CFM Quantum Index
SRI Operating Memornadum
CFM Quantum Index SRI Operating Memorandum
Introduction The CFM Quantum Index was formed by Capital Financial Markets Limited (“CFM”) in July 2010.
Operating Memorandum This Operating Memorandum details the basis by which the Index will be managed and how the index levels are calculated.
Custodian & Broker The Strategy Manager has appointed Capital International Limited (“CIL”) of Mill Court, Hope Street, Castletown, Isle of Man, IM99 5XH as lead custodian and broker to the strategy.
The CFM Quantum Index is based on the performance of an underlying reference strategy called the CFM Quantum Strategy.
CIL provides international dealing, custody, investment management and portfolio administration services. At the time of publication, CIL administered over $3.5bn of assets. CIL is a member of the London Stock Exchange and is licensed by the FSC. CIL is a member of the Capital International Group.
Strategy Manager
Participation Units
Reference Strategy
The CFM Quantum Strategy is managed by Capital Financial Markets Limited (“CFML”) of Mill Court, Hope Street, Castletown, Isle of Man, IM9 1AN. CFML is a specialist provider and issuer of contracts for difference and spread bet contracts. CFML is regulated by the Isle of Man Government Financial Supervision Commission (“FSC”) to conduct investment business. CFML is a wholly owned subsidiary of Capital International Limited (“CIL”). CIL is a member of the London Stock Exchange and is also licensed by the FSC. CIL is a member of the Capital International Group.
Strategy Adviser The Strategy Manager has appointed Universal Tax Strategies LLP (“Universal”) of Aire House, Mandale Business Park, Belmont, Durham, DH1 1TH as the strategy investment adviser.
Participation in the CFM Quantum Strategy will be sub-divided into standard participation units with a nominal value of £1 each. The Strategy Manager may issue additional units or cancel units as necessary to facilitate contributions to or withdrawals from the CFM Quantum Strategy.
Valuation The strategy will be valued on a mark to market basis quarterly on the last calendar day of each quarter. The Strategy Manager may at its absolute discretion determine additional valuation points on an ad hoc basis. The strategy’s value will be determined by deducting the total liabilities from the total assets of the strategy. The value of the assets and liabilities of the strategy will be determined in accordance with CFML’s standard strategy valuation policy, which is available on request and may be published from time to time on CFML’s website.
Universal is a wealth manager and financial adviser who provide financial planning and advice to a wide range of individuals, corporate and trust client. Universal are regulated by the UK Financial
Unit Pricing
Services Authority (“FSA”).
The Directors reserve the right to adjust the unit price on any valuation date to reflect the approximate true cost or value per unit associated with any investment or redemption from the strategy.
The net asset value per unit will be calculated by dividing the net asset value of the strategy by the total number of units participating in the strategy.
Publication of Unit PricingÂ
Investment Strategy
The unit price of the strategy will be available on request from CFML. The unit price may also be published on CFML’s website. CFML will additionally endeavour to maintain pricing of the strategy on Bloomberg.
The investment strategy of the CFM Quantum Strategy is to maintain exposure to a focused number of specialist collective investment schemes operating in the UK bridging finance market.
Contributions & Withdrawals The CML Quantum Strategy is a private strategy operated by CFML. From time to time CFML may choose to contribute additional monies to or withdraw monies from the strategy at it’s absolute discretion. Contribution and withdrawals may only be made on a valuation date. The amount of the contribution or withdrawal (after deduction of any charges) divided by the unit price on that valuation date will determine the number of units invested or disinvested. The strategy is subject to certain restrictions and minimum notice periods with respect to withdrawals.
Investment Objective To maximise returns and manage volatility through exposure to the UK bridging finance market.
Base Currency Sterling
Management Approach The strategy is actively managed by the Strategy Manager on the advice of the Strategy Adviser in accordance with the investment strategy detailed below.
Return Objective The strategy aims to achieve a net return after fees of 5% per annum. The return objective is a target and is not guaranteed.
Due to the specialist nature of the asset class and the limited availability of suitable collective investment schemes the strategy is expected to be concentrated in fewer than three underlying collective schemes.
Leverage & Borrowing Powers The CFM Quantum Strategy will not utilise leverage or borrow against the assets of the strategy.
Restrictions The CFM Quantum Strategy may only maintain exposure to securities approved by the Strategy Adviser.
Risk The provision of bridging finance involves a high degree of risk and there is no guarantee that the strategy will achieve the target return or that the strategy will not fall in value. The strategy endeavours to mitigate some of these risks through diversification and by investing in funds that specialise in the bridging finance market. The nature of bridging finance involves loans with durations ranging between 1 and 12 months. Should a loan go into default, then the fund that owns it may be required to take possession of the secured property and seek to sell it to recover the loan. This may take significant additional time to achieve. As such participation in the bridging loan market should be consider a medium to longer term strategy and is not appropriate for shorter term participation.
Fees, Charges and Expenses An Investment Administration Fee of 2.1% per annum will be calculated and deducted quarterly. The investment administration fee is inclusive of the Strategy Advisers commission and all custody and administration charges. All dealing and clearing costs, miscellaneous and legal costs will passed onto the strategy.
www.capital-iom.com
Contact Details
www.capital-iom.com/CFML T : +44 (0) 1624 828200 E: info@capital-iom.com Capital International Limited and Capital Financial Markets Limited are members of the Captial International Group Capital International is a member of the London Stock Exchange and is licensed by the Isle of Man Financial Supervision Commission Capital Financial Markets Limited is licensed by the Isle of Man Financial Supervision Commission Registered Address: Mill Court, Hope Street, Castletown, Isle of Man, IM( 1AN
CFML - QISRIOM - V1.01-07.10
Capital Financial Markets Limited Mill Court Hope Street Castletown Isle of Man IM99 5XH