Saturday, May 2, 2015




With RMB Depeg and Gold Backing Protection Strategies
By JC Collins
It is with great excitement that I introduce the world’s first SDR based financial product which is available to the average retail investor.  The SDR Futures Account, or SDRF, functions outside of the systems of the global institutions and central banks, but is based on the framework and diversification of the SDR.
Over the last few months Matt McBride and I have been working on a method by which the average investor could protect their wealth during the multilateral transition which is taking place.  The concept was to base a method of wealth preservation on the same principles of diversification which the central banks and international institutions are planning on using themselves.
This method is structured around the Special Drawing Rights of the International Monetary Fund and the basket composition of currencies which make up its valuation.  As the move away from the unipolar USD continues, the positioning of the SDR as the global reserve unit of account is beginning to solidify within the framework of the macroprudential policies of the international institutions themselves.

The urging of both China and the IMF to have the yuan added to the SDR composition this year is extremely telling of the process which is unfolding. The volatility in forex markets and stock exchanges around the world, not to mention commodity markets, are leaving individual and retail investors exposed.
This risk is compounded by the growing deflation which is spreading around the world at an incredible speed.  The exchange of domestic currencies in the foreign reserve accounts with SDR could cause volatility and temporary highs and lows which will be challenging to measure and time accordingly.
The SDR Futures Account is the first of its kind.  The international investment opportunity which is presented with the SDRF is unlike any other experience offered anywhere else for the private retail investor.
The SDRF will play a pivotal role in the management of portfolios while reducing the portfolio variance through a method of multilateral diversification.  This is achieved within the SDRF by the synthetic replication of the current and future weights of the currencies which make up the SDR basket valuation.
The SDRF is the Experience which will contribute to stable and efficient portfolios.
With the first ever private SDR Futures contract, individual investors can capitalize on the broadening framework of the multilateral financial system which is beginning to replace the unipolar USD system.
The nature of the SDR as a reserve asset has provided a functional alternative to the USD for use by central banks, development banks, and other international institutions.  This important position of the SDR within the global framework ensures that the international banks and institutions will indirectly provide market support and market maintenance policies and procedures which will maintain constant SDR liquidity.  This stable SDR marketability will enhance the trading depth and breadth of the SDRF, a truly new and unique financial product.
The SDRF will account for fluctuations in the SDR valuation and weighted composition while providing macro stability to micro portfolios.  The SDRF provides the bridge by which private and group portfolios can be integrated within in the multilateral financial system.  This process is similar to other existing foreign currency futures.
The SDRF can also be used as a hedge against the fluctuations of SDR valuations relative to the valuations of specific domestic currencies.
The Special Drawing Rights Futures account (SDRF) is structured around the principles of the derivatives market.  Like existing futures contracts, an investor will not be purchasing actual SDR but will be entering into an agreement to buy and sell the SDRF as a fixed price on a specific future date.
Since the investor is not purchasing shares in a stock there are no dividends paid and no shareholder meetings or material which require time and attention.
Unlike stocks, the SDRF investor can make money whether the agreed upon valuation and composition of the SDR goes up or down, and adjusted one way or another.  This is the basic fundamental principle of a futures contract.  The SDRF can be balanced monthly and quarterly.
Our SDRF accounts, powered by Interactive Brokers, are invested and regularly rebalanced according to the IMF SDR basket composition.
Currently this currency basket allocation is
USD 41.9%
EURO 37.4%
GBP 11.3%
Yen 9.4%
SDRF accounts can be setup with a minimum of $10,000USD for individuals, partnerships, trusts, companies and retirement vehicles
Accounts can be simply added to, withdrawn from, or closed at any time.
Base Currencies are available in AUD, CAD, CHF, EUR, GBP, HKD, JPY, MXN, NZD, SEK, or USD
The costs of running this innovative diversification strategy is comparative to cash management and money market accounts.
The diversification of the SDR basket creates a level of superior stability which no domestic currency can equal. The exchange rate risk associated with the individual currencies in the basket composition, being represented as gains and losses, will offset one another (depending on their weighting in the basket), adding further stability.  This means that the exchange rates which function within the basket are imperfectly and negatively correlated, spreading the risk over many assets as opposed to investments which are denominated in a single domestic currency.
This will allow the SDRF to provide efficient and stable portfolios with a diversification of risk.
Additional strategies which are incorporated within the SDRF account include a unique and SDRF exclusive RMB depeg protection, where investors can hedge US dollar assets.
The sudden Swiss depeg from the Euro on January 15, 2015 had drastic effects on many unprepared retail investor portfolio’s.
Are you ready if the Chinese end their peg to the dollar?
Hedge your US Dollar assets with our RMB Depeg Protection.
This strategy will provide the user trade gains in the event of the RMB appreciating against the USD once the managed peg is severed.
·         Requirement: Must have an SDRF account
·         Minimum allocation to this additional strategy: $1500USD
·         Cost to setup strategy: $100USD One off
Another retail investor portfolio protection strategy which is exclusive to SDRF is focused on gold backing protection.
Although the current SDR basket composition does not proportion any weight to gold, key nations such as China and Russia are buying gold to indirectly strengthen their currency, and provide stability to their foreign reserve accounts.
Back your SDRF account implicitly with gold using our Gold Backing Protection.
This strategy utilizes the highly respected Merk Gold Trust (OUNZ)
The Merk Gold Trust (the “Trust” or “OUNZ”) provides investors with a convenient and cost-efficient way to buy and hold gold through an exchange traded product with the option to take physical delivery of gold.
·         Requirement: Must have an SDRF account
·         Minimum allocation to this additional strategy: $1500USD
·         Cost to setup strategy: $100USD One off
The SDRF Account Premium members will get access to specific articles by myself and other financial experts from around the world, podcasts and regular discussion panels, and a copy of Willem Middelkoops fantastic book The Big Reset.
This is a very exciting time for the international monetary system.  The volatility throughout the transition from a unipolar world to a multilateral world will see a massive transfer of wealth.  But here the SDRF presents a way to protect personal wealth by using the same framework of stability and diversification which the global institutions and central banks are planning on using themselves.  – JC
The SDRF Experience for the global investor.

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