Friday, 15th December, 2017

Fund Facts

Avem Foreign Exchange Focus Fund

Avem Capital is committed to fostering a culture of openness with our Clients.  This page gives our Investors some of the detail behind the operation of the fund, so you can understand how our fund operates and make an informed choice as part of your investment.

Holdings

  • Investment in six key currency pairs focussing solely on the British pound, US dollar, Euro, Canadian dollar, Japanese Yen and Australian dollar.
  • The following chart shows the overall proportion of currencies traded, although the mix may vary in the future as our traders take advantage of the opportunities available

Income history

  • The following chart shows the prior performance of our lead trader, generating 73.7% per annum on average and some 314% in under 3 years.

PaMM Spot FX Trading

What is a PAMM account?

  • Percentage allocation management module, also known as percentage allocation money management or PAMM, is a form of pooled money Forex trading.
  • An Avem Capital Foreign Exchange Focus Fund investor allocates their capital with a hard risk limit to their clearing house account. Our fund managers and floor traders may manage multiple Forex trading accounts using our own capital and such pooled monies.
  • In order to make this feasible, we ask each Investor, as part of the on boarding process, to signup with Limited Power of Attorney (LPOA). This signed agreement accepts that Investors agree to take the risk for the Forex trades, by allocating their capital into an account, which Avem Capital will trade by proxy, adding to our pooled money to trade Forex per the contracted trading style and strategy.

Avem Capital PAMM Based Forex Trading

  • Avem capital utilises a Percentage Allocation Management Module (PAMM) style of management, allowing us to trade an aggregate of our total client accounts per subscribed strategy.
  • Unlike ‘copy’ accounts, or fully managed accounts, our Investor’s accounts are fully segregated from our management account. We also have no physical access to their account. It is our Investor’s who have access to their own account. They have the power to close, withdraw or add funds at any time (note: our jointly appointed clearing house will provide notice to Avem Capital so accounts are allocated to suit). The result is providing complete peace of mind to you the Investor.
  • Investors have a 1-2-1 relationship with our selected clearing houses, all of which are fully FCA regulated and with extremely large capital / liquidity. Professional accounts are not segregated from the clearing house funds.

Avem Capital PAMM Accounts

The role of our clearing house is to:

  • Provide a secure, reliable platform that allows Avem Capital and our traders to interact with investors.
  • Facilitate the trading activities of Avem Capital within the realms of allowed regulations.
  • Facilitate the account keeping, deposits, withdrawal and related activities.

Client Account Allocation

  • Clients of the Avem Foreign Exchange Focus fund allocate all resources of their investment into one single account. Avem fund managers, risk managers and global markets executives define the current strategy that we deem most appropriate for the market conditions.

Allocation of Profits

  • Profits from these strategies are then allocated back to investors according to the percentage of the value they contributed to the fund. The investor then enters the next trading period, the cycle continuing until the investor either chooses to inject further capital in their account or close it.
  • The ‘percentage’ element of the PAMM account derives from the way profits are distributed between our investors. When a Client invests in the Foreign Exchange Focus Fund, their investment is calculated as a percentage of the total fund value. This percentage is the percentage of any investment profits that this Client receives.
  • Naturally, as new investors join, everyone’s percentages are adjusted so everyone receives a fair percentage of the profits according to the amount they invested, taking into account the capital growth of prior investors. For prior Investors, their new percentage will be based on the value of the investment at the time the new investor joined, not their original investment.
  • In the example below, despite having contributed 20% of initial investments, the new Investor receives only 19.2%, as other Investors capital has grown in the meantime.

High Water Mark Profit Guarding

  • Avem Capital ensures that each Investor only shares profits based on a High Water Mark (HWM) model. As an Investor you will only pay a profit share fee to Avem if the increase in their investment exceeds the previous maximum value.If the fund makes a loss, then the Client will not pay a profit share fee until the fund has recovered the loss in full.
  • For example, if Avem were to generate a $6,250 net return for a client (i.e., net of commission) on a $125,000 account, his or her account would be charged $2,500 in performance fees. If, in the following month, the account loses $2,500, no performance fee would be triggered.
  • Crucially, any positive net returns in future would need to recapture the lost $2,500 before becoming eligible for the performance fee. For example, if, in the third month, the account were to grow by $10,000, only $7,500 of the growth would be eligible for performance fee charges.

This information does not represent investment advice, recommendation, or inducement to buy or sell financial instruments. Avem Capital accepts no responsibility for any use that may be made of the information provided and for any consequences that may result therefrom. No express warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at his or her own risk.

Avem Capital Limited is a company registered in England and Wales under number 10683565. The company's registered office is 3 London Wall Buildings, London, England, EC2M 5PD.