Innovative gold note offered

Insch Capital Management together with Liechtensteinische Landesbank (Switzerland) and Prometeo launched Goldilocks: a gold note with currency enhancement as a new share class of Insch Insight, its British Virgin Islands-domiciled fund.

Goldilocks combines the inflation protection properties and upside potential of gold with a systematic means of capturing price movements in major currencies and offers capital protection.

Gold is regarded as a safe haven, an inflation hedge and a currency in its own right.

Goldilocks is a hybrid investment tool with 80% of the principal allocated to a portfolio of gold notes with a bullish view linked to the GOLDLNPM Index. This is combined with a 20% principal allocation to an actively managed currency enhancement program with 4:1 leverage.

The investor obtains full capital protection on the gold notes component and expects extra absolute returns from the options structure.

The currency component aims for consistent growth with maximum exposure of 10% of the principal to risk due to a trailing 50% stop-loss system. For this reason absent default by the gold note issuers, investors receive 90% capital protection.

Goldilocks will automatically redeem in five years. Before that date investors have monthly liquidity through the administrator or may dispose of their holding via a secondary market facility maintained by Prometeo which offers daily liquidity.

The banks issuing the gold notes are required to have a credit rating of A+ or better at time of issue.
Liechtensteinische Landesbank (Switzerland) is the depository and payment bank and carries an AAA rating.

Goldilocks will be open for subscription between October 26, 2009 and November 27, 2009. After that date no new subscriptions will be accepted.

Goldilocks is denominated in US dollars. Subsequent issues in euro and sterling are planned. Minimum initial investment is $200,000.