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Advantages | Vortex Currency Model | Collateral Reserve | Q & A | Presentation | Performance
Frequently Asked Questions
Vortex Currency Group Principal Secured Managed Currency Trading
The Vortex Currency Group Managed Account frequently asked questions:
| Q: |
What is the structure of the Managed Accounts? |
| A: |
The Vortex Currency Group, LLC (Managed Account) is a Nevada Limited Liability Company, holding all individual Managed Accounts. |
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| Q: |
Who is the Investment Advisor? |
| A: |
Elsworth Berg Capital Management, LLC (EBCM) |
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| Q: |
Who is Elsworth Berg Capital Management, LLC? |
| A: |
EBCM is a Registered Investment Advisor (RIA) registered with the state of California since 2001. In addition to the Vortex Currency Group Managed Accounts, EBCM serves as General Partner to several FX Investment Limited Partnership’s. |
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| Q: |
What is EBCM’s investment strategy? |
| A: |
EBCM trades in the Foreign Currency Exchange ( FX or FOREX), focusing strictly in the day to day cash currency market. It has trading teams in London, Switzerland, and New York. |
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| Q: |
What is the projected monthly return? |
| A: |
We are targeting a 2-4% net monthly return. |
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| Q: |
What is the size limitation of the Managed Account? |
| A: |
Unlimited |
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| Q: |
What are the Managed Account features? |
| A: |
The Managed Account consists of two components: 1) Currency trading account 2) Collateral Reserve account. An investor’s Managed Account contribution is split 70% into the currency trading account and 30% into the Collateral Reserve. |
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| Q: |
What is the Collateral Reserve? |
| A: |
The Collateral Reserve is a Trust which purchases and holds “Investment Grade Senior Life Settlement” instruments to secure 100% of the Managed Account contributions. |
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| Q: |
Who holds the collateral? |
| A: |
Swiss Alliance Trust AG (1976) Geneva Switzerland. |
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| Q: |
Who is Swiss Alliance Trust? |
| A: |
A Swiss Trust Company formed in 1976 specializing in security instruments. |
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| Q: |
Does the Managed Account investor own the collateral? |
| A: |
No. The investor receives a beneficial interest in the Trust equal to 100% of their Managed Account contributions. |
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| Q: |
What is the minimum investment? |
| A: |
$50,000 USD |
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| Q: |
Who can invest in the Managed Accounts? |
| A: |
Individuals / Trusts
Retirement / IRA / 401 (k) Plans / self-directed
Institutions
Corporations /Partnerships |
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| Q: |
Can I invest my IRA or 401K money (self-directed)? |
| A: |
Yes. Minimum investment $50,000 |
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| Q: |
Who holds my assets? |
| A: |
IRS qualified third party Trustee (i.e. Fiserv). |
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| Q: |
How often will I receive a statement? |
| A: |
Bi-Monthly account statements are available 24/7 via password protected website access. |
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| Q: |
What are the risks? |
| A: |
All Managed Account contributions are 100% secured by a beneficial interest in the Collateral Reserve trust. |
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| Q: |
What are the fees? |
| A: |
A 25% performance fee of Managed Account profits is assessed quarterly in arrears utilizing a high water mark. An asset based management fee of .5% is assessed quarterly in advance. |
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| Q: |
What is the liquidity of the Managed Account? |
| A: |
There is an initial lock-up period of 365 days after which time the current cash value of the Currency Trading account (70% of Managed Account contribution) is accessible on the 1st and 15th day of each month upon 5 days advance written request.
The Collateral Reserve portion (30% of Managed Account contributions) is held for a maximum of five years.
There is a vesting schedule for the Collateral Reserve portion (30% of Managed Account contributions) WHICH APPLIES ONLY IN THE CASE OF A COMPLETE WITHDRAWAL FROM THE MANAGED ACCOUNT. The Collateral Reserve portion that will be immediately returned upon complete withdrawal from the Managed Account is vested at a rate of 20% for each completed trading year. Any remaining Collateral Reserve balance will be returned at the end of the five year term.
The only time that a Managed Account investor’s Collateral Reserve will return an amount greater then their Collateral Reserve allocation (30% of Managed Account contributions) would be in the case of a complete withdrawal from the Managed Account when the Currency Trading account (70% of Managed Account contributions) has a value less then the sum of all Trading Account allocations. |
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The following hypothetical illustrations show various Managed Account withdrawal scenarios.
Example One:
The initial investment of $100,000 is divided into two components, the Currency Trading account (70% or $70,000) and the Collateral Reserve (30% or $30,000)
In the event of a complete withdrawal after a five year period, at which time the current value of the Currency Trading account has increased in value to $175,000.
The original Collateral Reserve allocation of $30,000 or (30% of Managed Account contributions) will be released and the total of $205,000 is returned to the Managed Account investor
| Account Opening |
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Account Withdrawal |
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| Initial Account Contribution |
$100,000 |
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| Currency Trading Account |
$70,000 |
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Currency Trading Account |
$175,000 |
| Collateral Reserve |
$30,000 |
|
Collateral Reserve |
$30,000 |
|
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Total Managed Account Withdrawal |
$205,000 |
Example Two:
The initial investment of $100,000 is divided into two components, the Currency Trading account (70% or $70,000) and the Collateral Reserve (30% or $30,000)
In the event of a complete withdrawal after a one year period, at which time the current value of the Currency Trading account has decreased in value to $37,500.
The original Collateral Reserve allocation of $30,000 or (30% of Managed Account contributions) has achieved a one year 20% vesting (20% X $30,000 = $6,000). The Collateral Reserve surrender value of $6,000 will be released and the total of $43,500 is returned to the Managed Account Investor.
The Managed Account deficit at the time of complete withdrawal of $56,500 will be returned to the Managed Account Investor on or before the end of the five year collateral reserve period which began at the date of Managed Account contribution (4 years in this scenario).
| Account Opening |
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Account Withdrawal |
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| Initial Account Contribution |
$100,000 |
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| Currency Trading Account |
$70,000 |
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Currency Trading Account |
$37,500 |
| Collateral Reserve |
$30,000 |
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Collateral Reserve |
$6,000 |
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Total Managed Account Withdrawal |
$43,500 |
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At the end of Collateral period |
$56,500 |
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Total funds returned to Managed Account Investor |
$100,000 |
Example Three:
The initial investment of $100,000 is divided into two components, the Currency Trading account (70% or $70,000) and the Collateral Reserve (30% or $30,000)
In the event of a complete withdrawal after a three year period, at which time the current value of the Currency Trading account has increased in value to $200,000.
The original Collateral Reserve allocation of $30,000 or (30% of Managed Account contributions) will be released due to the 200% trigger and the total of $230,000 is returned to the Managed Account investor.
| Account Opening |
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Account Withdrawal |
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| Initial Account Contribution |
$100,000 |
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| Currency Trading Account |
$70,000 |
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Currency Trading Account |
$200,000 |
| Collateral Reserve |
$30,000 |
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Collateral Reserve |
$30,000 |
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Total Managed Account Withdrawal |
$230,000 |
Example Four:
The initial investment of $100,000 is divided into two components, the Currency Trading account (70% or $70,000) and the Collateral Reserve (30% or $30,000)
With partial withdrawal of gains (projecting a 4% monthly net return) at the end of year one and year two followed by a complete withdrawal at the end of year three.
Withdrawal at the end of year one equals $33,600. Withdrawal at the end of year two equals $33,600. At the end of year three the current value of the Currency Trading account has increased in value to $103,600.
Upon complete withdrawal at the end of year three, the original Collateral Reserve allocation of $30,000 (30% of Managed Account contributions) would be released due to the 200% trigger being reached, which includes the Currency Trading account gains added to any gains previously withdrawn. The total of $133,600 is returned to the Managed Account investor at the time of complete withdrawal.
| Account Opening |
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Account Withdrawal |
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| Initial Account Contribution |
$100,000 |
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Partial withdrawal year one |
$33,600 |
| Currency Trading Account |
$70,000 |
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Partial withdrawal year two |
$33,600 |
| Collateral Reserve |
$30,000 |
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Currency Trading Account |
$103,600 |
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Collateral Reserve released |
$30,000 |
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Managed Account Withdrawal |
$133,600 |
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Total funds returned to Managed Account Investor |
$200,800 |
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