The MKT Tactical Fund operates under a flexible allocation approach. The investment objective of the Segregated Portfolio is to seek risk adjusted returns for Shareholders through the pursuit of three sub strategies, each as further described below. The investment Manager expects that the Segregated Portfolio will allocate at any one time approximately 50-70% of the assets under management of Segregated Portfolio to the Fixed income sub strategy, with the balance of the assets under management being allocated to cash or the Foreign Exchange sub strategy or the Equities sub strategy in any proportion as determined by the Investment Manager in its sole discretion.

 

Fixed income sub strategy

 

Within this sub strategy, the Investment Manager expects to purchase a mix of high yield bonds based in one or more of the following currencies: United States Dollar (USD), the Euro (EUR) and the Swiss Franc (CHF). The Investment Manager expects that these will then be hedged against each other through forward transactions.
The Segregated Portfolio's investments in high yield bonds will generally have a credit rating of "A" or better by S&P or a similar rating by another rating agency.

Foreign exchange sub strategy

Within this sub strategy the Investment Manager intends to trade the currencies of leading industrial economies or financial products linked thereto including , but not limited to, the United States Dollar (USD), the Swiss Franc (CHF) and the British Pound (GBP).
The Investment Manager will utilise a proprietary trading system that in turn uses a trading platform called "TradeStation", a trading platfrom developed by the TradeStation Group Inc., and its operating subsidiaries (the "Trading System"). The Trading System will analyse current market conditions in order to identify trading opportunities based on trend continuation or trend reversal signals in the markets. The Investment Manager expects that all orders to open, close or limit trading positions will be executed manually; all trades within this sub strategy are expected to be opened and closed with the use of entry and stop loss orders; the Investment Manager expects that there will be approximately 50 basis points between the stop loss order and the entry point, depending on the Investment Manager's Perception of general market volatility.
The Investment Manager expects that trading activity within this sub strategy will amount to approximately 100-150 trades per annum and that levarage on any single trade is not expected to exceed 2 times the Net Asset Value of the Segregated Portfolio.

Equities sub strategy

In order to achieve the investment objectives of the Segregated Portfolio, the Investment Manager intends that the Segregated Portfolio will also invest into a range of other financial instruments linked to European and North American equities markets, including nut not limited to shares, Contrast for Difference and Options. Where the Investment Manager, in its sole discretion, believes that it would be in the interests of Shareholders to do so, the Segregated Portfolio may also trade in other worldwide equities markets, including emerging financial markets.