With nearly 10 billion USD in assets under management in a number of diverse strategies and an impressive list of institutional clients, Systematica has become a household name in quantitative investing.
DISCLAIMER
This communication is issued: (i) for all purposes, except for issue into the United States or issue to U.S. persons or issue into Australia or to Australia persons, by Systematica Investments Services Limited (“SISL”); (ii) only for the purposes of issue into the United States or issue to U.S. persons, by Systematica Investments Limited (“SIL”) acting solely in its capacity as general partner of Systematica Investments LP (“SILP”); and (iii) only for the purposes of issue into Australia or to Australian persons, by Systematica Investments Singapore Pte. Limited (“SISPL”). SISL is authorised and regulated by the Financial Conduct Authority of the United Kingdom (the “FCA”). SIL is registered with the U.S. Securities and Exchange Commission as an investment adviser under the U.S. Investment Advisers Act of 1940, as amended, and with the U.S. Commodity Futures Trading Commission as a commodity trading advisor and a commodity pool operator and is a member of the U.S. National Futures Association in such capacity. SIL as general partner of SILP is licensed and regulated by the Jersey Financial Services Commission (the “JFSC”) under the Financial Services (Jersey) Law 1998 (the “FSJL”) to conduct fund services business in and from within Jersey. The JFSC does not take any responsibility for the financial soundness of the Funds (as defined below) or for the correctness of any statements made or expressed herein. The JFSC is protected by the FSJL against liability arising from the discharge of its functions under that law. SISPL is exempt from the requirement to hold an Australian financial services licence in respect of the financial services it provides to ‘wholesale investors’ in Australia (as that term is defined in the Corporations Act 2001 (Cth)) and is regulated by the Monetary Authority of Singapore under the laws of Singapore which differ from Australian laws.
To the extent that this communication is issued by SISL, the following applies. This communication is issued in the United Kingdom by SISL on the basis that it is issued by an exempt person in accordance with Article 16 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005. None of the funds described herein or any other fund in respect of which SIL acts as investment manager (each, a “Fund” and together the “Funds”) is a recognised collective investment scheme for the purposes of the Financial Services and Markets Act 2000 of the United Kingdom (the “Act”). The promotion of each of the Funds and the distribution of this communication in the United Kingdom is accordingly restricted by law. This communication is being issued inside and outside the United Kingdom only to and/or is directed only at persons who are professional clients or eligible counterparties for the purposes of the FCA’s Conduct of Business Sourcebook. SISL is not acting for, or advising, investors in the Funds and is not responsible for providing such investors with the protections available under the UK regulatory system.
To the extent that this communication is issued by SIL, this communication has been prepared in accordance with the requirements of the FSJL and any other legislation, regulations and orders which may be applicable from time to time, together with the requirements of any relevant codes of practice and guidance issued by the JFSC from time to time (the “JFSC Regulatory Requirements”). The information contained herein is directed by SIL exclusively at persons who are professional clients or eligible counterparties for the purposes of the JFSC Regulatory Requirements, or, if to U.S. persons (as defined under Regulation S promulgated under the U.S. Securities Act of 1933, as amended (the “Securities Act”)), to U.S. persons who are both accredited investors (as defined under Regulation D promulgated under the Securities Act) and qualified purchasers (as defined in the U.S. Investment Company Act of 1940, as amended (the “Investment Company Act”)).
The interests in the Funds have not been filed with or approved or disapproved by any regulatory authority of the United States or any state thereof, nor has any such regulatory authority passed upon or endorsed the merits of an offering of a Fund or the accuracy or adequacy of this communication. Any representation to the contrary is unlawful.
PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN CONNECTION WITH ACCOUNTS OF QUALIFIED ELIGIBLE PERSONS, THIS BROCHURE OR ACCOUNT DOCUMENT IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE COMMISSION. THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN A TRADING PROGRAM OR UPON THE ADEQUACY OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE. CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED THIS TRADING PROGRAM OR THIS BROCHURE OR ACCOUNT DOCUMENT.
RECIPIENTS SHOULD NOTE THAT ANY FUNDS WHICH ARE DELAWARE LIMITED PARTNERSHIPS ARE ONLY AVAILABLE FOR INVESTMENT BY U.S. PERSONS, AS DEFINED UNDER REGULATION S PROMULGATED UNDER THE SECURITIES ACT; SUCH FUNDS ARE NOT BEING DISTRIBUTED, PROMOTED OR MARKETED IN ANY JURISDICTION OTHER THAN THE UNITED STATES.
The information contained herein is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any dissemination or other unauthorised use of this information by any person or entity is strictly prohibited. The distribution of information or documents contained in this communication may be further restricted by law. No action has been or will be taken by any of SISL, SIL, or any Fund to permit the possession or distribution of the information or documents contained in this communication in any jurisdiction (other than as expressly described herein) where action for that purpose may be required. Accordingly, such information or documents may not be distributed in any jurisdiction except under circumstances that will result in compliance with any applicable laws and regulations. Persons to whom such information or documents are communicated should inform themselves about and observe any such restrictions.
Information for investors in the European Economic Area (the “EEA”): This communication may only be distributed and the interests in the Funds may only be offered or placed in an EEA Member State to the extent that: (1) the Fund is permitted to be marketed to professional investors in the relevant EEA Member State in accordance with the Alternative Investment Fund Managers Directive (“AIFMD”) (as implemented into the local law/regulation of the relevant EEA Member State); or (2) this communication may be otherwise lawfully distributed and the interests in the Funds may lawfully be offered or placed in that EEA Member State (including at the initiative of the potential investor). In relation to each EEA Member State which, at the date of this communication, has not implemented AIFMD, this communication may only be distributed and the interests in the Funds may only be offered or placed to the extent that this communication may be lawfully distributed and the interests in the Funds may lawfully be offered or placed in that EEA Member State (including at the initiative of the potential investor).
Information for investors in Switzerland: Any distribution of interests in the Funds in Switzerland is exclusively made to, and directed at, qualified investors (“Qualified Investors”), as defined in the Swiss Collective Investment Schemes Act of 23 June 2006, as amended, and its implementing ordinance. Any Funds which are Delaware limited partnerships are not being distributed in Switzerland and are not available for subscription by investors in Switzerland. Accordingly, the Funds have not been and will not be registered with the Swiss Financial Market Supervisory Authority. If a Swiss representative has been appointed in respect of a Fund, offering materials relating to interests in that Fund may be made available to Qualified Investors in Switzerland solely by the Swiss representative and/or authorised distributors. Swiss representative (where appointed): Mont-Fort Funds AG, 63 Chemin Plan-Pra, 1936 Verbier, Switzerland. Swiss paying agent (where appointed): Neue Helvetische Bank AG, Seefeldstrasse 215, CH-8008 Zurich, Switzerland. In respect of the distribution of interests in the Funds in and from Switzerland, the place of performance and jurisdiction is the registered office of the Swiss representative.
Information for investors in Australia: To the extent that this document is issued by SISPL, this document has been prepared without taking into account the objectives, financial situation or needs of Australian persons who receive this document. Before making an investment decision, Australian persons who receive this document should consider the offering memorandum and assess whether the product is appropriate given your objectives, financial situation or needs. This document is only to be made available to ‘wholesale investors’ under the Corporations Act 2001 (Cth).
Information for investors in Singapore: The Funds are not authorised or recognised by the Monetary Authority of Singapore (“MAS”) and interests in any Funds are not allowed to be offered to the retail public. This communication and any other communication or material in connection with the offer, sale, invitation for subscription or purchase of interests in any Fund may not be circulated or distributed, nor may interests in any Fund be offered, sold or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to the public or any member of the public in Singapore other than a person who is an accredited investor or an institutional investor (each as defined under the Securities and Futures Act (Chapter 289) of Singapore) (“SFA”) or unless otherwise permitted under any applicable exemption. This communication and any other communication or material issued in connection with the offer or sale is not a prospectus as defined in the SFA and has not been registered as a prospectus with the MAS. Accordingly, statutory liability under the SFA in relation to the content of prospectuses would not apply. Each prospective investor should consider carefully whether the investment is suitable for him.
SIL, as general partner of SILP (SIL together with SILP and each of their subsidiaries and affiliates, the “Systematica Group”), was appointed as investment manager of the Funds on 1 January 2015 upon the “spin-out” of the Systematica Group. Any Fund performance information in this communication relating to dates prior to 1 January 2015 illustrates the performance of the Funds whilst its predecessors were appointed as investment manager to the Funds. There is no guarantee that past performance of the Funds will be replicated under the management of the Systematica Group.
This communication is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. Potential investors in the Funds should seek their own independent financial, tax, legal and other advice. This communication has been provided to you for informational purposes only and may not be relied upon by you in evaluating the merits of investing in any securities or interests referred to herein or for any other purpose. This communication is not intended as and is not to be taken as an offer or solicitation with respect to the purchase or sale of any security or interest, nor does it constitute an offer or solicitation in any jurisdiction, including those in which such an offer or solicitation is not authorised or to any person to whom it is unlawful to make such a solicitation or offer. Before making any investment decision you should obtain independent legal, tax, accounting or other professional advice, as appropriate, none of which is offered to you by SIL, SISL or any of their affiliates. None of SIL, SISL or any of their affiliates accepts any duty of care to you in relation to any investment in the Funds.
The terms of investment in any of the Funds described herein or any other Fund are solely as set out in the relevant Fund’s prospectus or private placement memorandum (including any supplements thereto), as the case may be, application forms and/or memorandum and articles of association or limited partnership agreement, as the case may be (collectively, the “Fund Documents“). Before acquiring an interest in any Fund, each prospective investor is required to confirm that it has carefully reviewed the various risks of an investment in the Fund, as set out in the Fund Documents, and is required to acknowledge and agree to the existence of any actual and potential conflicts of interests described in the Fund Documents and waive, to the fullest extent permitted by any applicable law, any claim with respect to the existence of any such conflicts.
This communication may contain simulated performance results achieved by means of the retroactive application of the adviser’s investment methodology, or the real-time application of a hypothetical capital allocation to such strategy. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any particular trading program will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
Although the information in this communication is believed to be materially correct as at the date of issue, no representation or warranty is given as to the accuracy of any of the information provided. Furthermore no representation or warranty is given in respect of the correctness of the information contained herein as at any future date. Certain information included in this communication is based on information obtained from third-party sources considered to be reliable. Any projections or analysis provided to assist the recipient of this communication in evaluating the matters described herein may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results. Accordingly, any projections or analysis should not be viewed as factual and should not be relied upon as an accurate prediction of future results. Furthermore, to the extent permitted by law, SISL, SIL, SILP, the Funds, and their affiliates, agents, service providers and professional advisers assume no liability or responsibility and owe no duty of care for any consequences of any person acting or refraining to act in reliance on the information contained in this communication or for any decision based on it.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. The actual performance realised by any given investor will depend on numerous factors and circumstances. This communication may include returns for various indices. These indices are not intended to be direct benchmarks for a particular Fund, nor are they intended to be indicative of the type of assets in which a particular Fund may invest. The assets invested in by any of the Funds will likely be materially different from the assets underlying these indices, and will likely have a significantly different risk profile. Target returns, volatility and Sharpe ratio figures quoted are targets only and are based over the long term on the performance projections of the investment strategy and market interest rates at time of modelling and therefore may change.
Interests in the Funds and other investments and investment services to which this communication relates are only available to the persons referred to in the relevant paragraphs above, and other persons should not act on the information contained herein.
Any decision to purchase securities or interests with respect to any of the Funds described herein must be based solely upon the information contained in the Fund Documents, which must be received and reviewed prior to any investment decision. Any person subscribing for an investment must be able to bear the risks involved (including the risk of a total loss of capital) and must meet the suitability requirements relating to such investments. Some or all alternative investment programs may not be suitable for certain investors.
Among the risks we wish to call to the particular attention of prospective investors are the following: (1) each Fund’s investment programme is speculative in nature and entails substantial risks; (2) the investments of each Fund may be subject to sudden and large falls in price or value and there could be a large loss upon realisation of a holder’s investment, which could equal the total amount invested; (3) as there is no recognised market for many of the investments of the Funds, it may be difficult or impossible for a Fund to obtain complete and/or reliable information about the value of such investments or the extent of the risks to which such investments are exposed; (4) the use of a single adviser group could mean a lack of diversification and, consequently, higher risk, and may depend upon the services of key personnel, and if certain or all of them become unavailable, the Funds may prematurely terminate; (5) an investment in a Fund is illiquid and there is no secondary market for the sale of interests in a Fund and none is expected to develop; (6) there are restrictions on transferring interests in a Fund; (7) SIL and its affiliates may receive performance-based compensation, which may result in riskier investments, and the Funds’ fees may offset trading profits; (8) the Funds are subject to certain conflicts of interest; (9) certain securities and instruments in which the Funds may invest can be highly volatile; (10) the Funds may be leveraged; (11) a substantial portion of the trades executed for the Funds take place on non-U.S. exchanges; (12) changes in rates of exchange may also have an adverse effect on the value, price or income of the investments of each Fund; and (13) the Funds are not mutual funds pursuant to and therefore not subject to regulation under the Investment Company Act.
DISCLAIMER
This communication is issued: (i) for all purposes, except for issue into the United States or issue to U.S. persons or issue into Australia or to Australia persons, by Systematica Investments Services Limited (“SISL”); (ii) only for the purposes of issue into the United States or issue to U.S. persons, by Systematica Investments Limited (“SIL”) acting solely in its capacity as general partner of Systematica Investments LP (“SILP”); and (iii) only for the purposes of issue into Australia or to Australian persons, by Systematica Investments Singapore Pte. Limited (“SISPL”). SISL is authorised and regulated by the Financial Conduct Authority of the United Kingdom (the “FCA”). SIL is registered with the U.S. Securities and Exchange Commission as an investment adviser under the U.S. Investment Advisers Act of 1940, as amended, and with the U.S. Commodity Futures Trading Commission as a commodity trading advisor and a commodity pool operator and is a member of the U.S. National Futures Association in such capacity. SIL as general partner of SILP is licensed and regulated by the Jersey Financial Services Commission (the “JFSC”) under the Financial Services (Jersey) Law 1998 (the “FSJL”) to conduct fund services business in and from within Jersey. The JFSC does not take any responsibility for the financial soundness of the Funds (as defined below) or for the correctness of any statements made or expressed herein. The JFSC is protected by the FSJL against liability arising from the discharge of its functions under that law. SISPL is exempt from the requirement to hold an Australian financial services licence in respect of the financial services it provides to ‘wholesale investors’ in Australia (as that term is defined in the Corporations Act 2001 (Cth)) and is regulated by the Monetary Authority of Singapore under the laws of Singapore which differ from Australian laws.
To the extent that this communication is issued by SISL, the following applies. This communication is issued in the United Kingdom by SISL on the basis that it is issued by an exempt person in accordance with Article 16 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005. None of the funds described herein or any other fund in respect of which SIL acts as investment manager (each, a “Fund” and together the “Funds”) is a recognised collective investment scheme for the purposes of the Financial Services and Markets Act 2000 of the United Kingdom (the “Act”). The promotion of each of the Funds and the distribution of this communication in the United Kingdom is accordingly restricted by law. This communication is being issued inside and outside the United Kingdom only to and/or is directed only at persons who are professional clients or eligible counterparties for the purposes of the FCA’s Conduct of Business Sourcebook. SISL is not acting for, or advising, investors in the Funds and is not responsible for providing such investors with the protections available under the UK regulatory system.
To the extent that this communication is issued by SIL, this communication has been prepared in accordance with the requirements of the FSJL and any other legislation, regulations and orders which may be applicable from time to time, together with the requirements of any relevant codes of practice and guidance issued by the JFSC from time to time (the “JFSC Regulatory Requirements”). The information contained herein is directed by SIL exclusively at persons who are professional clients or eligible counterparties for the purposes of the JFSC Regulatory Requirements, or, if to U.S. persons (as defined under Regulation S promulgated under the U.S. Securities Act of 1933, as amended (the “Securities Act”)), to U.S. persons who are both accredited investors (as defined under Regulation D promulgated under the Securities Act) and qualified purchasers (as defined in the U.S. Investment Company Act of 1940, as amended (the “Investment Company Act”)).
The interests in the Funds have not been filed with or approved or disapproved by any regulatory authority of the United States or any state thereof, nor has any such regulatory authority passed upon or endorsed the merits of an offering of a Fund or the accuracy or adequacy of this communication. Any representation to the contrary is unlawful.
PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN CONNECTION WITH ACCOUNTS OF QUALIFIED ELIGIBLE PERSONS, THIS BROCHURE OR ACCOUNT DOCUMENT IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE COMMISSION. THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN A TRADING PROGRAM OR UPON THE ADEQUACY OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE. CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED THIS TRADING PROGRAM OR THIS BROCHURE OR ACCOUNT DOCUMENT.
RECIPIENTS SHOULD NOTE THAT ANY FUNDS WHICH ARE DELAWARE LIMITED PARTNERSHIPS ARE ONLY AVAILABLE FOR INVESTMENT BY U.S. PERSONS, AS DEFINED UNDER REGULATION S PROMULGATED UNDER THE SECURITIES ACT; SUCH FUNDS ARE NOT BEING DISTRIBUTED, PROMOTED OR MARKETED IN ANY JURISDICTION OTHER THAN THE UNITED STATES.
The information contained herein is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any dissemination or other unauthorised use of this information by any person or entity is strictly prohibited. The distribution of information or documents contained in this communication may be further restricted by law. No action has been or will be taken by any of SISL, SIL, or any Fund to permit the possession or distribution of the information or documents contained in this communication in any jurisdiction (other than as expressly described herein) where action for that purpose may be required. Accordingly, such information or documents may not be distributed in any jurisdiction except under circumstances that will result in compliance with any applicable laws and regulations. Persons to whom such information or documents are communicated should inform themselves about and observe any such restrictions.
Information for investors in the European Economic Area (the “EEA”): This communication may only be distributed and the interests in the Funds may only be offered or placed in an EEA Member State to the extent that: (1) the Fund is permitted to be marketed to professional investors in the relevant EEA Member State in accordance with the Alternative Investment Fund Managers Directive (“AIFMD”) (as implemented into the local law/regulation of the relevant EEA Member State); or (2) this communication may be otherwise lawfully distributed and the interests in the Funds may lawfully be offered or placed in that EEA Member State (including at the initiative of the potential investor). In relation to each EEA Member State which, at the date of this communication, has not implemented AIFMD, this communication may only be distributed and the interests in the Funds may only be offered or placed to the extent that this communication may be lawfully distributed and the interests in the Funds may lawfully be offered or placed in that EEA Member State (including at the initiative of the potential investor).
Information for investors in Switzerland: Any distribution of interests in the Funds in Switzerland is exclusively made to, and directed at, qualified investors (“Qualified Investors”), as defined in the Swiss Collective Investment Schemes Act of 23 June 2006, as amended, and its implementing ordinance. Any Funds which are Delaware limited partnerships are not being distributed in Switzerland and are not available for subscription by investors in Switzerland. Accordingly, the Funds have not been and will not be registered with the Swiss Financial Market Supervisory Authority. If a Swiss representative has been appointed in respect of a Fund, offering materials relating to interests in that Fund may be made available to Qualified Investors in Switzerland solely by the Swiss representative and/or authorised distributors. Swiss representative (where appointed): Mont-Fort Funds AG, 63 Chemin Plan-Pra, 1936 Verbier, Switzerland. Swiss paying agent (where appointed): Neue Helvetische Bank AG, Seefeldstrasse 215, CH-8008 Zurich, Switzerland. In respect of the distribution of interests in the Funds in and from Switzerland, the place of performance and jurisdiction is the registered office of the Swiss representative.
Information for investors in Australia: To the extent that this document is issued by SISPL, this document has been prepared without taking into account the objectives, financial situation or needs of Australian persons who receive this document. Before making an investment decision, Australian persons who receive this document should consider the offering memorandum and assess whether the product is appropriate given your objectives, financial situation or needs. This document is only to be made available to ‘wholesale investors’ under the Corporations Act 2001 (Cth).
Information for investors in Singapore: The Funds are not authorised or recognised by the Monetary Authority of Singapore (“MAS”) and interests in any Funds are not allowed to be offered to the retail public. This communication and any other communication or material in connection with the offer, sale, invitation for subscription or purchase of interests in any Fund may not be circulated or distributed, nor may interests in any Fund be offered, sold or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to the public or any member of the public in Singapore other than a person who is an accredited investor or an institutional investor (each as defined under the Securities and Futures Act (Chapter 289) of Singapore) (“SFA”) or unless otherwise permitted under any applicable exemption. This communication and any other communication or material issued in connection with the offer or sale is not a prospectus as defined in the SFA and has not been registered as a prospectus with the MAS. Accordingly, statutory liability under the SFA in relation to the content of prospectuses would not apply. Each prospective investor should consider carefully whether the investment is suitable for him.
SIL, as general partner of SILP (SIL together with SILP and each of their subsidiaries and affiliates, the “Systematica Group”), was appointed as investment manager of the Funds on 1 January 2015 upon the “spin-out” of the Systematica Group. Any Fund performance information in this communication relating to dates prior to 1 January 2015 illustrates the performance of the Funds whilst its predecessors were appointed as investment manager to the Funds. There is no guarantee that past performance of the Funds will be replicated under the management of the Systematica Group.
This communication is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. Potential investors in the Funds should seek their own independent financial, tax, legal and other advice. This communication has been provided to you for informational purposes only and may not be relied upon by you in evaluating the merits of investing in any securities or interests referred to herein or for any other purpose. This communication is not intended as and is not to be taken as an offer or solicitation with respect to the purchase or sale of any security or interest, nor does it constitute an offer or solicitation in any jurisdiction, including those in which such an offer or solicitation is not authorised or to any person to whom it is unlawful to make such a solicitation or offer. Before making any investment decision you should obtain independent legal, tax, accounting or other professional advice, as appropriate, none of which is offered to you by SIL, SISL or any of their affiliates. None of SIL, SISL or any of their affiliates accepts any duty of care to you in relation to any investment in the Funds.
The terms of investment in any of the Funds described herein or any other Fund are solely as set out in the relevant Fund’s prospectus or private placement memorandum (including any supplements thereto), as the case may be, application forms and/or memorandum and articles of association or limited partnership agreement, as the case may be (collectively, the “Fund Documents“). Before acquiring an interest in any Fund, each prospective investor is required to confirm that it has carefully reviewed the various risks of an investment in the Fund, as set out in the Fund Documents, and is required to acknowledge and agree to the existence of any actual and potential conflicts of interests described in the Fund Documents and waive, to the fullest extent permitted by any applicable law, any claim with respect to the existence of any such conflicts.
This communication may contain simulated performance results achieved by means of the retroactive application of the adviser’s investment methodology, or the real-time application of a hypothetical capital allocation to such strategy. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any particular trading program will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
Although the information in this communication is believed to be materially correct as at the date of issue, no representation or warranty is given as to the accuracy of any of the information provided. Furthermore no representation or warranty is given in respect of the correctness of the information contained herein as at any future date. Certain information included in this communication is based on information obtained from third-party sources considered to be reliable. Any projections or analysis provided to assist the recipient of this communication in evaluating the matters described herein may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results. Accordingly, any projections or analysis should not be viewed as factual and should not be relied upon as an accurate prediction of future results. Furthermore, to the extent permitted by law, SISL, SIL, SILP, the Funds, and their affiliates, agents, service providers and professional advisers assume no liability or responsibility and owe no duty of care for any consequences of any person acting or refraining to act in reliance on the information contained in this communication or for any decision based on it.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. The actual performance realised by any given investor will depend on numerous factors and circumstances. This communication may include returns for various indices. These indices are not intended to be direct benchmarks for a particular Fund, nor are they intended to be indicative of the type of assets in which a particular Fund may invest. The assets invested in by any of the Funds will likely be materially different from the assets underlying these indices, and will likely have a significantly different risk profile. Target returns, volatility and Sharpe ratio figures quoted are targets only and are based over the long term on the performance projections of the investment strategy and market interest rates at time of modelling and therefore may change.
Interests in the Funds and other investments and investment services to which this communication relates are only available to the persons referred to in the relevant paragraphs above, and other persons should not act on the information contained herein.
Any decision to purchase securities or interests with respect to any of the Funds described herein must be based solely upon the information contained in the Fund Documents, which must be received and reviewed prior to any investment decision. Any person subscribing for an investment must be able to bear the risks involved (including the risk of a total loss of capital) and must meet the suitability requirements relating to such investments. Some or all alternative investment programs may not be suitable for certain investors.
Among the risks we wish to call to the particular attention of prospective investors are the following: (1) each Fund’s investment programme is speculative in nature and entails substantial risks; (2) the investments of each Fund may be subject to sudden and large falls in price or value and there could be a large loss upon realisation of a holder’s investment, which could equal the total amount invested; (3) as there is no recognised market for many of the investments of the Funds, it may be difficult or impossible for a Fund to obtain complete and/or reliable information about the value of such investments or the extent of the risks to which such investments are exposed; (4) the use of a single adviser group could mean a lack of diversification and, consequently, higher risk, and may depend upon the services of key personnel, and if certain or all of them become unavailable, the Funds may prematurely terminate; (5) an investment in a Fund is illiquid and there is no secondary market for the sale of interests in a Fund and none is expected to develop; (6) there are restrictions on transferring interests in a Fund; (7) SIL and its affiliates may receive performance-based compensation, which may result in riskier investments, and the Funds’ fees may offset trading profits; (8) the Funds are subject to certain conflicts of interest; (9) certain securities and instruments in which the Funds may invest can be highly volatile; (10) the Funds may be leveraged; (11) a substantial portion of the trades executed for the Funds take place on non-U.S. exchanges; (12) changes in rates of exchange may also have an adverse effect on the value, price or income of the investments of each Fund; and (13) the Funds are not mutual funds pursuant to and therefore not subject to regulation under the Investment Company Act.
DISCLOSURE
Deutsche Bank Securities Inc.
On August 26, 2004, in connection with the 2002 industry-wide governmental and regulatory investigations into research and analysts practices, Deutsche Bank Securities Inc. (“DBSI”) reached a settlement agreement with the Securities and Exchange Commission, the National Association of Securities Dealers, the New York Stock Exchange and the New York Attorney General, and with other state regulators arising from an investigation of research analyst independence. Under the terms of the settlement, DBSI agreed to pay $87.5 million.
On June 3, 2009, DBSI settled proceedings with the U.S. Securities and Exchange Commission, the New Jersey Department of Securities and the New York Attorney General in connection with various claims under the federal securities laws and state common law arising out of the sale of auction rate preferred securities and auction rate securities (together, “ARS”). Under the terms of the settlements, DBSI was required to, among other things, offer to buy back ARS purchased by certain customers from DBSI, reimburse certain customers who took out loans secured by ARS and compensate eligible customers who sold their ARS below par value. In connection with the settlements, a number of state securities commissions issued final orders against DBSI.
Stifel, Nicolaus & Company Inc
On December 6, 2016, a final judgment (“Judgment”) was entered against Stifel, Nicolaus & Company, Inc. (“Stifel Nicolaus”) by the United States District Court for the Eastern District of Wisconsin (Civil Action No. 2:11-cv-00755) resolving a civil lawsuit filed by the U.S. Securities & Exchange Commission (the “SEC”) in 2011 involving violations of several antifraud provisions of the federal securities laws in connection with the sale of synthetic collateralized debt obligations (“CDOs”) to five Wisconsin school districts in 2006.
As a result of the Order:
– Stifel is required to cease and desist from committing or causing any violations and any future violations of Section 17(a)(2) and 17(a)(3) of the Securities Act; and
– Stifel and David Noack, a former employee, are jointly liable to pay disgorgement and prejudgment interest of $2.44 million. Stifel was also required to pay a civil penalty of $22.5 million. The Judgment also required Stifel to distribute $12.5 million of the ordered disgorgement and civil penalty to the school districts involved in this matter.
Simultaneously with the entry of the Judgment, the SEC issued an order granting Stifel waivers from the application of the disqualification provisions of Rule 506(d)(1)(iv) of Regulation D and Rule 262(b)(2) of Regulation A under the Securities Act (the “Securities Act Waivers”) and a no-action letter granting relief from the disqualification provisions of Rule 206(4)-3 under the Advisers Act (the “Advisers Act Waiver”). The SEC also exempted Choice Financial Partners, Inc., 1919 Investment Counsel, LLC and Ziegler Capital Management, LLC (“Stifel Affiliates”) from section 9(a) of the Investment Company Act of 1940 (the “Investment Company Act Exemption”) through the issuance of a temporary order. Unless the SEC orders a hearing, a permanent order will be issued in 2017 and will be posted to the SEC’s EDGAR database.
Copies of the Judgment, Securities Act Waiver, Advisers Act Waiver and ’40 Act Exemption are available on the SEC’s website:
– Judgment: https://www.sec.gov/litigation/litreleases/2016/lr23700-final-judgment.pdf
– Advisers Act Waiver: https://www.sec.gov/divisions/investment/noaction/2016/stifelnicolaus-120616-206(4).htm
– Securities Act Waivers: https://www.sec.gov/rules/other/2016/33-10263.pdf
– Investment Company Act Exemption: https://www.sec.gov/Archives/edgar/data/948905/999999999716027528/filename1.pdf
UBS Financial Services Inc.
(Acting as Solicitor/Distributor to a Third Party Private Investment Fund)
Disclosure Statement under Rule 506(d)
1. Date of Action: August 22, 2011
Entity: UBS Financial Services, Inc.
Brought By: New Hampshire Bureau of Securities Regulation
Allegations: UBS sold Lehman Structured Products to clients (specifically referencing three particular investors), who were not
made aware of the risks of these products and failed to inform clients of Lehman’s financial condition prior to Lehman’s
bankruptcy. It was also alleged that the firm’s recommendations to a small number of New Hampshire residents to purchase
Lehman Structured Products were unsuitable.
Disposition: Consent Order
Administrative fine of $100,000; Investigation costs of $200,000; Administrative payment of $700,000
2. Date of Action: May 4, 2011
Brought By: SEC, Internal Revenue Service (IRS), Dept. of Justice (DOJ), State Attorney General of 24 States
UBS AG and UBS Financial Services Inc. reached settlements with the SEC, the IRS, the DOJ and a group of State Attorneys
General regarding investigations into the conduct of certain former employees in UBS Financial Services’ former municipal
reinvestment and derivatives group from 2001 to 2006. Allegations included violations of: Section 15(c)(1)(A) of the Securities
Exchange Act of 1934, Section 1 of the Sherman Act, and IRS regulations in bidding practices and representations made
involving the investment of proceeds of municipal securities transactions.
Disposition: SEC: Waiver and Consent to Final Judgment enjoining UBS from violating Section 15(c) of the Act, disgorgement
of profits, interest and civil penalty; IRS: Closing Agreement; DOJ: Non- prosecution Agreement
SEC: Disgorgement of $9,606,543 plus interest of $5,100,637 and civil penalty of $32,500,000; IRS: penalty of $18 million
and restitution of 4.3 million; States: $70.8 million plus $20 million credited from the SEC settlement
3. Date of Action: Dec. 22, 2008
Brought By: Securities and Exchange Commission (SEC), Massachusetts Securities Division, New York State Attorney General
(NYAG) and other members of the North American Securities Administrators Association.
Auction Rate Securities (ARS): UBS is permanently enjoined from violations of the broker/dealer anti-fraud provisions.
Allegations: Violations of 34 Act Section 15(c) regarding the marketing and sale of Auction Rate Securities.
Disposition: Cease & Desist Injunction; Civil Penalty; Consent Judgment
Cease & Desist, and Fines in varying amounts currently being paid to all 50 states. UBS Financial Services Inc. (together with
UBS Securities LLC) agreed to pay a fine of $150 million ($75 million to the NYAG and $75 million allocated to the remaining
states).
4. Date of Action: July 16, 2007
Entity: UBS Financial Services
Brought By: Attorney General State of NY
Allegations: Non-discretionary fee-based brokerage accounts offered by UBS were unsuitable for certain clients and
fees/commissions were higher than non- fee based accounts
Disposition: Remediation to Customers & Penalty to State of NY
Remediation: $21,300,000; Penalty: $2,000,000
5. Date of Action: March 7, 2005
Entity: UBS Financial Services
Brought By: State of Illinois
Allegations: Failure to provide investors with accurate account statements re: callable CD’s and failure to supervise.
Disposition: Fine
Fine: $95,000
6. Date of Action: April 28, 2003 – March 19, 2004
Entity: UBS Financial Services and affiliates
Brought By: Secretary of State of 47 States and Washington D.C.
Allegations: Violation of Securities Act regulations regarding research practices and conflicts of interest
arising from those practices. Violations of Section 17(b) of the Securities Act of 1933, NYSE Rules 476(a)(6), 401, 472,
476(A)(6) and 342, NASD Rules 2210 and 2110 and state securities laws
Disposition: Cease & Desist, Fine, Penalty, Disgorgement, Investor Education.
Details: UBS Financial Services Inc. (together with UBS Securities LLC) paid a total of $80M (allocated among the states),
which includes $25M penalty, $25M as disgorgement, $25M to be used for procurement of independent research and $5M
for investor education. Fines varied by State.
7. Date of Action: March 2007
Entity: Individual Financial Advisor
Brought By: State of New York Department of Insurance
Disposition: Final Order in connection with violations of sections 2123 of the NY Insurance Law and Department Regulation
60 (11 NYCRR 51.5).
8. Date of Action: June 9, 2008
Entity: Individual Financial Advisor
Brought By: State of New York Department of Insurance
Disposition: Final Order issued in connection with violations of sections 2123 of the NY Insurance Law and Department
Regulation 60 (11 NYCRR 51.5).
9. Date of Action: May 12, 2000
Entity: Individual Financial Advisor
Brought By: Ohio Division of Securities
Details: The Ohio Division of Securities issued a final order to deny the Financial Advisor’s application for a securities sales
person license.
10. Date of Action: February 2, 2010
Entity: Individual Financial Advisor
Brought By: State of Nevada
Details: State of Nevada issued Final Order revoking the Financial Advisor’s license to act as a sales representative on Feb. 2,
2010.
EU GENERAL DATA PROTECTION REGULATION (“GDPR”)
PRIVACY NOTICE
EU GENERAL DATA PROTECTION REGULATION MATTERS
With effect from 25 May 2018, the EU General Data Protection Regulation (Regulation (EU) 2016/679) (together with applicable implementing laws, “GDPR”) will apply, to the extent relevant, to the processing of personal data by each of Systematica Investments Services Limited (“SISL”), Systematica Investments Limited (“SIL”), Systematica Investments LP, Systematica Investments Holdings Limited, Systematica Investments Guernsey LP, Systematica Investments GP Limited, Systematica Investments US LLC and Systematica Investments Singapore Pte. Ltd (the “Systematica Entities”) in the course of their businesses, and certain other persons. This notice sets out information relating to those activities.
The Systematica Entities
The Systematica Entities are controllers of personal data for the purposes of the GDPR and will, in the course of each Systematica Entity’s business, process personal data. Information regarding such processing is set out herein.
Any person seeking information with respect to control or processing of personal data by any of the Systematica Entities or seeking to exercise any rights afforded to them under GDPR should contact the compliance department of Systematica Investments Services Limited at dataprotectionofficer@systematica.com.
Under GDPR, any person wishing to is entitled to make a complaint with respect to any of the Systematica Entities’ control or processing of personal data directly to the relevant supervisory authority for data protection issues. In the UK this is the Information Commissioner’s Office (“ICO”). Contact details for the ICO may be found at www.ico.org.uk.
The policies and procedures adopted by the Systematica Entities with respect to the control or processing of personal data may be amended from time to time. Similarly, the purposes for which the Systematica Entities may control or process personal data may change from time to time. If any changes would require a material amendment to the information set out herein, details of such changes will be made available in the current version of this document from time to time.
Summary of Personal Data
For the purposes of GDPR, personal data means any information about an individual from which that person can be identified. In the course of its business, Systematica Entities may collect, use, store and transfer personal information from individuals that are employees, directors, officers or other representatives or agents of market counterparties, professional services and other service providers, trade associations, public bodies and other entities or undertakings. Such personal data is typically limited in scope, and includes, for example, the name and contact details of such individuals, as well as some technical data (such as internet protocol addresses), usage data and information about marketing and communication preferences.
In addition, the Systematica Entities may also use, store and transfer personal information concerning former applicants for positions of employment at or membership of, or former employees or members of, the Systematica Entities. Such personal data may include some or all of the following: name and contact details, information about employment and educational history, performance records, salary data, references, account details, identification data, tax information, social security numbers and information regarding immigration status. The Systematica Entities will endeavour contact those former job applicants or former employees if the personal data processed in relation to the same is material in order to inform them of the continued processing of their personal data, the nature of that processing, the lawful basis upon which the processing is taking place, and their rights under the GDPR with respect to such processing.
Collection of Personal Data
The Systematica Entities may collect personal data through a range of means. These may include direct interactions (where a person provides personal data to the relevant Systematica Entity through correspondence or other direct methods of communication), through third-party service providers (for example, recruitment agents) or publicly available sources (where a Systematica Entity receives personal data through a publicly available source such as a website or publicly-available registry).
Use of Personal Data
The Systematica Entities will only process personal data in circumstances where they have established a lawful basis under GDPR to do so. These circumstances include where the processing of the relevant data relates to a legitimate interest of the relevant Systematica Entity, further described below. In such circumstances the Systematica Entities will have established that the processing is necessary for the relevant purpose, and not inconsistent with the interests, rights or freedoms of a relevant data subject.
In accordance with the above, each Systematica Entity has determined that the lawful bases for its processing of personal data are the legitimate interests of the relevant Systematica Entity to undertake activities necessary and ancillary to the carrying on of an investment management business, including where necessary for the purposes of the relevant Systematica Entity carrying out its activities relating to any fund, vehicle or account in respect of which a Systematica Entity acts as investment manager, sub-investment manager, investment adviser or sub-investment adviser (the “Funds”), the administration of the Funds, the investment activities of the Funds, otherwise in furtherance of any contract entered into with respect to the activities of the Funds, to exercise and comply with the relevant Fund’s or Systematica Entity’s rights and obligations at law or under regulation where such obligations are not set out under the laws of any member state of the European Economic Area (“EEA”), to establish, exercise or defend legal claims and in order to protect and enforce its (or another person’s) rights, property, or safety, or to assist others to do the same, and in order to provide information about its services and any investment products it offers.
In addition, each Systematica Entity may also control or process personal data where necessary to comply with legal or regulatory obligations applicable to them under the laws of the European Union or any member state of the EEA, or in order to give effect to a contract, or to take necessary pre-contractual steps with a view to potentially entering into a contract (including in its capacity as an employer or a prospective employer), to the extent applicable.
Systematica Entities may from time to time control or process personal data for the purposes of operating their business, entering into contractual arrangements in the context of their investment management business, including in respect of the Funds marketing, and advertising the Funds and/or other investment vehicles and/or services related to the Systematica Entities. Any person subject to GDPR who does not wish their personal data to be processed for marketing purposes may opt out of such processing by notifying the compliance department of SISL at dataprotectionofficer@systematica.com.
Any Systematica Entity will only use personal data for the purposes that it has been collected for, unless they reasonably consider that they need to use it for another reason and that reason is compatible with the original purpose of the control or processing. Any person requiring information with respect to any additional purpose for which personal data may be controlled or processed may obtain such information from the compliance department of SISL. If a Systematica Entity needs to control or process personal data for an unrelated purpose, the relevant Systematica Entity will use its reasonable endeavours to notify affected persons and to explain the basis on which they are permitted to undertake the same.
Disclosure of Personal Data
Each Systematica Entity may share personal data with certain third parties for the purposes set out above. The relevant third parties with whom such personal data may be shared include entities appointed to provide services to the Funds, the relevant Systematica Entity and their affiliates, and regulatory, legal and tax authorities. Further details of the third parties with whom personal data may be shared are available on request from the compliance department of SISL. Wherever possible, personal data will only be disclosed by a Systematica Entity to a third party in circumstances where that third party has agreed to respect the security of personal data and treat it in accordance with applicable law. The Systematica Entities will seek to ensure that third parties to whom any personal data may be disclosed will not use personal data for their own purposes and only process personal data for specified purposes and otherwise in accordance with the instructions of the relevant Systematica Entity and/or with the GDPR.
Transfer of Personal Data outside the European Economic Area
The activities of the Systematica Entities are such that it may be necessary for personal data to be transferred and/or processed outside the EEA.
In circumstances where a Systematica Entity transfers personal data outside the EEA, they will seek to ensure a similar degree of protection is afforded to it by ensuring that personal data is generally transferred only to persons in countries outside the EEA in one of the following circumstances.
To persons and undertakings in countries that have been deemed to provide an adequate level of protection for personal data by the European Commission.
To persons and undertakings to whom the transfer of such personal data is made pursuant to a contract that is compliant with the model contracts for the transfer of personal data to third countries from time to time approved by the European Commission.
To persons and undertakings based in the United States if they are part of the EU-U.S. Privacy Shield which requires them to provide similar protection to personal data shared between Europe and the United States.
Further information on specific mechanisms utilised by Systematica Entities transferring personal data outside the EEA and the countries to which such transfer may be made (which may include, but are not limited to The Bailiwick of Jersey, the Bailiwick of Guernsey, Switzerland, Singapore, the Cayman Islands and the United States) may be obtained from the compliance department of SISL upon request.
Data Retention
Each Systematica Entity will retain personal data for as long as necessary to fulfil the purposes for which it has been collected. This will include any period of retention required to satisfy any legal, regulatory, taxation, accounting, regulatory or reporting requirement applicable to the relevant Systematica Entity.
In determining the appropriate retention period for any personal data, the relevant Systematica Entity will consider the amount, nature and sensitivity of the data, the potential risk of harm from unauthorised use or disclosure of the data, the purpose for which the relevant data is being processed, the extent to which the purposes for which the relevant data is being processed can be achieved by other means and any applicable legal requirements. Without prejudice to the generality of the forgoing, the Systematica Entities have determined that they will retain records for at least 10 years.
Details of retention periods applicable to personal data subject to GDPR are available upon request from the compliance department of SISL. In some circumstances, a person may request that a Systematica Entity delete any personal data retained by it. Further, in some circumstances, a Systematica Entity may anonymize personal data for research or statistical purposes, in which case such information may be retained and utilised indefinitely without further notice.
Rights of Persons
Under GDPR, persons whose data is processed by a Systematica Entity will have certain rights. These rights include the right to access personal data, the right to require correction of personal data, the right to require erasure of personal data in certain circumstances, the right to restrict processing of personal data, and the right to require a transfer of personal data. In addition, if the processing of personal data is based on a legitimate interest of a Systematica Entity, a person will have the right to object to the processing of that personal data.
Any person seeking to exercise any such right should contact the compliance department of SISL. In certain circumstances, the relevant Systematica Entity may charge reasonable fees if any such request is clearly unfounded, repetitive or excessive.
COOKIES POLICY
This website uses cookies, which are tiny files that are downloaded to your computer or other device to improve your experience. Cookies allow a site or services to know if your computer or device has visited that site or service before. Cookies can then be used to help understand how the site or service is being used, help you navigate between pages efficiently, help remember your preferences, and generally improve your browsing experience. Cookies can also help ensure the marketing you see online is more relevant to you and your interests.
Cookies do not typically contain any information that personally identifies a user, but personal information that we store about you may be linked to the information stored in and obtained from cookies.
Cookies may be either “persistent” cookies or “session” cookies: a persistent cookie will be stored by a web browser and will remain valid until its set expiry date, unless deleted by the user before the expiry date; a session cookie will expire at the end of the user session, when the web browser is closed.
This page describes what information the cookies gather, how we use that information and why we sometimes need to store these cookies. We will also share how you can prevent these cookies from being stored; however, preventing the cookies from being stored may downgrade or ‘break’ certain elements of the sites functionality.
THE TYPES OF COOKIES WE USE
There are generally two types of cookies that we use: “Performance” and “Functionality”. The following is a brief description of each cookie category.
1. Performance Cookies. These cookies collect information about how you have used the website, for example, information related to the unique username you have provided. These cookies may also be used to allow us to know that you have logged in so that we can serve you fresher content than a user who has never logged in. We also use cookies to track aggregate website usage and experiment with new features and changes on the website. The information collected is used to improve how the website works.
2. Functionality Cookies. These cookies allow us to remember how you’re logged in, whether you chose to no longer see advertisements, whether you made an edit to an article on the website while logged out, when you logged in or out, the state or history of website tools you’ve used. These cookies also allow us to tailor the website to provide enhanced features and content for you and to remember how you have customized the website in other ways, such as customizing the toolbars we offer in the right column of every page. The information these cookies collect may be anonymous, and they are not used to track your browsing activity on other sites or services.
The names of the cookies that we use on our website, and the purposes for which they are used, are set out below:
| Cookie Type | Name | Purpose |
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| Functionality | disclaimer_agreed | To suppress the Disclaimer after users have dismissed it. |
| Functionality | Cookies_saw | To suppress the cookies notification ribbon after users have dismissed it |
| Functionality | Notification | To suppress notification pop-up from reappearing on the landing page. |
DISABLING COOKIES
You can prevent the setting of cookies by adjusting the settings on your browser (see your browser Help for how to do this). Be aware that disabling cookies will affect the functionality of this and many other websites that you visit. Disabling cookies will usually result in also disabling certain functionality and features of this site.
THIRD PARTY COOKIES
In some cases we also use cookies provided by trusted third parties. The following section details which third party cookies you might encounter through this site.
This site uses Google Analytics which is one of the most widespread and trusted analytics solution on the web for helping us to understand how you use the site and ways that we can improve your experience. These cookies may track things such as how long you spend on the site and the pages that you visit so we can continue to produce engaging content. For more information on Google Analytics cookies, see the official Google Analytics page.
From time to time we may test new features and make subtle changes to the way that the site is delivered. When we are still testing new features these cookies may be used to ensure that you receive a consistent experience whilst on the site whilst ensuring we understand which optimizations our users appreciate the most.
MORE INFORMATION
For more information please contact us through our preferred contact method.
Email: website.management@systematica.com