Goldilocks is an innovative hybrid investment tool: 80% of the Principal is allocated to 5 Year Gold Notes, with a bullish view linked to the GOLDLNPM Index. This is combined with a 20% allocation to an actively managed Currency Enhancement Program. The investor obtains full capital protection on the Gold Notes component (80% of Principal) and seeks extra absolute returns from the price appreciation of gold. The currency component aims for consistent growth from the 20% invested allocation but only exposes a maximum of 10% of the Principal to risk due to a 50% Stop-Loss system. For this reason, the investment offers 90% capital protection.
The objectives of Goldilocks are: preservation of capital, known and limited risk, capital growth, portfolio diversification, and hedge against inflation. The rationale of the fund lies in the realization that the global investment environment has drastically changed, there is a need to diversify and to re-allocate assets, and there is on-going need for superior performance.