MONUMENTFX MANAGED FOREX ACCOUNT

Transcription

1 MONUMENTFX MANAGED FOREX ACCOUNT NOVEMBER 2012

2 TABLE OF CONTENTS MonumentFX Summary.. 3 Our Firm Program Introduction. 4 MonumentFX Philosophy Performance History. 6 Consistent Outperformance. 7 Principal Risk Factors 8-9 Market & General Economic Conditions 8 Key Persons Risk.. 8 Volatility Risk.. 8 Electronic Trading 9 Full Transparency & Safety of Funds Ownership of Account. 9 Brokerage Partner Investment Process 11 Access To Funds 11 Account Setup 11 Fees & Expenses Performance Fee. 12 Performance Fee Billing Deposits & Withdrawals Reporting. 13 Account Opening Risk Disclosure

3 MONUMENTFX SUMMARY Minimum Funding Deposit: $15,000 USD for a limited introductory period. Clients maintain full ownership, access, and control of their individually-owned account at all times. MonumentFX maintains trade-only access. Clients may withdraw funds or remove their account from the management service at any time. Monthly Performance Fee: 35% with high watermark policy for standard clients. Reduced Monthly Performance Fee of 25% with minimum funding deposit of $100,000 USD. Client chooses between standard MonumentFX and more aggressive MonumentFX Plus. Maximum Risk to Capital: 20% to 35% customizable to the client. NO automated trading. All trading conducted is via manual discretionary executions. Built-in capital protection via customizable fixed-risk threshold OUR FIRM We are an exclusively private asset management firm administering a variety of successful Managed Forex Programs servicing a global client base. Our firm employs a team of established global currency traders with extensively verifiable histories of producing consistently unparalleled profitability. Our traders maintain specialized experience in managing client capital within the spot foreign currency exchange market ( Forex ). We are an established trade manager with a global client base of private individuals, institutional investors, and asset allocators. Historically, Our firm s trade managers have produced an unrivaled level of risk-adjusted profitability with unmatched consistency. Our trade managers outperform customary and alternative investment vehicles alike (see Performance Records). Our firm s traders have engineered and developed elite proprietary trading methodologies geared toward achieving a variety of investment objectives. The MonumentFX program to which you have been introduced is the flagship product offering of our firm geared toward accommodating the uncorrelated risk-adjusted objectives of our institutional clients and high net worth private individuals. Our firm seeks to produce superior risk-adjusted returns via highly liquid currencies as managed accounts through which our clients maintain full ownership and control. Clients maintain individual fully segregated ownership and control of their trading accounts. Our firm maintains trade-only access through which the program manager will engage upon activity directly on behalf of the client via a 3

4 Master Control Platform utilizing PAMM technology. Our firm values integrity, dedication, and the provision of unprecedented opportunity. We aim to embrace tradition, ambition, pragmatism, and most importantly discipline. It is this set of core values which define our unique business culture and distinguish our firm as a preeminent Managed Forex Provider. PROGRAM INTRODUCTION The MonumentFX Managed Forex Program offered by our firm aims toward providing outstanding performance in consistent fashion while minimizing the risk and volatility prevalent in other Forex programs to professionally acceptable standards. Given the evolving state of the global economic condition in combination with customary financial investments, seeking uncorrelated risk-adjusted returns in the currency markets have become a viably pertinent aspect of a well-diversified investment portfolio. The MonumentFX program satisfies the necessity for diligent investors to benefit from the opportunities prevalent in the participating in the Forex market. Consistent capital appreciation is the paramount objective of the MonumentFX program. The underlying methodology employed within the MonumentFX program aims to achieve profitability regardless of the underlying market environment, including whether a particular currency pair is rising or falling. MonumentFX is designed to exploit short term trend-based price movements regardless of direction with uncorrelated nature to stocks, bonds, and commodities. All trading activity conducted by the trade manager is discretionary manual trading. Our firm has implemented within its MonumentFX program sophisticated use of an elite proprietary methodology engaging upon a short-term trend following strategy. The MonumentFX program is continually engaging upon the necessary level of perpetual market research and development in order to continually maintain a perpetual state of relevance with respect to the dynamic nature of market behavior. This includes continuous evaluation of respectively traded currency pairs in combination with ongoing evaluation of prospective tradable pairs. The MonumentFX trade manager executes high probability trades during specifically isolated periods of time during which customary price action has been carefully identified as most conducive to the underlying methodology. The particular trading philosophy, in combination with our proprietary tools, forms the foundation of that which our firm utilizes on behalf of clients in order to generate unrivaled profits within the Forex market through all market cycles in risk-adjusted fashion. 4

5 MONUMENTFX PHILOSOPHY Our firm recognizes the fact that consistent risk-adjusted returns can be generated successfully within the Forex market through application of sophisticated trading methodologies which generates performance levels unmatched by other investment vehicles available to investors, customary and alternative alike. We have developed strong insight into the fact that the Forex market is an extremely liquid, costefficient and well developed asset class which adheres to vary particular price action conducive to achieving outsized profit targets while subsequently minimizing risk exposure. It is through intimate knowledge of the nature of the world s largest financial market which allows our trade managers to employ use of specialized, insight-driven trading systems in order to achieve our aims. The MonumentFX program to which you have been introduced achieves these goals through a persistently disciplined trading approach which effectively minimizes market exposure and risk while extrapolating bottom line returns. 5

6 PERFORMANCE HISTORY MONUMENTFX MANAGED ACCOUNT PROGRAM PERFORMANCE RESULTS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC CPD % 5.15% 5.47% 5.09% 7.06% 5.07% 6.23% 4.56% 6.10% 7.55% 67.84% % (0.91%) 5.99% 1.41% 10.27% 4.71% 5.38% 8.81% 5.80% 6.16% 3.69% 3.20% 83.42% % 5.93% 0.64% 5.50% 3.06% 0.73% 5.80% (6.74%) 9.46% 3.06% 9.30% 3.67% 60.38% % 0.51% 1.9% (0.3%) 4.5% 3.0% 1.7% 1.1% 1.8% 1.5% 21.77% 44-Month Compound Return: % * Future trading results will be updated on a monthly basis. CPD = Compound annual return PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. PERFORMANCE FIGURES INDICATE GROSS MONTHLY RETURN PRIOR TO DEDUCTION OF 35% MONTHLY PERFORMANCE FEE MONUMENTFX PLUS MANAGED ACCOUNT PROGRAM PERFORMANCE RESULTS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC CPD % 10.30% 10.94% 10.18% 14.12% 10.14% 12.46% 9.12% 12.20% 15.10% % % (1.82%) 11.98% 2.82% 20.54% 9.42% 10.76% 17.62% 11.60% 12.32% 7.38% 6.40% % % 11.86% 1.28% 11.00% 6.12% 1.46% 11.60% (13.48%) 18.92% 6.12% 18.60% 7.34% % % 1.02% 3.8% (0.6%) 9.0% 5.9% 3.5% 2.2% 3.5% 2.9% 47.11% 44-Month Compound Return: +3,128.93% * Future trading results will be updated on a monthly basis. CPD = Compound annual return PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. PERFORMANCE FIGURES INDICATE GROSS MONTHLY RETURN PRIOR TO DEDUCTION OF 35% MONTHLY PERFORMANCE FEE 6

7 CONSISTENT OUTPERFORMANCE Illustrated below is a side-by-side comparison of the MonumentFX Managed Forex Program certified account performance versus the S&P 500 and BarclayHedge CTA Index during the past 24-months using an initial investment benchmark of $15,000 USD. It should be of significant note that the MonumentFX performance exemplifies the exponential power of compound interest in combination with achievement of consistent monthly and annualized returns during the investment period. 7

8 PRINCIPAL RISK FACTORS Managed Forex Accounts are speculative in nature and, because of the leverage utilized, risk of loss is substantial. Each potential investor should consider whether a MonumentFX Managed Forex Account is a suitable investment before deciding whether to apply. A Managed Forex Account should not represent a large proportion of an investor s available investment funds. Major risk factors may have a significant impact on the performance of a Managed Forex Account including, but not limited to the following: MARKET & GENERAL ECONOMIC CONDITIONS Including, but not limited to: - Movement in global interest rates and commodity prices; - Extreme movements in any currency pair; - Significant changes in worldwide economic conditions; - Sentiment in domestic and international shares; - Global tensions; political concerns, wars, terrorist acts, acts of God, etc. and - Other factors which cannot be foreseen. KEY PERSONS RISK The operating results of a Managed Forex Account will depend on the trading and analysis of the MonumentFX trade manager. Should the trade manager become physically unable to oversee trading within client accounts a temporary interruption of service may occur. VOLATILITY RISK Currency prices are highly volatile. Price movements for currencies are influenced by, among other things: changing supply-demand relationships; trade, fiscal, monetary, exchange control programs and policies of governments; United States and foreign political and economic events and policies; changes in national and international interest rates and inflation; currency devaluation; and sentiment of the market place. Further, in Forex markets specifically, fiscal, monetary, and exchange control programs and policies of governments play a large role in the fluctuation of currency prices. In addition, governments may from time to time intervene, directly and by regulation, in certain markets, particularly in the currency market. Such intervention is often intended to influence prices directly. 8

9 ELECTRONIC TRADING The Trade Manager will place trades on the electronic trading platform offered by the specified brokerage partner. In the event that there is a failure or disruption of this platform, it is possible that, for a certain time period, the Manager may not be able to enter new orders, execute existing orders, or modify or cancel orders that were previously entered. In addition, a system failure may also result in loss of orders or order priority. FULL TRANSPARENCY & SAFETY OF FUNDS Our clients maintain full ownership and control over their accounts. All client accounts are individually owned and segregated. As a result, clients retain real-time access and monitoring 24 hours a day. Furthermore, clients may withdraw their funds at any time or disable their trading account from the Master Control Platform at their own discretion. We place a high degree of importance upon providing its investors with security of funds, full account transparency, and continuous access to their capital. Investors maintain the ability to monitor their trading accounts in real-time which entails viewing of all currently open positions, account balance and equity statistics, as well as the entirety of their completed trading history. OWNERSHIP OF ACCOUNT Clients who invest capital within a MonumentFX Managed Forex Account enjoy a customary level of transparency, ownership, and control over their funds. The investor maintains full individual ownership and control of funds within their account. Furthermore, the client maintains log-in access in order to monitor and evaluate their trading account performance in real-time. The Trade Manager maintains what is referred to as trade-only access to client accounts in overseeing the management of trading activity. BROKERAGE PARTNER We recognize that brokerage selection and security of client funds is of paramount importance. Therefore, the firm has engaged upon an extensively dedicated level of diligent evaluation in identifying and establishing partnership with a fully regulated brokerage partner providing a superior level of client services and a professionally efficient market environment. As a result of this committed effort in providing the most favorably secure brokerage environment on behalf of our clients, all accounts are held with, FinFX our select partner firm. 9

10 FinFX is a global online provider of foreign exchange (Forex) trading and related services to retail and institutional customers world-wide. FinFX maintains a high standard of compliance and quality throughout its organization. As an established ECN broker, FinFX is required to meet strict financial standards, including capital adequacy requirements. As such, FinFX has been rated AAA Highest Creditworthiness by Soliditet. Only limited liability companies can hold the AAA (triple A) rating. Furthermore, the company must have been trading for at least ten years, have a turnover exceeding SEK 2 million, and be able to show financial ratios well in excess of the industry average. FinFX is a specializing in offering Forex brokerage services to its clients. FinFX uses STP-model and provides its customers with real-time market and price feeds from prime banks as well as the awardwinning MetaTrader 4 platform. FinFX also provides the MetaTrader 4 Mobile application, which enables traders to follow the market and benefit from their ios and Android-based devices that include iphone, ipad, ipod touch as well as Android-phones and Android tablets. The MonumentFX Managed Forex program clears all trades through FinFX. Clients deposit funds directly into their individually owned account with the brokerage firm. Our firm does not directly accept investment funds. The MonumentFX manager has no access to investor capital as the firm is merely authorized to engage upon trade management within investor accounts on their behalf. All performance fees are automatically deducted from client accounts by the brokerage firm on a monthly basis as appropriate. Our top priority is the safety of customer funds: therefore FinFX is audited by PricewaterhouseCoopers (PwC). 10

11 INVESTMENT PROCESS Client opens an individually owned trading account directly with the fully regulated broker. Client funds their newly established trading account. Client authorizes Trade Manager to oversee their account. Client account is synchronized to the MonumentFX Master Control Platform. MonumentFX Program will initiate trading activity on behalf of client. Client maintains full ownership and control of their trading account. Client may withdraw funds at any time. Client may access full suite of account tracking tools to monitor their account. ACCESS TO FUNDS The MonumentFX Managed Forex Program provides clients with fully liquid access to their funds at all times. Therefore, and unlike most investment funds, clients may withdraw all or part of their investment at any time without penalty. ACCOUNT SETUP Individually-owned & segregated client trading accounts are synchronized to the MonumentFX Managed Forex Master Platform. The Trade Manager executes trades via the master platform. These trade orders are automatically disseminated to individual client accounts via a percent allocation module. 11

12 FEES & EXPENSES PERFORMANCE FEE The MonumentFX Managed Forex Program charges each account a monthly performance fee equal to 35% of the Net Profits generated within each client account for the respective month using a net high water-mark policy. However, our firm also offers a reduced Monthly Performance Fee of 25% for those clients initiating a minimum funding deposit of $100,000 USD or greater. Net Profits shall mean the aggregate net trading profit, both realized and unrealized in a managed account during such calendar month, minus brokerage fees and other managed account transaction costs and expenses, and plus or minus the change from the previous month-end in the balance of brokerage commissions necessary to liquidate positions. The existence of a Carry Forward Loss is determined by adding all the Net Losses that have been sustained since the last month-end at which a Monthly Performance Fee was paid and subtracting them from Net Profits for the same time period. The use of a Carry Forward Loss insures that Monthly Performance Fees are paid only on the cumulative increases in the Net Profit of a managed account. The Monthly Performance Fee will not be charged until there are Net Profits. However, Monthly Performance Fees shall not be rebated by virtue of subsequent losses. If a participating client withdraws from the Managed Forex Account Program, the client shall be billed for the Monthly Performance Fee if the managed account has earned a Net Profit in the month of such a withdrawal. If the Managed Forex Account has incurred a loss in the month of withdrawal the client will not be charged a Monthly Performance Fee. The result of the above calculated Net Profit may result in a negative number or Net Loss. Net Profits are based on the profits generated above the high watermark, which is the balance of the account above the previous profitable balance. PERFORMANCE FEE BILLING The brokerage firm will automatically bill all Performance Fees to each managed account. All fees paid will be retained by our firm, even if the managed account subsequently experiences losses. Since the Monthly Performance Fee is payable monthly, substantial Monthly Performance Fees may be paid to the 12

13 trade manager during a fiscal year even though the managed account sustains a net trading loss in the fiscal year. The Monthly Performance Fee will not be paid until the account is above its original value. The breakeven point which dictates every subsequent high water mark level equates to the original amount deposited in the account minus the Monthly Performance Fee being paid. DEPOSITS & WITHDRAWALS Investors may initiate deposits into their Managed Forex Account at any time. All trading efforts will immediately take consideration of newly added funds. Withdrawal requests may also be initiated at any time. MonumentFX requests they be alerted to intended fund withdrawals. All withdrawals are subject to counterparty account closure fees. REPORTING The trade manager and the brokerage partner have continuous monitoring capabilities and the broker will report to each client Net Asset Value on a daily & monthly basis. On-going statements of performance are available in real-time to each client via a login and password directly provided to them by the brokerage firm. ACCOUNT OPENING Contact our firm with respect to your interest in benefiting from our private managed account service. We will respond within 48 hours in order to discuss with you any outstanding questions you may have as well as your current investment objectives. You will be provided the appropriate application documents necessary in establishing your new managed account. Upon having completed and submitted your new account application, your account will be promptly processed. You will receive a unique Account # and funding instructions directly from the brokerage upon approval of your new account. Your trading account will be synchronized to the Master Control Platform pursuant to the diagram on Pg. 12 and trade management activity will immediately commence on your behalf. You will maintain the ability to monitor and access your trading account in real-time. 13

14 Risk Disclosure Statement THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IN CONSIDERING WHETHER TO TADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU, YOU SHOULD BE AWARE OF THE FOLLOWING: IF YOU PURCHASE A COMMODITY OPTION YOU MAY SUSTAIN A TOTAL LOSS OF THE PREMIUM AND OF ALL TRANSACTION COSTS. IF YOU PURCHASE OR SELL A COMMODITY FUTURES CONTRACT OR SELL A COMMODITY FUTURES CONTRACT OR SELL A COMMODITY OPTION OR ENGAGE IN OFF-EXCHANGE FOREIGN CURRENCY TRADING YOU MAY SUSTAIN A TOTAL LOSS OF THE INITIAL MARGIN FUNDS OR SECURITY DEPOSIT AND ANY ADDITIONAL FUNDS THAT YOU DEPOSIT WITH YOUR BROKER TO ESTABLISH OR MAINTAIN YOUR POSITION. IF THE MARKET MOVES AGAINST YOUR POSITION, YOU MAY BE CALLED UPON BY YOUR BROKER TO DEPOSIT A SUBSTANTIAL AMOUNT OF ADDITIONAL MARGIN FUNDS, ON SHORT NOTICE, IN ORDER TO MAINTAIN YOUR POSITION. IF YOU DO NOT PROVIDE THE REQUESTED FUNDS WITHIN THE PRESCRIBED TIME, YOUR POSITION MAY BE LIQUIDATED AT A LOSS, AND YOU WILL BE LIABLE FOR ANY RESULTING DEFICIT IN YOUR ACCOUNT. UNDER CERTAIN MARKET CONDITIONS, YOU MAY FIND IT DIFFICULT OR IMPOSSIBLE TO LIQUIDATE A POSITION. THIS CAN OCCUR, FOR EXAMPLE, WHEN THE MARKET MAKES A LIMIT MOVE. THE PLACEMENT OF CONTINGENT ORDERS BY YOU OR YOUR TRADING ADVISOR, SUCH AS A STOP- LOSS OR STOP-LIMIT ORDER, WILL NOT NECESSARILY LIMIT YOUR LOSSES TO THE INTENDED AMOUNTS, SINCE MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS. A SPREAD POSITION MAY NOT BE LESS RISKY THAN A SIMPLE LONG OR SHORT POSITION. THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY INTEREST TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS. IN SOME CASES, MANAGED COMMODITY ACCOUNTS ARE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT AND ADVISORY FEES. IT MAY BE NECESSARY FOR THOSE ACCOUNTS THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. THIS DOCUMENT CONTAINS A COMPLETED 14

15 DESCRIPTION OF EACH FEE TO BE CHARGED TO YOUR ACCOUNT BY THE TRADING ADVISOR. THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER SIGNIFICANT ASPECTS OF THE COMMODITY INTEREST MARKETS. YOU SHOULD THEREFORE CAREFULLY STUDY THIS DISCLOSURE DOCUMENT AND COMMODITY INTEREST TRADING BEFORE YOU TRADE, INCLUDING THE DESCRIPTION OF THE PRINCIPAL RISK FACTORS OF THIS INVESTMENT, ON PAGES 9-10 YOU SHOULD ALSO BE AWARE THAT THIS COMMODITY TRADING ADVISOR MAY ENGAGE IN OFF- EXCHANGE FOREIGN CURRENCY TRADING. SUCH TRADING IS NOT CONDUCTED IN THE INTERBANK MARKET. THE FUNDS DEPOSITED WITH A COUNTERPARTY FOR SUCH TRANSACTIONS WILL NOT RECEIVE THE SAME PROTECTIONS AS FUNDS USED TO MARGIN OR GUARANTEE EXCHANGE-TRADED FUTURES AND OPTION CONTRACTS. IF THE COUNTERPARTY BECOMES INSOLVENT AND YOU HAVE A CLAIM FOR AMOUNTS DEPOSITED OR PROFITS EARNED ON TRANSACTIONS WITH THE COUNTERPARTY, YOUR CLAIM MAY NOT BE TREATED AS A COMMODITY CUSTOMER CLAIM FOR PURPOSES OF SUBCHAPTER IV OF CHAPTER 7 OF THE BANKRUPTCY CODE AND REGULATIONS THEREUNDER. YOU MAY BE A GENERAL CREDITOR AND YOUR CLAIM MAY BE PAID, ALONG WITH THE CLAIMS OF OTHER GENERAL CREDITORS, FROM ANY MONIES STILL AVAILABLE AFTER PRIORITY CLAIMS ARE PAID. EVEN FUNDS THAT THE COUNTERPARTY KEEPS SEPARATE FROM ITS OWN FUNDS MAY NOT BE SAFE FROM THE CLAIMS OF PRIORITY AND OTHER GENERAL CREDITORS. FURTHER, YOU SHOULD CAREFULLY REVIEW THE INFORMATION CONTAINED IN THE RISK DISCLOSURE STATEMENT OF THE FUTURES COMMISSION MERCHANT OR RETAIL FOREIGN EXCHANGE DEALER THAT YOU SELECT TO CARRY YOUR ACCOUNT. THIS COMMODITY TRADING ADVISOR IS PROHIBITED BY LAW FROM ACCEPTING FUNDS IN THE TRADING ADVISOR S NAME FROM A CLIENT FOR TRADING COMMODITY INTERESTS. YOU MUST PLACE ALL FUNDS FOR TRADING IN THIS TRADING PROGRAM DIRECTLY WITH A FUTURES COMMISSION MERCHANT OR RETAIL FOREIGN EXCHANGE DEALER, AS APPLICABLE. 15