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Futures, Hedge and Derivative Funds
OM-IP - capital guaranteed funds
LionTamer - capital protected funds
Fidelity Options Fund
GAM Multi Trading Fund
LYFORDS recommends managed Futures and Hedge funds, collectively known as Derivative Funds, to reduce the risk and enhance the return of investment portfolios. Many financial planners do not recommend managed futures, we believe out of ignorance.
Historically when we look at major share market corrections such as:
- 1987 share market correction:
- NZ share market dropped 51.8%, the GAM fund mentioned below gained 52.4% in the same environment.
- US share market dropped 25%, the average managed commodity futures fund increased 60.4%.
- 2001 terrorist attack on WTC:
- US share market dropped 14.5%, the GAM fund gained 7.3%, OM-IP funds 8.2% ( and a further 4.6% in October).
Futures and Hedge funds can make money in both a rising and dropping share market. They have a low correlation with share markets.
Refer also to Portfolio Construction under FAQ's.
Managed commodity futures funds have gone through poor performances in the last 2 years.
The current economic environment now favours these funds where the price/demand spreads are widening.
OM-IP Capital Guaranteed Funds
Click here to register your interest in the next issue
Performance of Previous OM-IP Capital Guaranteed funds
The OM-IP (OMIP 220) issues has been particularly successful. Returns for previous issues have been:
| Fund | Date Issued | Net Asset Value (exit price) | Capital Guaranteed return | % gain since start | per annum return, % |
| Man OM-IP 220 Ltd | Aug-97 | $5.0457 | 4.5987 | 404.57 | 13.73 |
| Man Series 2 OM-IP 220 Ltd | Jan-98 | $4.3684 | 4.3027 | 336.84 | 12.88 |
| Man Series 3 OM-IP 220 Ltd | Jul-98 | $3.6314 | 3.6965 | 263.14 | 11.69 |
| Man Series 4 OM-IP 220 Ltd | Jun-00 | $2.7863 | 3.1606 | 178.63 | 11.08 |
| Man Series 5 OM-IP 220 Ltd - Matured | Jan-01 | $2.0837 | Matured | 108.37 | 8.34 |
| Man Series 6 OM-IP 220 Ltd | Jun-01 | $2.0824 | 1.5605 | 108.24 | 8.74 |
| Man Series 7 OM-IP 220 Ltd | Jun-02 | $1.8969 | 1.3901 | 89.69 | 8.61 |
| Man Series 8 OM-IP 220 Ltd | Nov-02 | $1.7485 | 1.4330 | 74.85 | 7.92 |
| Man Series 9 OM-IP 220 Ltd | Oct-03 | $1.3992 | 1.1810 | 39.92 | 5.37 |
| Man Series 10 OM-IP 220 Ltd | May-05 | $1.4068 | 1.2155 | 40.68 | 7.32 |
| Man Series 11 OM-IP 220 Ltd | Apr-06 | $1.0528 | 1.0105 | 5.28 | 1.32 |
| Man Series 12 OM-IP 220 Ltd | Dec-07 | $0.9220 | 1.0000 | (7.80) | (3.54) |
| Man OM-IP 220 2008 Ltd | Dec-08 | $0.8785 | 1.0000 | (12.15) | (9.84) |
| Man OM-IP 320 Diversified Ltd | Dec-98 | $1.5437 | 2.0824 | 54.37 | 3.93 |
| Man OM-IP Strategic Ltd | Aug-99 | $1.9682 | 2.6834 | 96.82 | 6.61 |
| Man OM-IP Strategic Series 2 Ltd | Dec-99 | $1.7977 | 2.0970 | 79.77 | 5.89 |
| Man OM-IP Hedge Plus Ltd | Jan-02 | $1.2893 | 1.2221 | 28.93 | 3.16 |
| Man OM-IP 130 Plus Ltd | Jul-03 | $1.3743 | 1.5028 | 37.43 | 4.88 |
| Man OM-IP 140 Plus Ltd | Aug-03 | $1.4731 | 1.6060 | 47.31 | 6.06 |
| Man OM-IP 140 Plus (AUD) Ltd | Jun-04 | $1.3923 | 1.5879 | 39.23 | 5.92 |
| Man OM-IP 150 Plus (NZD) Ltd | Jun-04 | $1.4917 | 1.7016 | 49.17 | 7.20 |
| Man Series 2 OM-IP 150 Plus (NZD) Ltd | Aug-05 | $1.2132 | 1.5000 | 21.32 | 4.31 |
| Man Series 2 OM-IP 140 Plus (AUD) Ltd | Aug-05 | $1.0947 | 1.4000 | 9.47 | 1.99 |
| Man OM-IP MultiStrategy Ltd | Jan-04 | $0.9603 | 1.0661 | (3.97) | (0.65) |
| Man OM-IP 15seven Ltd | Oct-04 | $1.5320 | 1.1030 | 53.20 | 8.19 |
| Man Series 2 OM-IP 15seven Ltd | Dec-06 | $1.1195 | 1.0181 | 11.95 | 3.53 |
| Man OM-IP Stratum Ltd | Dec-04 | $1.1315 | 1.0358 | 13.15 | 2.38 |
| Man OM-IP 16eight Ltd | Dec-05 | $1.2270 | 1.0216 | 22.70 | 4.93 |
| Man OM-IP Eclipse Ltd | Aug-06 | $1.2428 | 1.1210 | 24.28 | 6.25 |
| Man OM-IP 2Eclipse Ltd | Apr-07 | $1.1220 | 1.0771 | 12.20 | 4.03 |
| Man OM-IP 3Eclipse Ltd | Apr-08 | $0.9205 | 1.0000 | (7.95) | (4.23) |
| Man OM-IP Vision Ltd | Aug-07 | $0.9069 | 1.0000 | (9.31) | (3.71) |
| Man OM-IP Essential Ltd | Aug-08 | $1.0202 | 1.0000 | 2.02 | 1.27 |
| Man OM-IP AHL Ltd | Apr-09 | $0.9310 | 1.0000 | (6.90) | (7.50) |
| Man OM-IP 2AHL Ltd | Dec-09 | $0.9885 | 1.0000 | (1.15) | (4.52) |
# Prices valued at 28 February 2010
* Past performance is not necessarily an indication of future performance. Returns are gross returns in the hands of the investor based on AUD.
** Annualised return, not a full year
Hedge fund manager OM Strategic Investments Limited has changed its name to Man Investments Australia Limited. The change reflects the name of the parent company Man Group plc. Man Group plc is now one of the world's leading financial services group with more than US$30 billion under management. The company is listed on the London Stock Exchange and has a market capitalisation of US$8.1 billion.
NOTE: To avoid complications under the Foreign Investments Funds (FIF) Regime we recommend holding your exposure to this fund below $50,000 (NZD original investment) and the new taxation rules 'Fair Dividend Rate' effective 1st July 2007. We recommend discussing your existing portfolio with us to ensure this investment compliments what you already have. Refer to Taxation for further information.
Liontamer Capital Protected Fund
| Fund | Date Issued | Exit Price | % gain since start | per annum return, % |
| EMERGEseries2 (Trust34) | Jan-10 | $1.0000 | - | - |
| COMBIseries6 (Trust33) unpro | Oct-09 | $1.0046 | 0.46 | 1.11 |
| COMBIseries6 (Trust33) pro | Oct-09 | $1.0032 | 0.32 | 0.77 |
| AUSTRALIAseries1 (Trust32) unpro | Aug-09 | $1.0782 | 7.82 | 13.78 |
| AUSTRALIAseries1 (Trust32) pro | Aug-09 | $1.0440 | 4.40 | 7.66 |
| ALTENERGYseries1 (Trust30) bst | Nov-08 | $0.9600 | (4.00) | (3.02) |
| ALTENERGYseries1 (Trust30) base | Nov-08 | $1.0491 | 4.91 | 3.66 |
| GLOBALseries6 (Trust29) trk | Nov-08 | $1.6000 | 60.00 | 42.26 |
| KNOCKOUTseries1 (Trust28) | Oct-08 | $1.0000 | - | - |
| COMBIseries5 (Trust27) | Jul-08 | $1.0000 | - | - |
| ANGELseries1 (Trust26) bst | Jul-08 | $1.6000 | 60.00 | 32.58 |
| ANGELseries1 (Trust26) trk | Jul-08 | $1.6000 | 60.00 | 32.58 |
| EMERGEseries1 (Trust25) bst | May-08 | $0.9000 | (10.00) | (5.58) |
| EMERGEseries1 (Trust25) base | May-08 | $1.0000 | - | - |
| GLOBALseries5 (Trust24) s-bst | May-08 | $0.9000 | (10.00) | (5.58) |
| GLOBALseries5 (Trust24) bst | May-08 | $1.0000 | - | - |
| GLOBALseries4 (Trust23) | Jan-08 | $1.0000 | - | - |
| TIGERseries3 (Trust22) | Oct-07 | $1.0000 | - | - |
| WATERseries1 (Trust21) s-bst | Nov-07 | $0.9000 | (10.00) | (4.42) |
| WATERseries1 (Trust21) bst | Nov-07 | $1.0000 | - | - |
| COMBIseries4 (Trust20) | Oct-07 | $1.0000 | - | - |
| GLOBALseries3 (Trust19) bst | Aug-07 | $1.0000 | - | - |
| GLOBALseries3 (Trust19) s-bst | Aug-07 | $0.9000 | (10.00) | (4.00) |
| BRICKseries1 (Trust18) bst | May-07 | $1.0592 | 5.92 | 2.05 |
| BRICKseries1 (Trust18) base | May-07 | $1.1194 | 11.94 | 4.06 |
| COMBIseries3 (Trust17) bst | Dec-06 | $1.0905 | 9.05 | 2.70 |
| COMBIseries3 (Trust17) trk | Dec-06 | $1.1466 | 14.66 | 4.30 |
| GLOBALseries2 (Trust16) bst | Sep-06 | $1.0000 | - | - |
| GLOBALseries2 (Trust16) s-bst | Aug-06 | $0.9000 | (10.00) | (2.90) |
| TIGERseries2 (Trust15) bst | May-06 | $1.0064 | 0.64 | 0.17 |
| TIGERseries2 (Trust15) trk | May-06 | $1.0000 | - | - |
| JAPANseries1 (Trust14) | Dec-05 | Matured | ||
| GLOBALseries1 (Trust13) bst | Nov-05 | $1.0000 | - | - |
| GLOBALseries1 (Trust13) min | Nov-05 | $1.7637 | 76.37 | 40.56 |
| TIGERseries1 (Trust12) | Aug-05 | Matured | ||
| MONEYseries3 (Trust11) Inc | May-05 | $1.1506 | 15.06 | 2.94 |
| MONEYseries3 (Trust11) Acc | May-05 | $1.6233 | 62.33 | 69.64 |
| COMBIseries2 (Trust10) | Dec-04 | $1.1681 | 16.81 | 3.21 |
| MONEYseries2 (Trust9) Inc | Nov-04 | $1.1802 | 18.02 | 3.37 |
| MONEYseries2 (Trust9) Acc | Nov-04 | $1.1158 | 11.58 | 2.33 |
| MONEYseries1 (Trust8) | Jul-04 | $0.9500 | (5.00) | (1.09) |
| EASYseries4 (Trust7) | May-04 | $3.1528 | 215.28 | 41.13 |
| COMBIseries1 (Trust6) | Apr-04 | Matured | ||
| SUPERseries2 (Trust5) | Feb-04 | $1.0693 | 6.93 | 1.11 |
| EASYseries3 (Trust4) | Feb-04 | $1.0393 | 3.93 | 0.64 |
| SUPERseries1 (Trust3) | Nov-03 | $1.2503 | 25.03 | 3.59 |
| EASYseries1 (Trust1) | Jul-03 | $1.1876 | 18.76 | 2.61 |
Prices valued at 28 February 2010
Fidelity Options Fund
The Options Portfolio is a hybrid fixed interest investment using cash deposits, bills and other short-term financial instruments as security for writing leveraged options. Fidelity Life is the only company in New Zealand offering this type of investment choice for retail investors. Tyndall Investment Management manages the Options Portfolio for Fidelity Life
Much like a property investor uses their own house as security to leverage and buy more houses, the money is then used as security to sell option contracts to various banks. These option contracts are based on movements in the 10-year government bond rate over a 30-day period. The bank pays Fidelity a premium for taking the risk that the 10-year rate moves more than 25 basis points (0.25%) in the next month. It is analogous to an insurance contract, where Fidelity would receive a premium but must pay out if a particular event occurs
Click here for further information on this fund.
ACTION
We recommend contacting us and discussing your current portfolio and the merits of including one of these managed futures funds.