FTC Capital is concentrating asset management in Vienna: now 100 per cent
FTC, Austria's specialist in managed futures, is concentrating all the group's activities in Vienna with immediate effect. The offshore management subsidiary is being closed. From February, FTC is also presenting important new products. Among other innovations, the flagship product FTC Futures Fund Classic will offer daily liquidity.
On 1 January 2010, a long-planned change took effect: starting in the New Year, FTC Capital GmbH in Vienna took over all the management responsibilities of the subsidiary FTC Asset Management Bahamas Ltd. While all futures and equity funds which are open to the public were already domiciled and regulated in the EU, the fund manager itself is now subject to European standards. As a securities firm, FTC Capital is now subject to the oversight of the Austrian financial supervisory authority FMA.
FTC founder and CEO Eduard Pomeranz sees this measure as an appropriate response to the increased demand for transparency and regulation of financial products. “Offshore is a term which is seen increasingly negatively in connection with asset management. This is why we relocated all our own funds in the EU in recent years. The fact that the management of all funds and institutional special mandates is also relocating to Vienna is a clear statement of our deliberate commitment to the highest possible degree of transparency.”
“Made & Managed in Austria”
Over a quarter of a billion euros are now being managed from the FTC’s home in Vienna. The fact that FTC refused to relocate its management business to a European low-tax domicile may seem unusual to connoisseurs of the alternative investment industry – Pomeranz explains: “Our analysis showed that consolidating at a single location was a positive move on balance. I must confess that there was a touch of patriotism involved as well here. FTC is now entitled to use the label ‘Made & Managed in Austria” – and in our biggest product segment at least, this is a rarity.”
FTC Futures Fund Classic: daily trading and share split
There are also innovations among the FTC products. The flagship fund FTC Futures Fund Classic (ISIN: LU0082076828) will be available from February for the first time for subscription daily at the closing rate (previously possible weekly). FTC is also waiving the notice period of one or more days which is standard with many investment funds. “As far as I know, this maximal liquidity is unique in this market segment,” notes Pomeranz. This very rapid processing of subscriptions is possible because the futures exchanges on which the fund invests are themselves extremely liquid. In addition, there is the almost universal electronic order execution, which makes it possible to execute inflows and outflows or reallocations in the fund capital even faster.
At the same time as switching to daily trading, the FTC Futures Fund Classic is lowering its investment minimum from EUR 10,000 to EUR 5,000, with subsequent subscription possible from EUR 1,000. In addition the FTC Classic is carrying out a 1-for-100 share split on 1 February (the individual unit will then have a double-digit euro price). Pomeranz explains: “These changes in dealing terms are naturally particularly appealing to private investors with smaller incomes, which reflects the growing importance of our marketing partners in the private client business.”
FTC offers a macro strategy: a product innovation for professional investors
In mid-February, FTC Capital is planning to launch a new fund with a macro focus, initially restricted to professional investors. It will be designed for low-volatility alpha strategies, in response to the growing desire of institutional investors. Like all other FTC Capital products, this strategy will also be based on various purely systematic and quantitative models. Currently, FTC is taking this new development on an international roadshow – the first goal has been set at EUR 50 million volume. Technical capacity is based on the use of over a dozen individual strategies which are independent and highly liquid, but will be way into the billion right from the start. Pomeranz: “We will also be continuously developing additional trading systems for this product, as well as for our trend following and stock strategies, which will make it possible to scale up the fund virtually without limit.
Risk disclaimer:
Every investment involves risk. Prices can rise and also fall. Past changes in price are not a reliable guide to future developments. FTC Futures Fund Dynamic is listed in USD, so that returns can rise or fall as a result of currency fluctuations.
All figures are given without any guarantee of accuracy and completeness. For more details on risks and costs of individual products, please refer to the relevant prospectuses. The current prospectuses published for the funds listed in the present document together with any changed or supplemented information are available without charge from FTC Capital GmbH. We will be happy to provide details of other offices where these can be obtained, together with the date of the latest prospectuses in Austria. The contents are for information only and are specifically neither an offer nor a recommendation to buy or sell. They do not replace individual investment or other advice. Any specific investment should be made after seeking personal advice.