FX Momentum. A Currency Futures Strategy Main Office: Odensgatan 11A, 5tr, Uppsala Tel: +46 (0)

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1 FX Momentum A Currency Futures Strategy General Description Investment Strategy FX Momentum is an investment strategy, designed to catch shortterm trends the worldwide currency markets, developed by the Swedish company Fund Management AB () FX Momentum stands for Foreign Exchange (FOREX) Momentum The main focus is to follow short-term trends in the currency markets via futures listed on North American exchanges The manager seeks to buy high to sell even higher or sell low to buy it back lower The model takes long as well as short positions The result of the FX Momentum is not related to any benchmark or any general market development How the market moves: up, down or sideways, thus has no impact on result The development of the portfolio is entirely dependent on the manager s ability to systematically identify and monitor short-term trends in the dollar index and the major currency pairs: the euro, Japanese yen, British pound, Swiss franc, Canadian dollar, Australian dollar and New Zealand dollar Content GENERAL DESCRIPTION Investment Strategy Risk Correlation with Market Indices Objective PERFORMANCE Real Results Since Inception Monthly Performance July March PRACTICAL INFORMATION The Manager How to Invest? Fees Approval Taxes Contact Disclaimer wwwhasafumacom info@hasafumacom 1

2 General Description continued Risk FX Momentum seeks an exceptional result and thereby takes greater risk than traditional mutual funds normally do, since a high yield is directly related to a high risk However, there is currently no universally accepted definition of risk A common measure of risk in financial context is the so-called standard deviation, how far from the mean the equity curve maximally moves up and down With this measure FX Momentum must be considered a fairly high risk program, a price the investor pays for the possibility to achieve high returns during periods when the strategy performs well This means that the investor must be prepared for longer or shorter drawdown periods On a scale of 1-7 the risk level in FX Momentum is estimated to 6 Declines in the equity curve are related to periods when the selected markets move sideways without strong intraday trends The strategy has proven to work well in fast moving markets with strong short-term trends up or down Correlation with Market Indices FX Momentum is not correlated with any benchmark or index, which means that the result is not dependent on any specific market conditions or any specific market s long-term development The result also has no correlation with the volatility The result depends on the manager s ability to take advantage of short-term fluctuations in the currency markets Objective The objective of FX Momentum is to achieve high risk-adjusted returns for its investors over a longer period of time The power of compounding, where past profits are retained and reinvested, assists in providing exceptionally high performance for profitable trading models However, there is no guarantee that the model will be profitable in the future or that there will be any profits to reinvest An investment in FX Momentum would preferably last at least for two years, but a time horizon of 5-10 years should be every investor s goal wwwhasafumacom info@hasafumacom 2

3 Performance Real Results Since Inception (July 2012) The program FX Momentum started trading 2 of July 2012 and has until June 2014 returned almost 38 percent on invested capital, after all fees Results from real trading in the FX Momentum program July 2012-June 2014 after all fees deducted A deposit of $20000 has grown to $27596 after all fees: commissions, management and incentive fees Monthly Performance July May 2014 Of the 24 months of trading, the program FX Momentum has had 16 winning months and 8 losing months The biggest monthly loss so far is -614% from August 2013 Results from real trading in the FX Momentum program month by month July 2012-June 2014 after all fees deducted wwwhasafumacom info@hasafumacom 3

4 Performance continued The best month was January 2013 when the portfolio value rose by 12,7 percent After 24 months of trading the result after all fees deducted is 3798% However, past performance is no guarantee for future results Practical Information The Manager Manager and developer of the FX Momentum trading program is CTA Henrik Hallenborg, who since 2002 has been actively trading futures on a proprietary account on the CME / Chicago Board of Trade Mr Hallenborg is a member of the NFA (National Futures Association) and is since January 2012 registered as a CTA (Commodity Trading Advisor) and CPO (Commodity Pool Operator) with the CFTC (Commodity Futures Trading Commission) Henrik Hallenborg has for several years produced a domestic macro letter for customers of a major European bank Today he writes daily articles and columns about trading for the site Borstjanarense which he co-founded in 2006 He has also for several years appeared regularly in a leading Swedish Internet Bank s monthly letter about derivatives, and sometimes his liberal market chronicles reaches the Ludwig von Mises Institute s Swedish website How to Invest The FX Momentum model is registered under under the category Managed Futures, which is accounts managed by CTA s (Commodity Trading Advisors) registered by the CFTC (Commodity Futures Trading Commission) Investments are made in futures contracts on asset classes such as equity indices, commodities, currencies and interest rate related instruments Investment in FX Momentum is made by opening a private account in one s own name with a Futures Commission Merchant (FCM) through an Introducing Broker (IB) This account is then connected to CTA Henrik Hallenborg s block for FX Momentum FX Momentum works with Gain Capital as FCM Gain Capital is listed on the New York Stock Exchange with the ticker symbol GCAP Introducing Broker for FX Momentum is Global Futures Exchange & Trading Co, Inc wwwhasafumacom info@hasafumacom 4

5 Practical Information continued The minimum deposit in FX Momentum is $ The invested capital is segregated (held separately) from any of the FCM:s (Gain Capitals) own funds Customer funds are not subject to creditor claims against an FCM should it become financially unstable or insolvent, and customer funds can be transferred to another FCM if necessary Even if customer funds are properly segregated, there is however no guarantee that clients will not be subject to risk of loss of their funds in the event of a FCM s bankruptcy The deposit is based in North American dollars Investors in the FX Momentum receive daily reports via about the activity and capital development of the account It is also possible to follow the trades conducted by the manager in real time via a simple application on your computer or smartphone Fees Fees are charged for management and administration as well as for the regulatory costs emanating from the National Futures Association The Advisor will charge a fixed yearly management fee of 2% of net capital, calculated and paid monthly in arrears by 1/12 (0167%) per month The Advisor will charge a monthly incentive fee of a maximum of 20% of net profits, with application of the High Water Mark principle, which means that the fee are only charged in cases where the capital reaches a new peak These fees are calculated on the balance of the account on the last trading day of each month and deducted directly from the deposit The commissions may vary and is around $14 per round trip, which means that the cost of buying and selling in total will be around $14 per contract FX Momentum has no fees for deposits or withdrawals Approval The FX Momentum trading program is regulated by the National Futures Association (NFA) This means that a Risk Disclosure Document, developed according to standards set by the US Commodity Futures Trading Commission (CFTC), has been reviewed and accepted by NFA The Risk Disclosure Document must also be approved and signed by the investor before entering the program wwwhasafumacom info@hasafumacom 5

6 Practical Information continued The risk document for FX Momentum presents in detail the involved parties (Manager, FCM and IB), as well as the strategy and the costs Taxes do not provide tax advice Investors should consult their professional advisers on the tax consequences of an investment in the FX Momentum program based on their own circumstances As for European investors, the program FCM, Gain Capital, has no obligation to report to European tax authorities As an investment in the FX Momentum program is made via a personal account with the FCM Therefore it is the investor s personal responsibility to declare any profit and wealth to the authorities in the country where he or she is registered for taxation Contact For more information on FX Momentum welcome to call one of the numbers below, or visit s website Website: wwwhasafumacom Main Office Uppsala: +46 (0) Trading Office Madrid: FCM: Gain Capital The minimum investment in the FX Momentum program is $ wwwhasafumacom info@hasafumacom 6

7 Disclaimer RISK DISCLOSURE AND DISCLAIMER STATEMENT The risk of loss in futures trading commodity contracts can be substantial You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources Commodities- and futures trading have large potential risks, in addition to any potential rewards You must be aware of the risks and willing to accept them, to invest in the futures- or commodities markets Do not risk money you cannot afford to lose You could lose more than your intended amount of money at risk An investment in commercial programs presented on this website is entirely at your own risk You should consult your broker or financial advisor before investing in the strategies offered on this website Any testimony does not indicate future results, profit or success and may not be representative of the experience of others or demonstrate or your own experience wwwhasafumacom 7