Mulder FX Forex strategy

Investment objective
The objective of Mulder FX is achieving positive, stable investment results that do not depend strongly of the direction of the financial markets as a whole. In this, fluctuations can occur that are higher than those of shares. Mulder FX aims to achieve an average absolute positive annual return of 40% or higher, after deduction of all costs.
Even though Mulder FX aims to achieve this annual return, it cannot be guaranteed that Mulder FX will actually achieve this return. Any investment bears risks and here is always a risk that an investor loses his entire invested capital. Past performance is no guarantee of future results.

Investment policy
Mulder FX believes that a good dispersal of risks is important and it has proven its merits in the recent turbulent times. When traditional forms of investment move into the same direction simultaneously, losses can be significant in economical tough times. Mulder Currency Fund does not focus on traditional investments, but (mainly) focuses on trade in currency pairs that always move in a certain relationship to each other. With that, the trade in currency pairs is a useful addition to current portfolios of investors in traditional investment forms. It provides more security when traditional markets move downwards.
Mulder FX further stresses that dispersal of risks does not mean that investors are not running the risk of losing their investment.
Mulder FX focuses on, but does not limit itself to, positions in the currencies of Australia, Canada, Euro zone, Japan, New Zealand, Norway, Sweden, Switzerland, United Kingdomand the United States of America.
The investment policy and investment restrictions mentioned hereafter can be changed by the manager from time to time.
In order to achieve the return objectives mentioned above, the fund will use several strategies.

Strategies

Absolute Valuation:
An analysis of regional differences in purchasing power.

Absolute Momentum:
Analysis based on a trend following methodology.

Absolute Carry:
Based on an analysis of differences in interest rates.

Absolute Resources:
Based on an analysis of raw materials and natural reserves as well as participation in world trade and the impact on currency as the result of that.

Leverage:
Trading with ‘leverage’ - or trading with margins – means that investors buy products with a higher underlying value than their capital would normally allow. Currency transactions are almost always traded on margins. Mulder Currency Fund uses a maximum leverage of 1/100. This means that the fund with an amount of € 10,000.- can trade in currency pairs up to an amount of € 1,000,000.-.

Long/Short:
This strategy means that currencies that are expected to rise in value can be bought (long position) and that currencies that are expected to loose value can be sold (short position)This method of investment in combination with leverage allows Mulder FX to invest with a larger percentage of the capital.

Event-Driven:
This strategy involves anticipating rate fluctuations caused by special events. This trading method means that short term positions are taken based on the market sentiment. Due to this strategy, the fund will have a lower volatility (motility) than that of the stock market, but in theory, a larger profit potential.

Stop Loss policy:
A stop loss policy is aimed at closing a position if a certain loss is achieved. This means that the losses of positions will always be limited, while profitable position can keep growing. The stop loss policy of Mulder FX means that a position will be automatically closed if it has a maximum loss of 1,000 ‘pips’. A pip is a unit in the currency trade and means ‘percentage in point’. If for instance the EUR/USD is demanded for 1.3614 and offered for 1.3617, the difference is 3 pips.

Quantitative investment restrictions
In financial markets, return and risks are still inseparable. To this end, the fund has integrated a number of quantitative restrictions to control the risks of the investment portfolio. These quantitative restrictions are the following:
The maximum loss amount of one currency pair may be 15% of the fund assets.
For instance: if the fund assets are 1,000,000.- a position in EUR/USD may lose a maximum of 150,000.-.
In addition to quantitative limitations, the performance of the securities is constantly assessed by means of advanced trade- and risk management systems, to be able to determine whether or not the operational and financial developments still justify the expected changes in the rate levels.