
- Competitive Terms - No fixed fees, capital lock-up or tie-in of money.
- Fully Managed Service - Professional traders monitoring investments around the clock, every trading day.
- Direct Market Access - Access to the professional inter-bank bullion markets without the ordinarily high minimum required investment.
- Accessible Investment - Low account minimums from 5,000 USD.
PriceBullion.com is the physical bullion trading division of Price Capital Markets AG, a regulated asset manager based in Switzerland. Through the use of innovative methods and market experience, Price Capital Markets AG provide investors from all walks of life access to tailored investment solutions, a world previously only available to financial institutions and High Net Worth Investors.