Company Presentation
September 2008
Varengold Basic Information
Market Overview and Strategy
Backups
Only German Investment Bank specialized in Managed Futures Varengold is the only German Investment Bank that is exclusively specialized in Managed Futures.
Award Winning Products
As pioneers, Varengold created the first German Fund of Hedge Funds with a focus on managed futures in 2006. This fund won multiple best German Fund of Hedge Funds awards in 2007.
(Awards from the I.B.C. Consulting for Institutional Banks and the €uro-Fund Award)
Pioneer as "Contract for Difference" (CFD) - Broker
Since 2000, Varengold has worked with the Hanseatic Brokerhouse Securities AG to offer the derivative "Contract for Difference" (CFD), and was the first German Investment Bank to offer such a product.
Operator of the First Managed Future Manager Portal
Varengold created the first managed futures platform for managers throughout the world, (www.ctaportal.de), that gives investors direct and secure access to a world wide network.
Managed Futures are investment products based on standard contracts, particularly futures, and options, which are actively managed by Managed Futures Managers.
Properties of Managed Futures:
- Extremely high transparency through the use of market traded derivatives, and the strict regulation by the appropriate oversight boards.
- Drive returns: generally double digit annual return.
- Risk diversification across diverse market sectors (stocks, bonds, commodities, derivatives, etc)
- Zero correlation to stocks, bonds, hedge funds and private equity, which provides good diversification in investment portfolios
- Outstanding characteristics of risk reduction, since both short and long trades are possible.
ÎManaged Futures – Value from Management!
Traditional Hedge Funds
- No regulation requirements for the Manager
- No limitation of the choice of investment
- Investment is partially illiquid, since it is not traded on a market
- Highest monthly NAV Evaluation
- Straight up purchasing of investments
Î
Nontransparent regarding the product choice and manager style
Managed Futures Funds
- Managed Futures Manager are regulated i.e. by the Commodity Exchange Act
- Pure exchange traded, with futures of different investment types
- Multiple styles used
- Extremely liquid
- Available on an account basis, allowing total transference of each transaction
- Recognition of style drifts
"Managed Futures are no more risky than traditional stock investments."
Source: IASG.com, Professor Thomas Schneeweis, University of Masachusetts
The Varengold business areas Asset Management (AM) in Managed Futures, and Capital Markets Brokerage (CM) interact strongly with another – new customer acquisition can positively affect each business area.
AM:Varengold Asset Management in Managed Futures
Development of fund of funds, as well as portfolio management with Managed Futures
AMCustomer CM
CM: Varengold Capital Markets – Brokerage
Full-Service Online Trading in:
- Futures / Options,
- Currency (Forex),
- Contracts for Difference (CFDs)
AM
Customers CM
AM: Varengold Asset Management in Managed Futures
- Fund of funds management with Managed Futures Managers
- Product development and implementation in respect to customer needs
- Evaluation and observation of Managed Futures Mangers, their strategies, risks and the optimal portfolio combination
- Collection of a wide manager pool with individually selected managed futures managers, and a worldwide network of nearly 1,000 Managed Futures Managers
- Highly independent due to the large selection of Managed Futures Managers.
- First class risk management on the level of single Managed Futures-Manager and -Portfolio
- Varengold Hedge Fund Hotel offers a specific network as an incubator and a jump starter for young and promising managers.
CM: Varengold Capital Markets Brokerage
- Online Trading of:
- -Futures / Options
- -Currency (Forex)
- -Contracts for Difference (CFDs)
- German and English language order and support desk
- Outstanding technology and platform with a unique connection to the infrastructure and the security of a German Investment Bank with German account management
Our customers and target groups represent a world wide spectrum.
Rough summary of clients, based on total assets in Varengold Asset Management
Internationality in area Varengold Capital-Markets-Brokerage
(International distribution)
Varengold Basic Information
Market Overview and Strategy
Backups
Harvard and Yale are portfolio benchmarks. Hedge funds are solid portfolio elements, and are gaining more focus in portfolios
Harvard
- Between 1974 and 2006, Harvard Univerity's profile achieved an average annual return of 11.2%
- Managed Assets: \$ 40.8 Billion USD (Date: 30.6.2007), Assets in 11,000 securites
Yale
- Over the last 20 years, the portfolio of Yale University achieved an average annual return of 16.1%
- Managed Assets: \$ 18.0 Mrd. USD (Date: 31.12.2006)
Alternative investments and hedge funds belong to a market segment with clearly above-average groth potential in Germany.
Source: Commerzbank "Der deutsche Hedgefonds Markt im Aufbruch?"
Varengold is unique in Germany – the wide arrangement of wealth generating entities itself barely offers a competitor.
Source: Varengold Wertpapierhandelsbank AG
Dynamic growth of returns and sustained growth of shareholder value through...
- 1. … the acquisition of new clients in Asset Management, and thereby securing a leading position in the segments of Managed Futures and hedge funds
- 2. … the international gain of new clients in Capital Markets Brokerage, and the further improvement of our top position in the area of handling Futures and Options, CFDs, and Forex
- 3. … strategic investments and cooperation
ÎGoal oriented further Growth – Using existing Economies of Scale!
Varengold Basic Information
Market Overview and Strategy
Backups
Varengold grew from a Managed Futures manager to a full-service investment bank for products and services in managed futures.
- 1995 Steffen Fix and Yasin Sebastian Qureshi found the company Varengold as a Limited Liability Partnership, and successfully implement their own self-developed trading strategies. (TOP 10 in ITR-Ranking)
- 1997 Varengold enters the market for online brokerage, and is one of the first German companies to offer Live-Reporting
- 1998 The company receives permission to operate as a credit institute from the Federal Banking Supervisory Office (BAKred)
- 1999The company expands the worldwide network of Managed Futures Managers
- 2000 Varengold purchases 26% ownership in Hanseatic Brokerhouse Securities AG, and together with Hanseatic became one of the first German brokers to successfully offer CFDs
- 2003 The company receives permission to operate as an Investment Bank, or Wertpapierhandelsbank, under §1 Abs. 3d Satz 3 KWG by the authority of the Federal Institute for Financial Services Supervision (BaFin)
Today, Varengold is an established service provider, and has expertise in managed futures with its own brokerage platform.
- 2004 Varengold expands its product structure for Managed Futures and hedge funds for institutional clients, and initiates the first German Managed Futures Manager platforms.
- 2005Varengold issues the hedge fund certificate "VK1-Index Certificate".
- 2006 Varengold, together with Société Générale and Hansainvest, creates the "HI Varengold CTA Hedge", the first approved German Managed Futures Hedge Fund of Funds, and goes online with the first German Managed Futures Manager platform, "cta-portal.com".
- 2007 Entry standard listing of Varengold stock on the Frankfurt Stock Exchange (ISIN DE0005479307) on March 20, 2007
- 2008 Multiple awards for the "HI Varengold CTA Hedge", including Best German Hedge Fund of Funds 2007.In addition to the headquarters in Hamburg, Varengold maintains service support centers in Shenzhen (China) and Zürich (Switzerland).
Contact
Varengold Wertpapierhandelsbank AG
Grosse Elbstrasse 2722767 Hamburg Germany
Tel.: +49.40.66 86 49 0Fax: +49.40.66 86 49 49
www.varengold.de [email protected]
Disclaimer
- This material is supplied by Varengold Investment Bank for information and introduction of the company.
- Historical performance is no guarantee for future performance. Therefore, shown returns and prices shall serve as an orientation and are no binding offer.