Page 26 - Bullion World Issue 9 January 2022
P. 26

Bullion World | Issue 09 | January 2022

           markets, taking advantage of      trend changes in a particular metal   client vaulting portal which allows
           reducing portfolio risk through   and we attempt to leave as late as   them to have a thorough overview
           rebalancing is very clear.        possible from an appreciating metal   of their holdings (right down to
                                             or metals through self-generating   individual bar / serial numbers) at
           Precious metals, including Gold,   trailing stop-loss variables.    all times from their smartphone.
           Silver, Platinum, Palladium                                         Whilst Auctus Metal Portfolios has
           and Rhodium, have grown in        What audited returns have your    a minimum investment requirement
           prominence in recent years,       clients seen since you began      of S$250,000 (US$185,000) and
           as viable and safe investment     offering Auctus Metal Portfolios   is headquartered in Singapore,
           alternatives to include in one's   to your clients in January 2016?  the vast majority of our clients are
           overall asset portfolio. We are also   Clients who have invested with us   domiciled overseas; with clients
           always considering the liquidity   since 2016 have enjoyed a very   spread across all continents from
           of each precious metal along with   comfortable ride indeed, seeing   India to the US, Australia to Europe
           the broader analysis that we apply.   returns of 850% as of today. Whilst   and everything in between. We
           This is particularly true when you   precious metals have very much   appeal to both high net worth
           consider global Central Banks have   underperformed the markets     individuals, financial institutions
           been net buying Gold in record    over the last 15 months, this is   and wealth management who are
           numbers every year since 2010     quite normal when examining       looking to generate that alpha
           into 2021; again this is done as   historical cycles and price analysis   return over and above a static
           a diversification tool for Central   charts. Precious metals have   holding of Gold or Silver.
           Bank's very own asset portfolio.   been technically price back-filling
           Careful asset allocation seeks    and building a solid foundation
           to increase risk-adjusted returns   while at the same time the overall
           through diversification, based on   macroeconomic and fundamental
           the principle that different assets   story for metals has grown ever
           perform differently under varying   stronger.
           market and economic conditions.                                       Mr David started off as a
           For several decades, investors have   Tell us about your bespoke      computer programmer but was
           achieved this balance, through    vaulting solution and the type of   offered the opportunity to join
           traditional asset classes, such as   clients Auctus Metal Portfolios   the trading desk at Rothschild’s
           stocks, bonds, property and cash.   attracts?                         in London in the mid 80’s and
           I would suggest that precious     When I was setting up the structure   was thoroughly captivated.
           metals are very much about to have   of our client's vaulting solution for   Having spent over 20 years with
           their 'day in the sun' so to speak   Auctus Metal Portfolios, I wanted to   a number of investment banks
                                                                                 including Swiss Bank, HSBC and
           and these other asset classes are   absolutely ensure that our clients   NationsBank who took over Bank
           clearly very overvalued.          would have zero third party liability   of America, David has worked
                                             or counterparty risk. To achieve    all over the globe and achieved
           Truly a perfect storm and a       this, we decided not to go with the   success initially as a chief dealer
           diversification opportunity       usual sub-accounts or custodial     and then later as the head of the
           extraordinaire.                   accounts which are typically        proprietary risk trading desks.
                                             exposed to counterparty risk, but
           When thinking about a metals      rather offer our clients a 3rd party   Mr. David is a founding partner
           portfolio, it is important to     vaulting solution with Malca-Amit at   of Auctus Metal Portfolios
           understand that precious metals   Le Freeport Singapore.              in 2016, a physical precious
           move in amplitudes of value against                                   metal management system
           each other in clearly defined ranges   All of our client's vaults are wholly   that balances clients’ vaulted
           over differing economic periods   segregated under their family name   metal holdings at Le Freeport
                                                                                 Singapore between Gold,
           or cycles. Each metal has its own   and fully allocated with metals at   Silver, Platinum, Palladium and
           unique, determinable pricing      all times. The client's holdings are   Rhodium. These vaulted accounts
           relationship with the others. Our   fully insured by Lloyd's of London   are held under the client's own
           Auctus Metal Portfolios algorithms   and regularly audited. Auctus Metal   family name which ensures
           are focused entirely on extracting-  Portfolios is a long-only portfolio   sole title and fully segregated
           out optimal returns from an already   and we never revert back to Fiat   ownership of the bullion.
           acceptable performing asset class   currency; unless of course the
           (precious metals); by identifying   client wishes to sell down some or
           such investment opportunities that   all of their metals; which of course
           have not already been recognised   they are free to do at any time and
           through standard analysis. We tend   without penalty. We provide our
           to arrive very early in identifying   clients with a unique login to our

           26
   21   22   23   24   25   26   27   28   29   30   31