Citywire Montreux, 9‐11 May 2012
How to generate alpha through active
management in the commodity sector
Sander Bressers
Senior Portfolio Manager Commodities
2
Commodities: a relatively recent and convincing asset class
Commodity exposure: active management to extract alpha
Expertise applied: LGT Commodity Active Fund
Legal information
Table of contents
3
Commodities: a relatively recent and convincing asset class
4How to generate alpha through active management in the commodity
sector
Commodities: a relatively recent and convincing asset class
Source: LGT / IstockphotoInvestments open up new opportunities, but they also involve risks.
Please consider the legal information at the end of this presentation.
Agriculture‐Wheat‐ Corn‐ Soybeans‐ Cotton‐ Sugar‐ Coffee
Livestock
farming‐ Cattle‐ Pigs‐ Poultry‐Milk
Energy‐ Crude/heating oil‐ Natural gas‐ Coal
Precious
metals‐ Gold‐ Silver‐ Platinum‐ Palladium
Industrial metals‐ Aluminium ‐ Copper‐ Zinc‐ Lead
«Hard Commodities»(depletable
commodities)«Soft Commodities»
(renewable
commodities)
With more than 5 categories and over 20 sub‐asset classes,
commodities represent a broad investable universe
© LGT Capital Management
5How to generate alpha through active management in the commodity
sector
Inflation protection
Real assets
Commodities preserve purchasing power
Diversification Potential to improve portfolio returns
Source: LGTInvestments open up new opportunities, but they also involve risks.Please consult the legal information at the end of this presentation.
Physical underlying in a virtual world
Commodities: a relatively recent and convincing asset class
Diversification, inflation
protection
and “real assets“
investing
represent
the
main
reasons
for
a strategic
allocation
to commodities
© LGT Capital Management
6How to generate alpha through active management in the commodity
sector
Rising demand
Supply constraints
Geopolitical risk
Increasing production costs
Growth in world population
Wealth‐effect in emerging economies
Source: LGTInvestments open up new opportunities, but they also involve risks.Please consult the legal information at the end of this presentation.
Commodities: a relatively recent and convincing asset class
An investable
universe
likely
to benefit
from
longer‐term
rising
demand
and supply
constraints
© LGT Capital Management
7How to generate alpha through active management in the commodity
sector
Commodities: a relatively recent and convincing asset class
Source: UN, Worldbank, IEA, LGT
Population growth
Mainly
driven
by
developing
and
emerging
markets
countries
UN expectations
Evolution of world
population(in billion)
0
2
4
6
8
10
12
1950 1970 1990 2010 2030 2050 2070 2090
Prosperity
Increasing
consumption
of commodity goods
due
to increasing
income
Evolution of income
and energy
consumption(1970‐2010)
0
2'000
4'000
6'000
8'000
10'000
12'000
14'000
0 10'000 20'000 30'000 40'000 50'000Income (GDP/person), in USD
Energy con
sumption (kWh/pe
rson
)
JapanGermany
SwitzerlandBrazilChinaIndia
United StatesGreat Britain
Developing and emerging markets countriesDeveloped countries
Rising
demand: population
growth and prosperity
are
main
drivers
of world
demand
for
commodities...
© LGT Capital Management
8How to generate alpha through active management in the commodity
sector
Commodities: a relatively recent and convincing asset class
Source: Bloomberg
Boost in costs
for
crude
oil
exploitation
Mainly
driven
by
higher
costs, e.g. for
exploration, technology and licences
Increasing
prices
for
farm products
Due
to rising
costs
for
seeds/fertilizer/energy
resources
and scarcity
of arable
land
Evolution of total costs
of selectedcrude
oil
companies
(in USD billion)Rise
in production
costs
of agriculturecommodities
(in USD per acre)
WheatSoybeansCorn
0
50
100
150
200
250
300
350
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
0
100
200
300
400
500
600
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
Supply
contraints: bottlenecks
lead
to increasing
costs
for
exploration
and production...
© LGT Capital Management
9How to generate alpha through active management in the commodity
sector
Commodities: a relatively recent and convincing asset class
Source: BP Energy Bulletin
The map shows thelocations of crude oilreserves using theterritorial size...
Most of the crude oilreserves are located in areas with geopoliticalturbulences...
...and are thereforesubject to delivery suspensions and increase in prices
...and geopolitical
risk
plays
a key
role
in world
energy
supply
© LGT Capital Management
10
Commodity exposure: active management to extract alpha
11How to generate alpha through active management in the commodity
sector
Strategic
and
tacticalasset
allocation
Liquidity: easy
market
access
Exploiting
curve‐positioning:achieving
roll returns
Source: LGTInvestments open up new opportunities, but they also involve risks.Please consult the legal information at the end of this presentation.
Commodity exposure: active management to extract alpha
Active management seeks to achieve excess returns by curve‐
positioning and relative value trades
© LGT Capital Management
Real asset:underlyingphysicalmarket
Exploiting
decorrelation: relative value
trades
in
seasonality
and substitution
12How to generate alpha through active management in the commodity
sector
Backwardation
Contango
Passive Active
Reduce
negativeroll‐returns
Exploit
positiveroll‐returns
Activemanager
‐
a
‐
b
a
b
‐b
> ‐
a
a
> b
Curve‐positioning
is
paramount
Contract
maturity
Source: LGTInvestments open up new opportunities, but they also involve risks.Please consult the legal information at the end of this presentation.
Commodity exposure: active management to extract alpha
Alpha source
no. 1 – curve‐positioning:
optimization
of roll returns
© LGT Capital Management
13How to generate alpha through active management in the commodity
sector
Source: LGT / BloombergInvestments open up new opportunities, but they also involve risks.Please consult the legal information at the end of this presentation.
Commodity exposure: active management to extract alpha
Performance DJ UBS Energy Index vs. DJ UBS Energy 3‐months Forward Index
0
100
200
300
400
500
600
700
800
900
1000
12/97 12/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12
Performance reb
ased
(USD
)
DJ UBS Energy Index TRDJ UBS Energy 3month Forward Index TR
Alpha source no. 1 – curve‐positioning:
example
–
passive front‐month
vs. 3 months
forward
strategy
© LGT Capital Management
14How to generate alpha through active management in the commodity
sector
Source: LGT, Bloomberg, Commodities
(DJ UBS Indices), Equities
(MSCI Sectors), Correlations
for
the
Year
2009, weekly
dataInvestments open up new opportunities, but they also involve risks.Please consult the legal information at the end of this presentation.
Separate price‐patterns
and
independent
price‐drivers
Correlations
commodity sectors Correlations
equity
sectors
Similiar
price‐patterns
and
common
price‐
drivers
(e.g. GDP‐growth)
Risk
management
of great
importance
ENE MAT IND CST CDI HEA INF TEL UTIMSCI Energy 1.00 0.93 0.89 0.79 0.86 0.69 0.83 0.72 0.75MSCI Materials 1.00 0.93 0.79 0.91 0.71 0.86 0.75 0.74MSCI Industrials 1.00 0.85 0.96 0.75 0.88 0.76 0.74MSCI Cons. Stapl. 1.00 0.80 0.79 0.74 0.77 0.73MSCI Cons. Discr. 1.00 0.65 0.91 0.78 0.71MSCI Health Care 1.00 0.69 0.64 0.63MSCI Information 1.00 0.77 0.64MSCI Telecom 1.00 0.76MSCI Utilities 1.00
EN IM PM AG LSEnergy 1.00 0.65 0.12 0.61 0.24Industrial Metals 1.00 -0.11 0.58 0.16Precious Metals 1.00 0.06 -0.10Agricultures 1.00 0.08Live Stock 1.00
Commodity exposure: active management to extract alpha
Alpha source
no. 2 –
decorrelation:
the
extent
of decorrelation
is
a prime source
of potential alpha
© LGT Capital Management
15How to generate alpha through active management in the commodity
sector
Storage driven by crop cycle:
Seasonal
patterns
Storage
cycle Temperature
curve
Temperature
displays
yearly
seasonal
pattern
t
Harvest Winter
Storage/seasonal
patterns
impact
agricultural
pricesTemperature
impacts
demand
for
fuel: for
example, heating
oil
demand
increases
in winter
t
Source: LGTInvestments open up new opportunities, but they also involve risks.Please consult the legal information at the end of this presentation.
Commodity exposure: active management to extract alpha
Alpha source
no. 2 –
decorrelation:
seasonality
trades
to exploit
seasonal
patterns
© LGT Capital Management
16How to generate alpha through active management in the commodity
sector
Soybean/Corn spread
1.5
1.7
1.9
2.1
2.3
2.5
2.7
2.9
3.1
3.3
Jan
03
Jul 0
3
Jan
04
Jul 0
4
Jan
05
Jul 0
5
Jan
06
Jul 0
6
Jan
07
Jul 0
7
Jan
08
Jul 0
8
Jan
09
Jul 0
9
Jan
10
Jul 1
0
Jan
11
Jul 1
1
Jan
12
Soybeans are relatively cheap vs. corn
Therefore spring planting may favour corn
This may lead to a lower soybean production and boost soybean longer term
Corn
currently
expensive
vs
soybeans
LGTEstimate
+5% Soybeans
‐5% Corn
Marketexposure= 0
Corn
expensive
Soybeans
expensive
Source: LGTInvestments open up new opportunities, but they also involve risks.Please consult the legal information at the end of this presentation.
Commodity exposure: active management to extract alpha
Alpha source
no. 2 –
decorrelation:
substitution
between
related
commodities
© LGT Capital Management
17
Expertise applied: LGT Commodity Active Fund
18How to generate alpha through active management in the commodity
sector
Expertise applied: LGT Commodity Active Fund
Source: LGTInvestments open up new opportunities, but they also involve risks.Please consult the legal information at the end of this presentation.
Investors are
looking
for
expertise, experience
and professional
risk
management
Expertise: with over 20 sub‐asset classes, commodities represent a complex subject requiring in‐depth know‐how
Experience: active management requires hands‐on experience through various cycles in order develop the right strategy
Professional risk management: measuring exposure, risk and managing this risk is a specialist area which requires thesystems, people and processes
The
LGT Commodity Active
FundManaged by team of experienced professionals with hands‐on commodity futures trading experience
One lead‐manager 100% in charge of performance of the fund
Own investment: LGT has been lead‐investor into the strategy
Exploiting all key alpha drives: curve‐positioning and relative value trades
Integrated into LGT‘s award‐winning strategic and tactical asset allocation team – allows to test manager viewagainst team findings
UCITS‐conform structure via total return swap
AAA ‐ collateral not used to generate additional returns
© LGT Capital Management
19How to generate alpha through active management in the commodity
sector
Expertise applied: LGT Commodity Active Fund
Source: LGTInvestments open up new opportunities, but they also involve risks.Please consult the legal information at the end of this presentation.
Example of recent seasonal relative value trade:
gasoline – heating oil spread
© LGT Capital Management
Gasoline - Heating Oil Ratio ( May 2012 contracts)
0.86
0.88
0.9
0.92
0.94
0.96
0.98
1
1.02
Oct-11 Nov-11 Dec-11 Jan-12 Feb-12
Gasoline has outperformed distillates over the past 3 months, on refinery closures and stronger US macro data
Large managed money positions in gasoline have driven spread beyond fair value
We see gasoline as overbought on a relative basis and to mean‐revert, as refiners adjust their product mix
Spread above fair value
Spread below fair value
We consider gasolineexpensive vs
heat
Trade:3% Underweight Gasoline3% Overweight Heat
LGTestimate
20
Source: LGTInvestments open up new opportunities, but they also involve risks.
Please consider the legal information at the end of this presentation.
How to generate alpha through active management in the commodity
sector
Expertise applied: LGT Commodity Active Fund
Long Silver ‐
short Gold
Long Heating Oil ‐
short Crude
Long Soybeans ‐
short Wheat
Long Kansas Wheat ‐
short Chicago Wheat
Long Aluminium
‐
short Copper
Long Lean Hogs ‐
short Live Cattle
Spread trading at low end of recent range; appears attractively
valued compared to historical average
Relatively low crack spreads as crude bid up due to Iran tension.
Product prices to benefit from refinery closures
Soybeans expected to benefit from relatively tight balance sheet,
whilst wheat inventories at historically high levels
Seasonal trade: Kansas (higher protein/higher quality) wheat tends
to outperform Chicago (lower protein/lower quality) wheat during
Q1, ahead of planting season
Aluminium
vs
copper ratio (substitutes for construction and
automotive sector) at lower end of range historically; aluminium
to
benefit from capacity cuts now that prices below cash costs for
majority of producers
Although substitution is limited, spread shows mean reversion with
cattle currently trading at historically high level vs
hogs
Examples of currently implemented relative value trades (as of April 10, 2012)
+ 5 bps
break‐even
+ 35 bps
‐
5 bps
‐ 5 bps
+ 10 bps
© LGT Capital Management
Examples of other recent relative value trades:
generating non‐directional alpha
21How to generate alpha through active management in the commodity
sector
The fund gives beta exposure to commodities, benchmarked against the Dow Jones‐UBS Commodity Index
The Strategic Asset Allocation is determined by Asset Allocation & Research experts
The Tactical Asset Allocation is done by the Commodity Products team
DJ‐UBS Comdy
IndexBenchmark
33% Energy
20% Base Metals
12% Prec. Metals
35% Agriculture
StrategicAsset
Allocation
40% Energy
25% Base Metals
15% Prec. Metals
20% Agriculture
LGTCommodityActive
Fund
TacticalAsset
Allocation
LGT AssetAllocation& Research experts
CommodityProductsteam
Source: LGTInvestments open up new opportunities, but they also involve risks.Please consult the legal information at the end of this presentation.
Expertise applied: LGT Commodity Active Fund
Final alpha source: strategic asset allocation, LGT’s
core
competence
© LGT Capital Management
22How to generate alpha through active management in the commodity
sector
Source: LGT / BloombergInvestments open up new opportunities, but they also involve risks.Please consult the legal information at the end of this presentation.
The positive performance in the past is no guarantee of positive
performance in the future. The risk of price and foreigncurrency losses and of fluctuations in return as a result of unfavorable exchange rate movements cannot be ruled out.
* LGT Commodity Active Fund (USD) was approved as an investment undertaking for securities under
Liechtenstein law on 5
September 2011. It
is based
on
the identical
investment policy as
the
LGT CF
Commodity Fund (USD),
which
previously has been exclusively part of the Princely Portfolio. This allows the fund's past performance to be transferred as well.
(USD; net of LGT management fees; 30 November 2009 through 31 March 2012)
Expertise applied: LGT Commodity Active Fund
+ 7.7%
Outperformance: 1/3 curve‐positioning1/3 relative value
trades1/3 strategic
asset
allocation
LGT Commodity Active Fund (USD) B vs. DJ UBS Commodity Index TR (USD) since inception
+ 11.9%
+ 4.2%
90
95
100
105
110
115
120
125
130
135
11/09 01/10 03/10 05/10 07/10 09/10 11/10 01/11 03/11 05/11 07/11 09/11 11/11 01/12 03/12
Performance (reb
ased
) USD
LGT Commodity Active Fund (USD) BDJ UBS Commodity Index TR (USD)
Comparison
to Benchmark
DJ UBS CI TR
© LGT Capital Management
23
(USD; net of LGT management fees; 30 November 2009 through 31 March 2012)
*
LGT Commodity Active Fund (USD) was approved as
an
investment
undertaking
for
securities
under
Liechtenstein
law
on
5
September
2011.
It
is
based
on
the
identical
investment
policy
as
the
LGT
CF
Commodity
Fund
(USD),
which
previously has been exclusively part of the Princely Portfolio. This allows the fund's past performance to be transferred as well.
Source: LGT / BloombergInvestments open up new opportunities, but they also involve risks.Please consult the legal information at the end of this presentation.
Positive performance in the past is no guarantee of positive performance in the future. The risk of price and foreigncurrency losses and of fluctuations in return as a result of unfavorable exchange rate movements cannot be ruled out.
How to generate alpha through active management in the commodity
sector
Expertise applied: LGT Commodity Active Fund
LGT Commodity Active Fund (USD) –
performance vs. selected peers
© LGT Capital Management
Actively managed Commodity Funds Management company Since inception(30.11.2009)*
‐1 year(%)
Year‐to‐date(%)
LGT Commodity Active Fund (USD) B LGT Capital Management 11.9 ‐11.3 3.0
UBS (Lux) SS RICI (USD) P Acc UBS 10.8 ‐12.9 4.6
BNPP L1 World Commodities C C BNP Paribas 7.7 ‐15.0 2.0
PIMCO GIS Commodities
Plus Strat
E Acc PIMCO 7.1 ‐16.8 2.3
DJ‐UBS TR Enh
Strat
E56 UCITS‐III A USD Goldman Sachs 7.1 ‐15.1 2.2
Vontobel
Belvista
Commodity B USD Vontobel 6.3 ‐15.5 1.3
CSF (Lux) Commodity Index+ USD B Credit Suisse 4.3 ‐16.5 0.8
DJ UBS Commodity Index 4.2 ‐16.3 0.9
CS SICAV 1 (Lux) Commodity Alloc
B Credit Suisse 3.8 ‐16.7 0.7
Pioneer Fds
Commodity Alpha A USD ND Pioneer ‐1.2 ‐13.8 6.3
Threadneedle(Lux) Enh
Cmdty
Port AU Threadneedle ‐‐‐ ‐6.6 5.6
Fulcrum UcitsIII
Commodity I USD Fulcrum ‐‐‐ ‐1.3 0.5
24How to generate alpha through active management in the commodity
sector
Expertise applied: LGT Commodity Active Fund
Portfolio management –
Commodity Products
© LGT Capital Management
Name
Peter Sigg
Sander Bressers
Bayram
Dincer
Alexander Froschauer
Investment experience
11 years
15 years
10 years
21 years
Function
Head Commodity Products
Senior Portfolio Manager Commodities
Investment Analyst Commodities
Senior Product Specialist
With
LGT since
July
2007
July
2011
July
2008
November 2008
25How to generate alpha through active management in the commodity
sector
Expertise applied: LGT Commodity Active Fund
Responsible investment team
© LGT Capital Management
Senior Product Specialist‐
Senior Product Specialist Fixed Income, Client Services, LGT Capital Management, Pfäffikon‐
Head Fixed Income & FX (business area MACS), Credit Suisse Asset Management, Zurich ‐
Chief Investment Officer Fixed Income, BAWAG PSK Invest, Vienna‐
Senior Portfolio Consultant, Asset Management AG, Vienna‐
Certified European Financial AnalystAlexander Froschauer
Peter Sigg
Sander Bressers
Deputy Portfolio Manager ‐
Head Commodity Products, LGT Capital Management, Pfäffikon‐
Portfolio Manager Quantitative Strategies, IM Quant, LGT Capital Management, Pfäffikon‐
Portfolio Manager, AXA Winterthur Asset Management, Zurich‐
Quantitative Investment Analyst, Kraus Partner Investment Solutions AG, Zurich‐
MSc
in Business Administration, University of St. Gallen
(HSG)
Portfolio Manager ‐
Senior Portfolio Manager Commodities, Commodity Products, LGT Capital Management, Pfäffikon‐
Senior Portfolio Manager, Diapason Commodities Management, Lausanne‐
Hedge Fund Manager, Societe
Generale
Asset Management, Paris‐
Commodity Index Trader, ABN AMRO, London‐
MSc
in Economics, Erasmus University Rotterdam
26How to generate alpha through active management in the commodity
sector
Expertise applied: LGT Commodity Active Fund
Fund description LGT Commodity Active Fund is an actively managed portfolio, which invests broadly diversified in money market instruments, bonds and swaps, which are linked to the price development of commodities. Investments are made in several currencies and are hedged back into USD. The investment process includes quantitative and fundamental factors. The aim of the active management of the different commodities quotas is to create an attractive risk/return profile.
Inception/conversion date CHF: 30.11.2011 • EUR: 30.11.2011 • USD: 30.11.2009/30.11.2011*
Fund domicile Principality of Liechtenstein
Management company LGT Capital Management Ltd.
Investment manager LGT Capital Management Ltd.
Distribution None, retains profits
ISIN/Valor CHF: LI0134229264/13422926 • EUR: LI0134229249/13422924 • USD: LI0134229223/13422922
Bloomberg ticker CHF: LGTCABC LE • EUR: LGTCABE LE • USD: LGTCABU LE
Issue/redemption Daily (business days), cut‐off time 2.00 p.m. CET
Reference currency CHF • EUR • USD
Minimum investment 1 unit
Benchmark CHF: Dow Jones‐UBS Commodity Index Swiss Franc Hedged (TR) •EUR: Dow Jones‐UBS
Commodity Index Euro Hedged
(TR) •USD: Dow Jones‐UBS
Commodity Index (USD) (TR)
Portfolio manager Alexander Bressers (co‐responsible: Peter Sigg)
Registration FL/CH/AT (DE planned)
Fees & commissions Management fee p. a. 1.50%Operations
fee
p.a. 0.30%
The detailed and binding terms and conditions can be found in
the full or simplified prospectus issued by LGT Capital Management Ltd. with information to the LGT Commodity Active Fund.
* LGT Commodity Active
Fund
(USD) was approved as an investment undertaking for securities under Liechtenstein law on 5 September 2011. It is based on the identical investment policy as the LGT CF Commodity Fund (USD), whichpreviously has been exclusively part of the Princely Portfolio. This allows the fund's past performance to be transferred as well.
LGT Commodity Active Fund –
terms & conditions
© LGT Capital Management
27How to generate alpha through active management in the commodity
sector
This document is intended solely for the recipient and may not be duplicated, distributed or published either in electronic or any other form without the prior written
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Foundation.
This
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has taken place since its publication or that it is still up to date. The information in this publication does not constitute an
aid for decision‐making in relation to financial,
legal, tax or other consulting matters, nor should any investment or other decisions be made on the basis of this information alone. It is recommended that advice be
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expert.
Investors
should
be
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that
the
value
of
investments
can
fall
as
well
as
rise.
Positive
performance
in
the
past
is
therefore
no
guarantee of positive performance in the future. Forecasts are not a reliable indicator of future value developments. The risk of price and foreign currency losses and of
fluctuations in return as a result of unfavorable exchange rate movements cannot be ruled out. There is a possibility that investors will not recover the full amount they
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We
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It is up to potential investors to obtain comprehensive information and appropriate advice in their home country, country of residence or country of domicile about the
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The securities and rights mentioned in this document may not be purchased or held by investors or for investors domiciled in the
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may such securities and rights be transferred to them.
Legal information
© LGT Capital Management
28How to generate alpha through active management in the commodity
sector
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Accordingly,
statutory
liability
under
the
SFA
in
relation
to
the
content
of
prospectuses
would
not
apply.
You
should
consider
carefully
whether
the
investment
is
suitable for you.
This document has not been registered as a prospectus with the MAS. Accordingly, this document and any other document or material in connection with the offer or sale, or invitation
for
subscription
or
purchase,
of
Shares
may
not
be
circulated
or
distributed,
nor
may
Shares
be
offered
or
sold,
or
be
made
the
subject
of
an
invitation
for
subscription
or
purchase,
whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor under Section 304 of the SFA, (ii) to a relevant person pursuant to Section 305(1), or any
person pursuant to Section 305(2), and in accordance with the conditions specified in Section 305 of the SFA, or (iii) otherwise
pursuant to, and in accordance with the conditions of, any
other applicable provision of the SFA.
Where Shares are subscribed or purchased under Section 305 by a relevant person which is:
(a)
a
corporation
(which
is
not
an
accredited
investor
(as
defined
in
Section
4A
of
the
SFA))
the
sole
business
of
which
is
to
hold
investments
and
the
entire
share
capital
of
which
is
owned by one or more individuals, each of whom is an accredited investor; or
(b) a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary of the trust is an individual who is an accredited investor,
securities
(as
defined
in
Section
239(1)
of
the
SFA)
of
that
corporation
or
the
beneficiaries
rights
and
interest
(howsoever
described)
in
that
trust
shall
not
be
transferred
within
six
months after that corporation or that trust has acquired the Shares pursuant to an offer made under Section 305 except:
(1) to an institutional
investor or to a relevant person defined
in Section 305(5) of the SFA, or to any person pursuant
to
an
offer
referred
to
in
Section
275(1A)
of
the
SFA
or
Section
305A(3)(i)(B) of the SFA;(2) where no consideration is or will be given for the transfer;
(3) where the transfer is by operation of law; or
(4) as specified in Section 305A(5) of the SFA.
Legal information
–
Selling
restrictions
for
Hong
Kong
& Singapore
© LGT Capital Management
29How to generate alpha through active management in the commodity
sector
ContactPhone
+41 55 415 9211 Fax
+41 55 415 9230
E‐Mail
Internet
www.lgt‐cm.com
LGT Capital Management Ltd. Herrengasse 12
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Principality of Liechtenstein
LGT Capital Management Ltd.Schützenstrasse 6
CH‐8808 Pfäffikon (SZ)
Switzerland
Further specialists in Singapore and Hong Kong
LGT Capital Management Ltd.
(Niederlassung
Deutschland)Schaumainkai
85
D‐60596 Frankfurt am Main
Germany
LGT Capital Management
© LGT Capital Management
30
Picture description"Equatorial Sundial", c. 1597/1600
ERASMUS HABERMEL
1540–1606
Erasmus Habermel was one of the 16th century's most renowned makers of
sundials and technical equipment. In October 1594 he was appointed by Emperor
Rudolf II to the position of astronomical and geometrical instrument maker in
Prague. However, equipment made by him bear inscriptions which indicate that he
must have been active in Prague prior to this in the years 1576 and 1580. The
instrument is unusual for this epoch, as they were usually designed to be
suspended, i.e. without a stand, although this had certain drawbacks in terms of
legibility. Erasmus Habermel solved this problem by connecting the sundial's
meridian ring to the stand and the compass. The stand is equipped with a compass,
enabling the device to be aligned with the magnetic north pole. It also has a plumb
line, for geocentric alignment. Once the instrument has been aligned with the
points of the compass, its readings are unequivocal. The main parts of the
instrument are the fixed vertical meridian ring, with the adjustable annular ring and
the horizontal global equator ring. The annular ring is attached
to the month slide. It
was possible to perform numerous functions with this multifunctional scientific
instrument.
© Sammlungen des Fürsten von und zu Liechtenstein, Vaduz–Wien
LIECHTENSTEIN.
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