June 2009:<br />The Federal Reserve Transparency Act would require the first audit ever of the Federal Reserve. The bill has 234 sponsors, a comfortable majority of the members of the House, and is gaining momentum. <br />The Obama administration should be delighted, given its commitment to transparency in government.<br />
Current situation<br /><ul><li>Global Investment Crisis
How much potential risk exposure is there?</li></li></ul><li>T I P <br />Transparency, Instant Liquidity and Principal Protection<br />
Principal Protection<br /><ul><li>Investment structure designed to provide 100% principal protection.
Full capital preservation for today’s volatile markets
Risk-Free investment funds with higher than average ROI
A Truly Bullet Proof Investment</li></li></ul><li>Principal Protection: Example<br />Policy: 80 - 90% of a fund’s investment capital and profits are allocated to purchase AAA rated Government Treasury Bonds.<br />Investors<br />Eprinciple guaranteed Fund<br />AAA Bank Notes<br />SP500 futures trading<br />10%<br />85-90%<br />G7 Government Bonds<br />
Protection levels<br /><ul><li>A fund guarantee is only as strong as its guarantor.
The underlyingmarket positions to besoldintohighlyliquidmarkets (in real time);
Funds to beavailable the next clearing dayready for transfer.</li></li></ul><li>Transparency<br /><ul><li>In order to establish investor trust, Hedge Funds should provide:
Complete transparency of all key internal & external factors
Ability for the investor to check all transactions / internal processes
First rate auditing and control oversight</li></li></ul><li>Transparency: a solution<br /><ul><li>NextGenerationHedgeFundsshouldinclude the following:
Complete due diligence documentation (DDQ) includingManagement Team
All VerifiedAncillaryentities (i.e. Custodial, Accounting, Legal, etc.)
Third Party Administrators</li></li></ul><li>ONLINE transparency& Accountability<br />New technologies<br />
A new online solution<br /><ul><li>Thanks to new technologies, we can envision a new kind of Financial world based on trust, liquidity and capital protection.
New breakthrough technologies combined with the essential requirement for full accountability, creates a new standard in the financial world... a standard which is anchored with full trust, liquidity and capital protection.
Through the interconnection of all these critical factors in the Hedge Fund chain, new benefits can be obtained.</li></li></ul><li>Problems<br />The bigpicture<br />Solutions<br />
With new standardizationand technologies, the HedgeFundindustrywill enter a new phase!<br />
It is time to takeourindustryinto a new direction.<br />