The MCM
Programme is a leveraged investment in the major
currency markets. The investments are controlled
by Arbiter Fund Managers Limited.
For clients with existing loans of any type, the
MCM Programme can be viewed as a debt reduction strategy
equivalent to switching loans between various major
currencies with the aim of reducing both the value
of the debt and the interest paid on that debt.
Simulation using the MCM Programme
It is possible to exactly simulate performance of
a debt reduction strategy using currency switching
by trading in a separate currency account and without
touching the debt. This methodology also has the
advantages of lower transaction costs, no set up
fees and a potentially more favourable tax treatment
than physically switching the loans between various
currencies.
The MCM Programme
The key to debt reduction using currency switching
is being in the right currencies at the right time.
In order to reduce debt, it is essential that the
debt is in a weakening currency.
The team at Arbiter Fund Managers Limited have been
trading currencies for over 15 years. The MCM
programme is a systematic approach which is designed to identify
trends in the currency markets. When the system identifies
a trend, currencies are traded. All trading points
are market dependent: there is no human influence
involved.
For more details on how MCM Programme is structured
please click here
Arbiter Fund Managers Limited does not provide loans
nor does it offer any advice on loans.
Risk Management
The MCM Programme is a high risk investment and is
not appropriate for all investors. However, MCM
has an extensive risk management policy which includes
diversification (no more than 50% of the nominal
assets are ever exposed to any one other currency),
and stop loss management: all trades have associated
stop losses to guard against extreme market events.
In addition, a global stop is placed at 5%, meaning
that should 5% ever be lost, all positions are
closed and the programme terminated. Note that
this equates to the margin requirement of 5%. Should
5% of the nominal amount be lost, then all of the
margin will be lost.
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Introduction
