Investment Capital Advisors L.L.C. ICA Due Diligence Questionnaire March Contents

Transcription

1 Contents General Information... 1 Company Profile and Main Activity... 1 Key Personnel... 2 Investment Professionals in the firm; years of experience, and their duties... 2 Outsourced Professional Services... 2 Investment Program... 4 Investment Managers, Addresses, and Regulators... 4 Investment Program... 4 Account Opening Procedure... 5 Trading Strategy... 6 Description of the Investment Strategy... 6 Trading System... 6 Strategy Strengths... 7 Strategy Weaknesses... 7 Risk and Trade Management... 8 Types of risks measured... 8 Risk Management Applications... 9 Stress Testing... 9 Trading Parameters Risk Management Model and Style Live Performance and Reporting Performance Recording Performance Statistics (Return%, SD, Sharp Ratio, Leverage, DD) MPT Statistics (Alfa, Beta, R2, Corr. SD, Volatility) Compounded performance curve against Benchmarks Leverage analysis / all trades Trade Distribution / Pairs Profit/Loss % Distribution / pairs Performance during crisis... 18

2 General Information 1) Company Name Investment Capital Advisors LLC 2) Foundation Date 27/01/2009 3) Address Lebanon Office: George Al Kareh Bldg., Mar Mikhael Street Blvd. Baabda, Lebanon. P.O. BOX: Baabda, Lebanon Switzerland Office: Schützengasse Zürich 4) Telephone, Fax, , Website, Skype Tel Tel: E.admin@icatrading.com, W. 5) Number of employees 5 employees, in addition to a lawyer and an accountant Skype: mzgharib 6) Emergency contact (name of person, mobile, skype, ) Mohamad Gharib, T: , E. mgharib@icatrading.com 7) Company Profile and Main Activity Investment Capital Advisors LLC is built by a group of traders, financial analysts, and programmers. ICA is registered at the commercial register in Baabda, under No , and at Lebanese Republic Ministry of Finance under No ICA is presented in Switzerland by Bellevue Capital GmbH, Bellevue Capital is our Investment Manager company which registered at the commercial register in Zurich, under No. CHE Bellevue Capital GmbH is regulated by PolyReg which is under FINMA supervision. Investment Capital Advisors LLC has three departments: a. Economical Laboratory Department: is an experimental economical laboratory which aims to develop ideal trading systems and risk management models; by conducting researches and experimental methodologies which is concerned with the transfer of experimental results to the design of ideal Trading Strategy. The Laboratory has developed Trading System, Market and Operational Risk Management Models, and Stress Testing Model with their applications. b. Trading Department: is a team of Traders, Analysts, Risk Managers, whose aim is to execute the ICA Trading Strategy, the Trading Department works in conjunction with outsourced asset management companies, who act as external chief investment officers. c. Risk Management Department: We give the risk managers the authority to make decisions, full control of trading operations, and a superior power over portfolio management than the traders and managers themselves. Our risk managers have responsibility for identifying all risk aspects, ensuring that the required practices and systems are in place to identify, monitor and manage risk. 1

3 Key Personnel 8) Investment Professionals in the firm; years of experience, and their duties 9) Auditor of the company Mohamad Gharib, CTO. As a Chief Trading Officer, Mohamad s duties are to execute the Trading Strategy; by making sure that the mechanical trading system and the automated risk management models are executed properly. Mohamad is also the head of the ICA Economical Laboratory, and the developer of the ICA trading system, Market and Operational Risk Management Models, in addition to the Stress Testing Methodology. Mohamad has 12 years of experience in trading and portfolio management. Mohamad holds a Bachelor degree in Banking and Finance along with accredited certifications and international designations. Sebastian Seiler, MD. As a Mananging Director, Sebastian s duties are to formulate short and long term investment policies, and construct individually customized portfolios based on client criteria: tolerance for risk, investment time horizon, target rate of return, and liquidity. Sebastian holds a Master degree in Financial Planning CFP (Certfified Financial Planner) Naoya Kubota, MD. As a Mananging Director, Naoya s duties are to develop and maintain an effective marketing and public relations strategy to promote the products, services and image of the company in the wider cummunicty, Naoya is also representing the company in negotiations with customers and other key contacts to secure the most effective contract terms for the company. Abed El Aziz Wahidi, CMA. As a Chief Market Analyst, Abed s duties are to study the market charts identifying the existing of our tradable pattern. Abed is also responsible for determining the trigger and price projection of each trade. Abed has 7 years of experience in trading and analysis. Abed holds a Bachelor degree in civil engineering. Hussein Al-Moussawi, CRO. As a Chief Risk Officer, Hussein s duties are to identify, monitor, and measure the risk of the portfolio. Hussein is also responsible for executing the automated risk and trade management software which controls trades' risk and leverage; it also sets the optimal stop loss with the allowed leverage automatically. Hussein holds a Master Degree in computer sciences. Hassan Daoud, IT. As an IT Hasan s duties are to develop, enhance, modify and maintain ICA applications as well as individual components in a heterogeneous technology environment using knowledge of object-oriented programming and programming languages. Hasan holds a TS degree in Management Information System (MIS). Mona Omeiry, CCO. As a Chief Compliance Officer, Mona s duties are to oversee and manage compliance issues; to ensure that the company is complying with regulatory requirements as well as to ensure that the company s internal policies and procedures are being followed. Mona holds a law license, and is a member of bar association Delta Group is a Sworn Auditor at the Lebanese Juridical Courts, and a member of the Lebanese Association of Certified Public Accountants. Delta Group acts as an external auditor of Investment Capital Advisors LLC. 10) Outsourced Professional Services 2

4 Investment Capital Advisors LLC has built strong relationships with Swiss Regulated Asset Managers who share the responsibility on investment process with ICA. Our Asset Managers Partners acts as an outsourced chief investment officers; their role includes: a. Integrated Monitoring and Advising Oversee and advise multidisciplinary and multifunctional team of professionals who are responsible on designing, developing and managing investment strategy, to create superior investment return for clients. b. Customized Portfolio Solution Formulate short and long term investment policies, and construct individually customized portfolios based on client criteria: tolerance for risk, investment time horizon, target rate of return, and liquidity. c. Ongoing Relationship Develop and maintain ongoing professional relationships between investors and money manager, this is accomplished by staying in consistent contact with the investors and money managers, to make sure that investors are never surprised by anything in their portfolios. d. Money Manager Due Diligence Due diligence is processed by conducting qualitative and quantitative analyses of money manager, which may include: manager interviews, documentation reviews, evaluating the methodology, adherence to stated methodology, past performance, performance among peers, and performance relative to assumed risk such as the Sharpe ratio, Alpha, Beta, and Standard Deviation. e. Performance Reporting and Analysis Provide customized performance reports to our clients on a monthly basis, and measuring the performance on a risk-adjusted basis along with the general theoretical underpinnings of Modern Portfolio Theory. 3

5 Investment Program 11) Investment Managers, Addresses, and Regulators ICA Trading Strategy is offered to Investors by the following regulated asset management companies: Investment Manager Address Regulator Bellevue Capital GmbH Schützengasse Zürich Switzerland Tel ) Banks / Prime Broker Swiss Quote Bank SA (Switzerland, Dubai) CFH (UK) Aura FX (NZ) 13) Program Name, and Type ICA Managed Account Program 14) AUM 12 Million US Dollar 15) Trading Markets Investing 80% in FX Market, and 20% in Commodity Market (Oil, Gold) 16) Account Ownership PolyReg Allgemeiner Selbstregulierungs- Verein, Florastrasse 44, CH Zürich, T , F , info@polyreg.ch, Investors own the accounts, and the accounts are opened under their names with bank or broker. The investment manager has only a limited power of attorney on investors' accounts. 17) Trading Transparency Investors have 24 hours, seven days a week direct access to their accounts. 18) Liquidity Investors can withdraw their amounts instantly, without the need to give any notice to the investment manager. 19) Fees 0.16% Monthly Management Fee (2% Annual), and 25% Monthly Performance Fee. No Subscription or Redemption fee 20) Hurdle rate / High Watermark High Watermark 21) Minimum amount to invest $100,000 Investors are required to put only 50% of their Investment amount into the Margin Account. 22) Leverage set by bank/broker on the client account We ask the bank/broker to set up the clients' accounts at maximum 1:5, 1:10 Leverage Maximum. 4

6 23) Lock-up period None 24) Capacity to manage, why? We are trading in FX market, the biggest liquid market in the world, so our capacity is virtually unlimited 25) Account Opening Procedure In order to invest in our Trading Strategy you have to go through the following 3 steps: Step one: Disclosure Documents, Risk Assessment & Suitability -Request a copy of the disclosure documents; Read them carefully before you invest. -Fill out the prospective Investor Questionnaire; it would help us to identify your goals, and to evaluate your risk tolerance level. Step Two: Bank or Brokerage Account Opening At this step you would be asked to open an account under your name with one of our recommended banks and brokerage firms; where all cash and open positions are held. In order to open this margin account, you would need to: -Complete the bank application forms. Contact us for more information. -Provide the bank a copy of your passport or ID, and a proof of residence. Once the bank approves your application, you can fund your own account with the bank. Step Three: Limited Power of Attorney & Management Agreement -Fill out client profile application, and provide us with a copy of your Passport or ID. -Sign the Limited Power of Attorney (LPOA) which the bank will receive a copy of it. -Sign the Management Agreement. 5

7 Trading Strategy 26) Description of the Investment Strategy ICA strategy is a combination of sophisticated Automated Risk Management Model (represent 50% of the strategy), Automated Trade Management Model (represent 25% of the strategy), and High Probability Mechanical Trading System (represent 25% of the strategy). Aside to our automated market risk Management we manage operational risk with our "two-boss" matrix management organization structure which represents a solution for team-based discipline trading. Our strategy is characterized by High Sharp Ratio 1.69, Alpha 6.5% with High Reward/Risk 3. The Trading system is a combination of 2 simple patterns drawn on the daily chart. We play swings targeting pips each. Scaling out when market goes against us and pyramiding when market goes in our favour. 27) Systematic / Discretionary strategy The Strategy is: 75% systematic (automated risk and trade management) 25% discretionary (Mechanical Trading System with the same pattern setup executed repeatedly) 28) Trading System Our Trading System represents 25% of our Trading Strategy. The system is Mechanical with the same pattern setup executed repeatedly; it has 2 components: a.technical Pattern We trade only one simple pattern, this pattern has been developed by our Team, and been traded since It is a combination of 2 classical patterns; Micro pattern inside a Macro pattern. This pattern is drawn on Daily and 4 hours charts b. Behavior Pattern Shake Out, and Proactive; these are the 2 behavior patterns which we have developed, and they serve as a trigger, for our Technical pattern 29) Trading Style (Scalping, Day, Swing, Position or Long Term Trading) Swing, each swing may take between 2 hours till 14 days, targeting between 80 pips to 400 pips at each trade. Scaling Out when market goes against us, and pyramiding when it goes in our favor. 6

8 30) Number of Trades Our Trading system provides us between 8 to 16 tradable signals in a month (96 to 192 signals per year); each signal may produce up to 5 partial trades due scaling out and averaging up the open positions. Our records show that we have performed on average: 73 trades per month, and 877 trades per year. 31) Trading Volume Our trading system has leveraged the deposits on average 300 Times monthly A $100,000 deposit would produce on average $30 million monthly volumes. 32) Focus versus Diversification We only trade one Strategy within one Trading System. We are concentrated on one thing at a time. We focus on getting the maximum benefit of one Trading System rather than divide our efforts over several systems. But we diversify within the same Trading System, by trading the system in different currency pairs, and markets. 33) Strategy Strengths 1-We target between 80 to 400 pips per trade, which minimize the effect of the broker cost (spread or commission) 2-We target minimum 1:3 Risk/Reward asymmetry, that if we lost 2 trades and won one, we are still at profit. 3-We don't count on Market Timing, or Market prediction, where our trading system only represents 25% of the whole trading Strategy; whereas Risk and Trade management represents the other 75%. Making from our strategy valid all the time 4-Our Strategy works in both Trending and Range Bound Markets. 5-Our institutional management with our Operational Risk Management Model which is based on " two-boss" matrix management organization structure represents a solution for team-based discipline trading. 6-Strong Risk Management, with our two levels of risk controlling, represented by our Chief Risk Officer, and our own developed ICA Automated Risk Management System. 34) Strategy Weaknesses 1-The strategy wouldn't perform well in illiquid markets. 2-The strategy can only be executed with brokers with MT4 platform. As our Automated Risk and Trade Management currently only support MT4. 7

9 Risk and Trade Management 35) Types of risks measured We manage two types of risk: Market and Operational Risk. a. Market Risk Management Model: Our Market Risk Management Model adopts a Down-Top approach. Risk Management components: Downside Limit, Reward/Risk, Sensitivity Analysis, Scenario Analysis, Correlation Analysis, Monitoring Positions, Leverage Risk, Volatility Risk, Event Risk, Peak to Trough Draw Down Analysis, Stress Testing, and contingency plans. Our Risk Management Model adopts an anti-martingale approach, in managing the pre-trade and intra-trade risk. It is scaling out in the falling markets and averaging up in the rising market. We compound the profit by implementing a developed formula representing a combination between Compound and Flat ratio ; serving in optimizing the profit and minimizing the risk. b. Operational Risk Management Model: Our Operational Risk Management Model adopts a Top-Down approach. Risk Management components: Data management, Execution error, employee errors, system error, process tracking, behavior monitoring, performance monitoring, unauthorized activities, business interruption, Key man, Rogue Trader, Infrastructure risk, stress testing, contingency plans. We believe that the operational risk can match or even exceed the market risk. 8

10 36) Risk Management Applications We have built two platforms with sophisticated tools providing real-time risk identifying, assessing, mitigating, controlling, monitoring, and reporting. a. Market Risk Management: ICA has developed an Automated Market Risk Management Platform, which contains sophisticated tools and calculators serve in determining the optimal risk allocation per trade, optimal leverage, optimal scale out or average up formula, serving in optimizing the Reward/Risk asymmetry. The platform controls automatically the following: 1- risk 2- leverage 3- profit 4- scaling out losing positions 5- averaging up profitable positions 6- rebuilding and recovering losing positions 7- Trailing stoploss 8- Margin b. Operational Risk Management: ICA has developed an Online Trading Room, which is a functionally centralized web-based platform, helps in improving the operational efficiency. The platform represents an application for our "two-boss" matrix management organization structure. It represents a solution for team-based discipline trading. This centralized platform provides the team members with accesses to our sub platforms for processing and tracking matrix information and methodologies at any time, from any location. 37) Stress Testing We stress testing our strategy in order to identify worse peak-to-trough drawdown scenario, and to evaluate the probability its happening. In addition to avoid curve-fitting analysis. Stress testing our strategy helps us also to determine the proper risk parameters for our strategy. ICA has developed its own Monte Carlo Simulator software which can be used for analyzing the performance that a trading system or a model is capable of producing, by incorporating trading data in a sequence of Pseudorandom by using acceptance-rejection method based on probability distribution function; Than to calculate the result to produce a trading scenario or simulation, this stochastic simulation is repeated over and over, each time using a different set of pseudo-random values, producing thousands of potential scenarios; to account for the uncertainty and performance variation that is always present in trading in the financial markets. 9

11 38) Trading Parameters Conservative Strategy Risk per trade: 0.5% Max risk on all open positions: 1% Max negative month should not exceed: -5% Max Peak to Trough Draw Down: 9% Leverage per trade: X1 X2 Leverage on all open positions: X3 X6 Expected monthly net return: +3.3%, Annual target net profit: +50% Aggressive Strategy Risk per trade: 1% Max risk on all open positions: 2.7% Max negative month should not exceed: -10% Max Peak to Trough Draw Down: 17% Leverage per trade: X2 - X4 Leverage on all open positions: X6 - X12 Expected monthly net return: +6.6%, Annual target net profit: +100% 39) Rules implied to beware reaching maximum drawdown Risk is monitored and controlled by our Chief Risk Officers, with the help of our Automated Risk Management software, which is set up on an independent VPS server on the managed accounts. Our Chief Risk Officers will access to the clients' accounts, and practice real-time exposure monitoring on all the portfolio accounts with different brokers; maintaining an ongoing 24/7 live monitoring and assessment of each client portfolio with multiple limit tracking. 40) Stoploss placement The stoploss is calculated and placed automatically based on the weighted average of all the open positions of the same trade type; therefore all open positions with the same trade type would have the same stoploss, and the weighted loss would be at -1.4% at the stoploss price. 41) Trailing Stoploss We don't trail stoploss, but our system adjust stoploss automatically once we average up in the profitable markets to keep the risk limit at -1.4% 42) Trading based on Equity/Balance Leverage calculation is based on Equity. Risk percentages calculations are based on Balance. 43) Martingale / Anti martingale Our Risk Management Model adopts an anti-martingale approach 44) Average Down / Average up We don't average down or adding positions to the losing positions. Our Automated Risk Manager would close any added lot when positions are at losses. On the other hand, we Scale Out and close part of the open positions, when market start going against us. 45) Hedging We don't hedge or offest risk using Derivatives and Options. We don't even buy and sell the same instrument at the same time " offset positions". 46) Has the managed account discontinued or new applications suspended since the start of this fund? To protect the equity against adverse market conditions the manager took the action to close trading twice since From July-2008 till Jan-2009, and From Mar-2010 till Oct The first was due a DrawDown in June-2008 and the second was in part due to the purchase of the broker the accounts were owned by another broker. 11

12 Live Performance and Reporting 47) Responsibility of performance reporting and analysis Our outsourced chief investment officers CIO are responsible on providing customized performance reports to our clients on a monthly basis, and measuring the performance on a risk-adjusted basis along with the general theoretical underpinnings of Modern Portfolio Theory. We have been given certificates and confirmation letters regarding our trading performance from the following brokers or asset management companies: Capital Market Services LLC, Seneca Invest AG, ACT Currency Partners AG, Cornhill Capital ltd, Ashalon Capital LLC, and Fienex Group, Falcon Investment Management Ltd. 48) Audited Performance Our performance has been audited in, by Delta Group for Accounting and Auditing 49) Performance Recording November 2007 January 2010 November 2010 October 2011 November 2011 July 2012 July 2012 April 2013 May 2013 June 2014 July 2014 Capital Market Services (USA) LLC Interactive Brokers (U.K.) LLC Saxo Bank (SCHWEIZ) AG CitiFX Pro (Citibank, UK) Fienex Group (FXCBS, UAE) Ltd. Aura FX (NZD) Ltd. 50) Gross Performance (before deducting performance and management fee) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD % % % % % % % % % % % 51) Net Performance after deducting performance fee (25%) and management fee (2%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD % % % % % % % % % % % 11

13 52) Monthly VaR at 95% Confidence Level (Historical) %, which means that there is only a 5% chance that the portfolio will drop more than % over any given month. 53) Frequently VaR limit hit, and Recovery Time We hit this limit (-16.71%) 3 times: Period Loss% Recovery Time Jun month Jul months Oct months Jan months We have minimized our strategy risk profile, since April ) Performance Statistics (Return%, SD, Sharp Ratio, Leverage, DD) Average Annual Return: % Annual Volatility (σ): 92.77% Average Monthly Return: +8.52% Monthly Standard Deviation: 26.78% Compounded Return: % Sharp Ratio: 1.09 Total Executed Trades: 11,066 Average Leverage per trade: 1.53 Worst Peak-to-Valley Drawdown: % Positive Months Percentage: 69.51% 55) MPT Statistics (Alfa, Beta, R2, Corr. SD, Volatility) Benchmark Index Alfa (α) Beta (β) R-SQUARED (R2) Correlation S&P % -0.1% 0.1% -3.18% BARCLAYHEDGE'S BTOP FX 6.16% % -2.92% MSCI EUROPE FX HEDGE -USD 6.03% % -3.34% 12

14 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Investment Capital Advisors L.L.C. 56) Monthly performance / Average Leverage Monthly % Leverage Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD % 36.75% 53.74% % 1.28% 40.68% 24.68% 32.79% 57) Compounded performance curve against Benchmarks ICA Monthly Return% % ICA Compounded Return% MSCI EUROPE FX HEDGE -USD- INDEX S&P 500 INDEX BARCLAYHEDGE'S BTOP FX INDEX % % % % % % % % % % %

15 Investment Capital Advisors L.L.C. 58) Pips analysis / all trades PIPS PIPS

16 Investment Capital Advisors L.L.C. 59) Leverage analysis / all trades Leverage Leverage ) Profit/Loss % / All Trades P/L % P/L %

17 Investment Capital Advisors L.L.C. 61) Cumulative Profit/Loss % Cumulative Cumulative ) Trade Distribution / Pairs Instrument % XAGJPY 0.06% EURNZD 0.09% AUDCHF 0.09% NZDCAD 0.09% EURCHF 0.12% NZDCHF 0.12% GBPAUD 0.15% AUDCAD 0.27% US Crude Oil 0.41% CHFJPY 0.44% EURAUD 0.80% EURCAD 0.86% GBPCAD 1.01% Cash FX Translation 1.24% AUDNZD 1.27% CADCHF 2.25% NZDJPY 2.37% GBPCHF 2.46% AUDJPY 3.05% USDCHF 3.20% GOLD 4.47% GBPJPY 4.59% EURGBP 4.74% AUDUSD 5.54% EURUSD 5.66% EURJPY 6.10% NZDUSD 7.40% CADJPY 8.11% USDCAD 8.53% USDJPY 10.25% GBPUSD 14.27% CADJPY 8% USDCAD 9% NZDUSD 7% EURJPY 6% EURUSD 6% USDJPY 10% AUDUSD 6% EURGBP 5% GBPUSD 14% CADCHF 2% NZDJPY 2% GBPCHF 2% AUDJPY 3% USDCHF 3% GBPJPY 5% GOLD 4% 16

18 63) Profit/Loss % Distribution / pairs Instrument Loss% Distribution EURUSD % AUDUSD % NZDJPY % GBPCHF -8.76% AUDCAD -4.33% CADCHF -3.42% AUDCHF -3.31% EURGBP -2.52% EURNZD -2.16% NZDCHF -1.09% XAGJPY -0.64% NZDCAD -0.23% Profit% Instrument Distribution EURCAD 0.16% GBPAUD 0.41% USDCAD 0.53% EURAUD 0.96% CHFJPY 1.38% AUDNZD 1.41% GBPJPY 1.52% NZDUSD 1.63% US Crude Oil 1.64% GBPCAD 2.40% AUDJPY 2.68% EURCHF 4.59% GOLD 4.94% CADJPY 6.50% USDJPY 6.66% Cash FX Translation 8.33% USDCHF 12.43% EURJPY 13.47% GBPUSD 28.36% AUDUSD -30% EURJPY 13% USDCHF 12% NZDJPY -12% Cash FX Translation 8% USDJPY 7% GBPCHF -9% EURUSD -32% CADJPY 7% AUDCAD -4% CADCHF -3% AUDCHF -3% EURGBP EURNZD -3% -2% NZDCHF -1% XAGJPY -1% GBPUSD 28% EURAUD 1% GOLD 5% GBPCAD 2% CHFJPY 1% AUDNZD 1% NZDUSD 2% AUDJPY 3% EURCHF 5% GBPJPY 2% US Crude Oil 2% 17

19 64) Performance during crisis Period Performance Event Jan % Global stock markets, including London's FTSE 100 index, suffer their biggest falls since 11 September Apr % International Monetary Fund (IMF) warns possible losses which equate to $1 trillion due to the credit crunch. May % UBS AG Swiss bank announces plans to cut 5500 jobs by the middle of 2009 Sep-Oct 2008 N/A Lehman Brothers file for Chapter 11 bankruptcy protection. Merrill Lynch also gets taken over by the Bank of America. Worst week for the stock market in 75 years. Feb % Job losses to reach 7.2 million in Asia Mar % UK government debt hit 750bn in 2008 US budget deficit will reach $1.8 trillion Norway government pension fund lost $92bn Apr % Swine Flu declared public health emergency WTO predicts global trade to fall 9% The US economy lost 539,000 jobs in April May % HSBC seeks $18 billion in capital and cuts 6,100 jobs Madoff admits $50bn fraud scheme. Jun % Global oil consumption shrinks for the first time since 1993, the largest drop for 27 years. Nov % Dubai World seeks debt standstill Jan % PIGS (Portugal, Italy, Greece & Spain) debt crisis Apr-May-Jun 2010 N/A European sovereign debt crisis, Standard & Poor's downgrades Greece's sovereign credit rating to junk four days after the activation of a 45-billion EU IMF bailout. The U.S. DJIA had its worst May performance since PIGS debt crisis Mar % Powerful earthquake and tsunami devastate Northern Japan. Sep % Dow Jones industrials sees biggest two-day decline since December Nov-2011 N/A Six Central Banks take joint action to enhance global liquidity. Italy has been forced to pay record interest rates in a 10bn euro ($13bn; 9bn) auction of treasury bills. Oct % Super storm Sandy slams the Northeast and Mid-Atlantic States. Mar % Cyprus bailout 40.00% 30.00% Performance During Crisis 20.00% 10.00% 0.00% % % % 18

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