Active Currency Trading Model Product Guide for Individually Managed Discretionary Accounts (MDA) A high growth alternative investment for private and institutional investors wanting exposure to macro trends via currencies in their portfolio.
Table of Contents Introduction 4 Significant Benefits 4 Key Features of Jackson Capital s MDA 5 About Jackson Capital 6 Jackson Capital s Trading Approach 6 Jackson Capital s Performance 8 Jackson Capital Proprietary Trading Products 8 Product Summary 8 Risk and Return - are these strategies right for me? 9 What are the significant risks associated with our investment strategies? 9 Fees and Other Costs 10 How to Contact Jackson Capital 10 How to Invest 10 How to Complete an Application Form 10 Disclaimer: This is not an offer to deal in any financial product. This information might contain unsolicited general information only, without regard to any investor s individual objectives, financial situation or needs. It is not specific advice for any particular investor. Before making any decision about the information provided, you must consider the appropriateness of the information in this document, having regard to your objectives, financial situation and needs and consult your advisor. This may not be passed on to anyone but the addressee. Past performance of financial products is no assurance of future performance. Alpha, its directors, employees and their associates may, from time to time, deal in any financial products mentioned in this document (or derivatives of them), as principal or as agent for clients and may earn brokerage, fees or other benefits for those dealings. Past performance is not indicative of future results. Volatility in the market can change and therefore give differing results than displayed in back testing or live forward testing. Results may exceed or fall short of the month average. All advice is general advice and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment. The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you ve invested. While useful for detecting patterns the past is not a guide to future performance. This publication has been prepared on behalf of and issued by Alpha Equities & Futures Limited (ACN 131 376 415) (AFSL 327075) (referred to as Alpha Broking ). Jackson Capital is an authorized representative of Alpha Equities & Futures Ltd.
The purpose of this document: This document seeks to explain in a clear, concise and effective manner general information about Jackson Capital s individually managed discretionary trading accounts to help you decide if these products meet your needs. This document includes: Information about each product Any significant risks associated with the products Information about the cost of the products An understanding of what to expect from your interactions with Jackson Capital.
Introduction Jackson Capital s currency trading model is suited to traders and investors who: seek growth through exposure to volatility and currencies in their portfolio and who seek an alternative investment that has low correlation to traditional markets such as equities and property. Our proprietary dynamically managed model trades currencies 24 hours a day. They comprise complex algorithms developed using extensive quantitative research, analysis and testing. The investment manager has successfully traded these strategies for managed accounts since 2008; performing well through the high volatility that was so cruel to asset or sector specific investments. We recommend our active currency model as part of the growth component of a broader investment portfolio. Significant Benefits High growth strategy Our models provide the opportunity to earn higher returns (with higher risk). We aim to achieve in excess of 20% net absolute return per annum. Exposure to volatility Investments that can handle volatility are important in today s markets. Our trading models are designed to perform well through market volatility. Exposure to currencies Currencies enjoy high liquidity, low cost and the ability to achieve results in both rising and falling markets. Uncorrelated to standard asset classes A currency based investment that generally has a low correlation to financial market risk factors. Our strategies are designed, developed and managed in-house. The statistical analysis, modeling, coding, testing and the ongoing monitoring and adjustment of the strategies are done in house so nothing is lost in translation across the different modalities. Transparent, flexible and you retain control of your funds. We trade your choice of our proprietary trading models on your individually managed account. You have full transparency without the onerous conditions and fees often associated with a managed fund as well as retaining beneficial ownership of your funds.
Key Features of Jackson Capital s MDA Investment Type Investment Objective Investment Strategy Significant Benefits Managed account trading proprietary currency strategies. To achieve a net return in excess of 20% per annum using proprietary currency related strategies designed to perform well through market volatility. To leverage market volatility trading currency based strategies that generally have a low correlation to traditional financial market risk factors and can achieve growth in both rising and falling markets. Benefits from market volatility Low correlation to financial market risk factors Low correlation to equities and property Diversification from a traditional investment portfolios Opportunity to earn higher returns (with higher risk) in all markets Highly liquid The ability to achieve positive results in both rising and falling markets Trading models designed, developed and managed by the investment manager Constant monitoring of models with continual analysis and adjustment using fundamental analysis overrides where necessary Managed accounts are an effective way to benefit from the knowledge and expertise of an experienced trader without the often onerous restrictions and charges of a managed fund Limited specific risk. This means the risk inherent in specific stocks or markets is limited because our systems focus on highly liquid currencies which have a broad selection of contributing parts making it very hard for one influence alone to move the price excessively. Suggested Investment Timeframe One or more years Minimum Investment $10,000 Custody Application Fee Withdrawal Fee Performance Fee Management Fee Redemptions Reporting Eligible Investors Approved external custodian Nil Nil Nil Nil At call Real time Individuals 18 years old and over, companies, incorporated bodies and trustees (including SMSFs).
About Jackson Capital Jackson Capital design, develop and manage sophisticated currency related trading models that have delivered attractive double-digit annual returns, unaffected by the rise and fall of market volatility. Jackson Capital s individually managed discretionary trading accounts are suitable for private investors, institutional investors, incorporated bodies and trustees; including SMSF s. General Advice Jackson Capital provides general advice only. This means your personal objectives, needs or financial situation were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting upon it. Discretionary Trading You set broad guidelines regarding your trading account and your investment manager uses their discretion to make trades without requiring your prior approval for each trade.
Jackson Capital s Trading Approach Introduction Jackson Capital provides the opportunity to earn high returns trading currency strategies that target market volatility. Our trading models are alternative investments to traditional asset classes such as equities and property that are designed to offer portfolio growth, diversification, or hedging depending on how it is used trading instruments that generally have a low correlation to general financial market risk factors. We trade your account with your choice of our proprietary trading models, freeing you from the hours you would otherwise need to spend watching and analyzing the fast moving currency markets. Objective Jackson Capital aim to achieve a net return in excess of 20% per annum on invested capital using proprietary managed currency strategies designed to perform well through market volatility. There can be no assurances the MDA will achieve its investment objective. Strategy Jackson Capital seeks to meet the investment objective trading specific currencies to target a managed range of volatility, using leverage. Jackson Capital s trading models are proprietary and complex The trading models are designed, developed and managed in-house by the investment management team. The strategies the models use are: Based on mathematical models derived from statistical research Systematic and largely automated, executed by computer algorithms Trade specific currency pairs for their inherent behaviours Take both long and short positions Trades 24 hours a day 5 ½ days per week, ensuring all opportunities are capitalized. We only seek to trade in markets in which we believe we have a statistical edge. Currency markets We favour currencies for their low correlation to traditional assets; their high liquidity; low cost and ability to achieve results in both bull and bear markets. Target market volatility Our investment models profit from volatility in the market. Currencies are inherently volatile with no bias. We use this volatility to our advantage within a certain range and step out of the market for events that may cause volatility to move outside of our system s parameters. Diversified Multiple discrete strategies are employed using different trading logics and currency pairs that are designed to produce the highest level of return at the targeted level of risk. Managed Account Market positions are constantly monitored and manually adjusted, where necessary, to protect capital. We may adjust exposure levels, hedge, or exit positions. Dynamic Trading System The trading system itself is dynamic. Trading strategies, by their nature, need to be constantly updated in order to maintain their competitive edge. For this reason, our models are constantly monitored and modified as new relationships are discovered and incorporated. We target risk over reward to deliver consistent and steady returns We prefer a measured approach in our trading that delivers a more moderate return rather than targeting higher returns that may put capital at greater risk. The main ways we target risk are: Constantly monitor market positions, making manual adjustment where necessary Target a managed range of volatility to prevent trading on certain strategies during periods that exceed model parameters Diversified trading systems Equity stop losses to provide a safety net Quantitative system testing. Derivatives Derivatives are key to the investment strategy in seeking to generate profits. Derivatives are a financial instrument that allows investors to trade without holding the underlying asset. Derivatives offer increased exposure to an asset, which means they provide the opportunity for higher returns (at greater risk) from a lower initial outlay. Leverage Leverage is inherent in currency trading and enables the opportunity for higher returns from a smaller initial outlay. The use of leverage can lead to larger losses as well as larger gains.
Jackson Capital s Performance Jackson Capital s individually managed accounts have achieved annualized net returns of between 20% and 45% per annum*. Because we run individually managed accounts, individual account performance may vary from what is published, based on differences in client instructions and market timing. Our quantitative focus has produced solid results proving its merit as a vehicle able to deliver consistently high returns while riding out the volatility that is so often cruel to asset or sector specific investments. These returns have displayed low correlation with traditional asset classes (such as property and share markets). *Past performance is not indicative of future results. Results may exceed or fall short of the monthly average. Please refer to live performance at http://www. jacksoncapital.com.au Jackson Capital Proprietary Trading Products Jackson Capital have a range of proprietary trading models. Each model trades a portfolio of discrete strategies employing different trading logics and currency pairs to diversify and better manage risk in your trading portfolio. The models are allocated based on the amount of capital invested. Jackson Capital s trading models provide: Consistent attractive absolute returns each month Overall portfolio diversification, when combined with exposure to other asset classes or markets Positive returns in rising or falling markets Freedom from spending hours watching the market Immediate access to your funds View positions in real time. Product Summary 1 STRATEGY OVER VIEW The strategy offers FX trade positions from major banks sell-side research. The featured banks include but are not limited to Goldman Sachs, Crédit Agricole, Bank of America Merrill Lynch, Morgan Stanley, Danske, Crédit Suisse, Citibank, Barclays, BNP Paribas, JP Morgan Chase. The analysis; Trades are taken with view to follow underlying macro trends on a short, medium and long term basis from the top performing banks. Please note we may not take trade due to lack of exposure capability or Jackson Capital disagrees with the decision on a particular trade. Each trade has a set exposure based on the balance of your account. Additionally, stops losses are limited to approximately 1.5% of the account balance. 2 RESEARCH Jackson Capital accumulates the sell-side research of the major banks from around the world. We then analyse, apply our risk protocols and place the trades on behalf of clients. We have accumulated a history of positions taken for each bank and will only trade on the top performing banks. 3 RISK PROTOCOLS Listed below are a set of protocols which Jackson Capital uses to over-ride the trades of the listed banks. 1. Jackson Capital does not engage in trading any pegged currency pairs. 2. We closely monitor fundamentals to determine any risk in a particular pair. If we deem there to be a risk we will abandon the trade. 3. Likewise if we are in a trade and fundamentals change we will seek to modify positions outside the research recommendations. 4 WHAT TO EXPECT Clients can expect to have a limited risk per trade. This means if a drawdown is in progress it is slow and gradual. Please note the past performance is not indicative to future performance. This means even though a bank may have a good record it does not mean it should continue. Clients should review their account if drawdown reaches 25%. Clients should also be aware that their account could go in to drawdown straightaway as our risk reward ratio is high. This means stops usually get hit before targets and a drawdown can be experienced before any closed trade profit. Timing may affect the outcome of an account in the short term if compared to the master account. The system can experience extended periods of draw down or small gains during phases of non-trending markets. It is recommended that client have an investment timeframe of a year or more. Due to the nature of this style of trading it should be expected that a volatile equity curve may be realized.
Risk and Return is this investment strategy right for me? Jackson Capital models trade currencies for their high liquidity, low cost and ability to achieve results in both bull and bear markets. The models use leverage and target a managed range of volatility. This strategy has generated high returns for both short and long term investors in the past. Derivatives can employ significant leverage, which can increase potential losses as well as gains. All Jackson Capital models use 100:1 leverage (of the possible 50:1 700:1 leverage range) We recommend these strategies as part of the growth component of a diversified investment portfolio. We advocate responsible trading and recommend only investing funds that would not affect your standard of living or financial wellbeing. Past performance is not indicative of future performance and you should not base your decision to invest solely upon past performance information. There is no guarantee the systems will generate positive returns or preserve your initial investment and investors must be prepared for the possibility that you could lose up to 50% or more of your account. Things to consider: Your financial goals What are your short, medium and long-term financial goals? Are you looking for opportunities for greater leverage and higher returns? Are you looking to hedge or protect your current share portfolio against adverse market movements? Your investor profile Are you an experienced trader with an understanding of both the risks and opportunities associated with derivatives trading? Your risk profile What levels of investment risk suit you? Are you comfortable with fluctuating investment values or would you prefer the security of a low risk investment? What are the significant risks associated with our investment strategies? The significant investment risks are discussed below and are not exhaustive. We cannot eliminate all risks and cannot promise that the ways we manage them will always be successful. Trading foreign exchange and futures on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts. Operational risk: Algorithmic trading requires high-speed servers and Internet connections to provide execution down to the nanosecond. However, from time-to-time servers can experience delay due to high volumes. This can sometimes affect the outcome of a trade. All operations have a chance of failing. This is why we invest in the best technology, Internet connections and software to avoid any interruptions. However it cannot be guarnteed that latency will not effect a trade outcome. Slippage risk: Slippage occurs when an order is executed at one price and filled at another. This is due to the volume running out before the order can be filled. This can then alter the price in which orders are executed. The high liquidity of the forex market means this is a rare occurrence. Maximum risk (Equity Stop): Each model has a specified stop loss to minimize potential losses on your account. From time to time one system may experience a drawdown while other systems continue to trade unaffected. Our portfolio approach provides diversification across this asset class aiming to smooth the overall performance and provide additional protection in the event of unforeseen market events. Clients should review their account if drawdown reaches 25%
Fees and other costs Jackson Capital intellectual property license fee is by monthly subscription and is based on your account size. Type of fee or cost Management Costs JC00 Managed Discretionary Account Trade Signals Amount AUD $59.00 USD $29.00 How and when paid Monthly payment by credit card via Pay Pal. Monthly payment by credit card via Pay Pal. Type of fee or cost Amount How and when paid Fees when your money moves in or our of your account Establishment fee Nil N/A Contribution fee Nil N/A Withdrawal fee Nil N/A Termination fee Nil N/A Service fees when you switch between investment options Nil N/A Some of the commissions charged by your custodial counterparty are paid to Alpha Broking, Jackson Capital and any referees promoting the Jackson Capital product. When setting up an account you will have full disclosure of the commissions charged and the associated payouts. Who can invest? Individuals 18 years old and over Companies Incorporated bodies (e.g. strata bodies corporate, trade union) Trustees of other entities (e.g. superannuation funds). What you will need to complete your application? Driver s license or Passport number Tax file number Residential & Postal address Bank account details You may be required to send proof of ID. How to invest To invest, there are three steps required. 1. Complete the application form for an executing broking account with Alpha Broking 2. Fund your broking account. The minimum account size is $10,000 3. Subscribe to Jackson Capital trading systems (www. jacksoncapital.com.au). How to complete an application form Complete the application form online for an executing broking account with Alpha Broking (https://alphabroking. eappform.com/initiate.aspx). You will be notified by email if we accept your application. Addresses We have included a space for you to complete your address on the application form. Please note we are also required to collect your residential address. If your mailing address is care of a third party please be aware that all correspondence will be sent to this address. Who should sign? The individual(s) in whose name the investment is held should sign. Joint applicants will be deemed to be holding units in the fund as joint tenants. Company, incorporated association or body corporate applications must be signed by: Two officers (e.g. two directors or a director and secretary) As required by the constitution or rules of the company or body (e.g. under seal witnessed by two officers) Signed by one director for a single director company. Additional documentation may also be required for applications in the name of a company, incorporated association or body. How to contact Jackson Capital 1300 825 742 +61 3 8662 4006 @ invest@jacksoncapital.com.au fax + 61 3 8662 4001 Level 8, 1 Collins St, Melbourne, 3000 www.jacksoncapital.com.au