The Concept

Overview

FX Managed Accounts have been created for Investors with capital to be allocated to FX as an asset class but who does not necessarily want to trade FX on their own. The Investor appoints one or several Currency Managers who will execute FX based on their specific strategy. Unlike mutual funds or hedge funds which commingle the funds with other investors, a FX Managed Account is in the Investors name and all or part of the funds can be redeemed within a short period of time. The Managed Account is held within a Prime Broker who also acts as clearer of the relevant FX trades. The Managed Account holds the Investor positions and allows him to follow profit/loss development for each of the currencies in the account. Based on the Investors long-term goals, risk tolerance and time horizon; the Investor can select a Currency Manager with the appropriate trading strategy to actively manage the portfolio.

FX as an asset class

FX as an asset class of its own has become an integral part of an institutional Investors overall portfolio given that it is highly uncorrelated as compared to bonds and equities. To have increased possibility of positive return without any significant increase in risk, active FX trading is widely used to improve the overall performance of an investment portfolio. Claesson Capital Introduction is introducing the concept of FX Managed Accounts in the form of the Claesson FX Managed Account program. Through this program, an investor can achieve exposure to the currency markets.

Basic Structure

Claesson Capital Introduction offers Managed Accounts to Investors who would like to achieve exposure to the currency markets. The Investors can appoint one or several of the Currency Managers within the Claesson FX Managed Account program. The Currency Manager trades on behalf of the Investor with a bank acting as clearing and account holding institution, a Prime Broker. The Currency Manager can trade with several banks, Executing Brokers. These Executing Brokers are used in order for the Currency Manager to be able to get the best possible price in order to give the Investor the best execution available. The Currency Manager will be using the Prime Broker infrastructure (or similar external systems which the Prime Broker has integrated to) for post trade allocations.