NEWS - 16

Salus Alpha products outperform equity markets

Thu, 10/11/2011

For the year up to 31/10/2011, all Salus Alpha Funds clearly outperformed global equity markets in a difficult environment.

The Salus Alpha Commodity Arbitrage had a performance of +4.84% for the year to date until , while the US S&P 500 Index lost -0.35%, and the German DAX30 index lost -11.18% in the same period. This is an outperformance against the S&P 500 Index of +5.19% and against the DAX 30 Index of +16.02%.

In such a difficult market environment, this outperformance results from the employment of an active management approach and from the diversification over numerous strategies and substrategies.

The Salus Alpha RN Special Situations had a performance of +3.76% for the month to date.

The Salus Alpha Real Estate had a performance of +1.98% for the month to date. Salus Alpha Real Estate is a single manager single strategy fund, which invests according to Salus Alpha’s proprietary Global Real Estate Model. The fund currently has an exposure of 100% to the Real Estate markets. Salus Alpha Real Estate has been awarded a 5 Star Rating by www.fondsprofessionell.de for its exceptional performance since inception on 21 January 2008. The fund outperformed the EPRA/NAREIT Real Estate Index by +23.14% in this timespan.

The Salus Alpha Event Driven had a performance of +0.72% for the month to date; the Salus Alpha Multi Style had a performance of +0.72% for the month to date; the Salus Alpha Managed Futures had a performance of -0.18% for the month to date; and the Salus Alpha Directional Markets had a performance of -1.00% for the month to date.

The Salus Alpha Equity Hedged had a performance of +3.18% for the year to date until 10/31/2011, outperforming the S&P 500 Index by +3.53%. The Salus Alpha Equity Hedged currently has a 14% exposure to Long Bias, 34% to Market Neutral, 22% to Long Short Variable Bias,  and 30% to Short Bias.

The Salus Alpha Commodity Arbitrage had a performance of +4.84% for the year to date until 10/31/2011, outperforming the S&P 500 Index by +5.19%. The fund outperformed the S&P GSCI Index by 2.29%, which booked a gain of 2.55% in the reporting period. The 12 month rolling alpha of Salus Alpha Commodity Arbitrage to the S&P500 is 4% p.a., the 12 month rolling beta is currently -0.1. This implies that in the past 12 months, the Salus Alpha Commodity Arbitrage had a return of 4% due to active management (alpha).

Salus Alpha Commodity Arbitrage tracks the CAX - Commodity Arbitrage Index. The CAX Index covers the performance of arbitrage strategies, which aim to extract consistent market neutral returns from valuation inefficiencies arising among related commodities - like for example Brent Crude vs. WTI Light Sweet Crude - or among different maturities of futures contracts on one commodity due to Contango, Backwardation and Seasonality.

Contango denotes a market situation where longer-dated commodity futures are priced higher than shorter-dated commodity futures. Markets in contango are characterised by low demand relative to available supply. In these markets, investors holding a long position suffer a roll loss when selling expiring contracts at low prices, and buying new contracts as higher prices. The CAX Index currently has a 10.00% spread position in Wheat, which is currently 24.70% p.a. contangoed.

NEWS - 12

Salus Alpha products outperform equity markets

Mon, 12/09/2011

For the year to 31 August 2011, all Salus Alpha Funds clearly outperformed global equity markets in a difficult environment.

The Salus Alpha Commodity Arbitrage had a performance of +9.13% for the year , while the US S&P 500 Index lost 3.08%, and the German DAX30 index lost 16.33% in the same period. This is an outperformance against the S&P 500 Index of +12.21% and against the DAX 30 Index of +25.46%.

Other products managed by Salus Alpha performed as follows for the year to date until 8/31/2011:  

Salus Alpha Commodity Arbitrage: +9.13% 

Salus Alpha Equity Hedged: +6.34% 

Salus Alpha Event Driven: +2.49%  

In such a difficult market environment, this outperformance results from the employment of an active management approach and from the diversification over numerous strategies and substrategies.

The Salus Alpha Real Estate had a performance of +0.68% for the month to date, outperforming the EPRA / NAREIT Index by +8.93%. The 12 month rolling alpha of Salus Alpha Real Estate to the Epra/Nareit Europe Index  is 7% p.a., the 12 month rolling beta is currently 0.2. This implies that in the past 12 months, the fund had a return of approximately 7% due to active management (alpha), and 0.19% return due to the positive market beta.

Salus Alpha Real Estate is a single manager single strategy fund, which invests according to Salus Alpha’s proprietary Global Real Estate Model. The Salus Alpha Real Estate outperformed the EPRA/NAREIT Real Estate Index by 8.93% and the GPR 250 Europe Index by 6.14% during the month of August. The fund currently has an exposure of 42% to the Real Estate markets.

Salus Alpha Real Estate has been awarded a 5 Star Rating by www.fondsprofessionell.de for its exceptional performance since inception on 21 January 2008. The fund outperformed the EPRA/NAREIT Real Estate Index by +22.30% in this timespan.

The Salus Alpha Commodity Arbitrage had a performance of +0.38% for the month to date, outperforming the S&P 500 Index by +6.06%. The fund outperformed the S&P GSCI Index by 2.04%, which booked a loss of -1.66% in the reporting period. The 12 month rolling alpha of Salus Alpha Commodity Arbitrage to the S&P500 is 9% p.a., the 12 month rolling beta is currently 0.0. This implies that in the past 12 months, the Salus Alpha Commodity Arbitrage had a return of 9% due to active management (alpha). Salus Alpha Commodity Arbitrage tracks the CAX - Commodity Arbitrage Index.

The CAX Index covers the performance of arbitrage strategies, which aim to extract consistent market neutral returns from valuation inefficiencies arising among related commodities - like for example Brent Crude vs. WTI Light Sweet Crude - or among different maturities of futures contracts on one commodity due to Contango, Backwardation and Seasonality. Contango denotes a market situation where longer-dated commodity futures are priced higher than shorter-dated commodity futures. Markets in contango are characterized by low demand relative to available supply. In these markets, investors holding a long position suffer a roll loss when selling expiring contracts at low prices, and buying new contracts as higher prices. The CAX Index currently has a 4.85% spread position in Lean Hogs, which is currently 37.55% p.a. contangoed.   

The Salus Alpha Equity Hedged had a performance of +6.34% for the year to date until 8/31/2011, outperforming the S&P 500 Index by +9.42%. The 12 month rolling alpha of Salus Alpha Equity Hedged to the S&P500 is 6% p.a., the 12 month rolling beta is currently -0.1. This implies that in the past 12 months, the fund had a return of 6% due to active management (alpha). The Fund outperformed the HFRX Equity Hedge Index by 20.22%. The Salus Alpha Equity Hedged currently has a 14% exposure to Long Bias, 34% to Market Neutral, 22% to Long Short Variable Bias,  and 30% to Short Bias.  

The Salus Alpha Event Driven had a performance of +2.49% for the year to date until 8/31/2011, outperforming the S&P 500 Index by +5.57%. The fund's performance for the period was 5.41% higher than the performance of the HFRX Event Driven Index.  The SA FX Strategies had a performance of -0.67% for the month to date, outperforming the S&P 500 Index by +5.01%. The product outperformed the industry benchmark Barclay BTOP FX Index by 0.70%. The index had a return of -1.37%. The FX Managers in the SA FX Strategies Portfolio profited by the USD's weakness vs. Russian Rouble, Norwegian Krone, Canadian Dollar, Australian Dollar, Swedish Krone, British Pound, Swiss Franc, Singapore Dollar, Mexican Peso, Polish Zloty and Brazilian Real. The managers incurred losses due to the Dollar's strength vs. New Zealand Dollar, and due to the USD devaluation vs. Euro, Japanese Yen and Danish Krone.  

The Salus Alpha Directional Markets had a performance of -2.24% for the year to date until 8/31/2011, outperforming the S&P 500 Index by +0.84%.

The Salus Alpha Multi Style had a performance of -0.76% for the year to date until 8/31/2011, outperforming the S&P 500 Index by +2.32%. The fund's performance was 4.39% above the performance of HFRX Global Index for the period.  

The Salus Alpha RN Special Situations had a performance of -7.71% for the year to date until 8/31/2011.  

The Salus Alpha Managed Futures had a performance of -0.03% for the year to date until 8/31/2011, outperforming the S&P 500 Index by +3.05%. The fund's performance was 0.41% better than the performance of the HFRX Macro Index for the period.

NEWS - 10

Salus Alpha products outperform equity markets

Aug 15, 2011, 

In the current quarter, all Salus Alpha Funds  outperformed global equity markets in what has been a difficult environment. Salus Alpha Managed Futures led the way with a gain of 4.89% in the current quarter, while the US S&P 500 Index lost 2.15%, and the German DAX30 index declined 2.95% in the same period.

The 24 month rolling alpha of Salus Alpha Managed Futures compared to the S&P500 is 5% p.a, while the 24 month rolling beta is currently 0.2. This implies that in the past 24 months, the fund had a return of approximately 5% due to active management (alpha), and 0.40% return due to the positive market beta. The fund's performance was 4.50% better than the performance of the HFRX Macro Index for the period.

The CTAs, Global Macro and FX Managers in the Salus Alpha Managed Futures portfolio profited by continuing trends in Softs, Precious Metals, Industrial Metals, Financials, FX, Energy and Interest Rates.

The Salus Alpha Directional Markets had a performance of +4.64% for the month to date, outperforming the S&P 500 Index by 6.79%. The 12 month rolling alpha of Salus Alpha Directional Markets to the S&P500 is 4% p.a., the 12 month rolling beta is currently 0.2. The performance of Salus Alpha Directional Markets was 2.34% better than the performance of HFRX Systematic Diversified Index.

The Salus Alpha Multi Style had a performance of +3.92% for the month to date, outperforming the S&P 500 Index by 6.07%. The fund's performance was 4.05% above the performance of HFRX Global Index for the period.

The Salus Alpha Equity Hedged had a performance of 0.76% for the month to date, outperforming the S&P 500 Index by +2.91%. The 12 month rolling alpha of Salus Alpha Equity Hedged to the S&P500 is 8% p.a., the 12 month rolling beta is currently -0.2. The Salus Alpha Equity Hedged currently has a 40% exposure to Long Bias, 23% to Market Neutral, 7% to Long Short Variable Bias,  and 30% to Short Bias.

The Salus Alpha Event Driven had a performance of +0.74% for the month to date, outperforming the S&P 500 Index by 2.89%. The 12 month rolling alpha of Salus Alpha Event Driven to the S&P500 is 4% p.a., the 12 month rolling beta is currently -0.1. This implies that in the past 12 months, the fund had a return of 4% due to active management (alpha). The fund's performance for the period was 1.26% higher than the performance of the HFRX Event Driven Index.

The Salus Alpha RN Special Situations had a performance of +0.09% for the month to date, outperforming the S&P 500 Index by 2.24%. The fund's performance for the period was 0.61% higher than the performance of the HFRX Event Driven Index.

The Salus Alpha Real Estate had a performance of -0.02% for the month to date, outperforming the EPRA / NAREIT Index by +1.97%. Salus Alpha Real Estate is a single manager single strategy fund, which invests according to Salus Alpha’s proprietary Global Real Estate Model. The Salus Alpha Real Estate outperformed the EPRA/NAREIT Real Estate Index by 1.97% during the month of July. The current volatility in the Real Estate markets is above the model’s risk threshold. The fund therefore has no allocation to equities and is invested exclusively in risk neutral assets.

The Salus Alpha Commodity Arbitrage had a performance of +8.71% for the year to date until 7/29/2011, outperforming the S&P 500 Index by 5.96%. The fund outperformed the S&P GSCI Index by 0.12%, which booked a gain of 8.59% in the reporting period. The 12 month rolling alpha of Salus Alpha Commodity Arbitrage to the S&P500 is 8% p.a., the 12 month rolling beta is currently 0.0. This implies that in the past 12 months, the Salus Alpha Commodity Arbitrage had a return of approximately 8% due to active management (alpha), and 0.01% return due to the positive market beta. The performance of Salus Alpha Commodity Arbitrage was 12.70% better than the performance of HFRX Systematic Diversified Index.

Salus Alpha Commodity Arbitrage tracks the CAX - Commodity Arbitrage Index. The CAX Index covers the performance of arbitrage strategies, which aim to extract consistent market neutral returns from valuation inefficiencies arising among related commodities - like for example Brent Crude vs. WTI Light Sweet Crude - or among different maturities of futures contracts on one commodity due to Contango, Backwardation and Seasonality.

The SA FX Strategies had a performance of -0.67% for the month to date, outperforming the S&P 500 Index by +1.48%. The FX Managers in the SA FX Strategies Portfolio profited by the USD's weakness vs. Russian Rouble, Norwegian Krone, Canadian Dollar, Australian Dollar, Swedish Krone, British Pound, Swiss Franc, Singapore Dollar, Mexican Peso, Polish Zloty and Brazilian Real. The managers incurred losses due to the Dollar's strength vs. New Zealand Dollar, and due to the USD devaluation vs. Euro, Japanese Yen and Danish Krone.

Salus Alpha Group

INTRODUCTION

Salus Alpha Group AG better known as '''Salus Alpha''' was founded in 2001, headquatred at Zug Switzerland. Has established a reputation as world leader in daily liquid UCITS alternative investments.

Salus Alpha Group AG is the holding company of the individual Salus Alpha entities world wide. The Group is specialized in Wealth and Asset Management for institutional investors, and High Net Worth Clients. For retail investors Salus Alpha Direct is the first online platform for investing in hedge funds.

The key to it's success is it's organizational structure and above all it's global presence, whereby it is able to guarantee direct contact to the client and short reaction time to changing market environments.

ABOUT COMPANY

Salus Alpha Group AG is the holding company of the individual Salus Alpha entities. Salus Alpha was founded in 2001 with the vision of merging the tenfold larger traditional fund world with the alternative investment fund world.

As pioneering firm in UCITS compliant Hedge Funds. Salus Alpha is motivated by the need to provide exceptional solutions to meet investors’ requirements for liquidity, safety of assets and market independent attractive returns. It's Hedge Fund structures with daily liquidity are unmatched till today. This Group engages in wealth and asset management for high net worth individuals and institutional investors and provides tailored solutions for clients and their financial needs.

Salus Alpha’s exceptional innovation potential is demonstrated by a list of worldwide groundbreaking developments such as launching the world's first UCITS eligible Hedge Fund Indices or implementing the first UCITS Hedge Funds with daily liquidity. The Group’s current revolutionary project is the launch of the first online platform for retail investors to invest in Hedge Funds. 

The Group’s commitment to investment management, wealth administration and risk management is supported by experts in various fields such as investment analysis, fund management and fiscal law. Through their combined knowledge and expertise they have identified the urgent need to provide customized and enhanced investment products for it's clients.

Founded in Europe the Group expands currently globally with offices in Dubai, Singapore, Hong Kong, Taiwan, Japan, Columbia, Peru, Chile and South Africa to facilitate local presence and relationships. Bringing Hedge Funds to the traditional fund space produces enormous growth potential and by exporting it's knowledge into the global market it is totally committed to ensuring that it's exceptional investment solutions will revolutionise the traditional fund world.

KEY PEOPLE

Oliver Prock

He is CEO and CIO of Salus Alpha Capital Ltd. He graduated from Vienna University of Business and Economics with an MBA and has gained experience in different investment fields such as financial engineering, product development, trading and sales. He started his career working for an American CTA. Later on, he was in charge of derivatives and structured products at Raiffeisen Zentralbank AG.

Before becoming CEO of Salus Alpha, he worked at Erste Bank, where he was responsible for the development and the management of alternative investment products of Erste Bank. Mr. Prock has gained over 15 years of professional investment experience working for banks and investment companies in Austria and abroad.

As CEO and Fund Manager he has achieved important successes in the past years in the field of alternative investments, as for instance the introduction of the first world-wide the UCITS III compliant alternative investment fund "Salus Alpha Equity Hedged". Also, the successful development of the alternative investment indices listed on the Viennese stock exchange was realized under his management.

Furthermore, Mr. Oliver Prock is founding member and chairman of the board of the association "Vereinigung Alternativer Investments" (VAI). Founded in 2003, this association is the first independent agency for protecting and representing the interests of the providers of alternative investment products on the Austrian capital market.

Apart from providing support to the members in all areas, the VAI regards the increase of popularity of alternative investments and the improvement in the understanding of these investment vehicles as one of its major tasks. In addition, the VAI tries to increase the attractiveness of Austria as the investment location for alternative investments through various measures.

Günther Schneider

He is the Head of Global Business Development of Salus Alpha Capital Ltd. He graduated from Vienna University of Business and Economics with a Master in Business Administration.

Before becoming a member of Salus Alpha he had worked as Chief Investment Officer of Skandia Austria and as a Member of the Board of Skandia Austria Holding AG. Prior to that, he was in charge of Fixed Income Securities at the Raiffeisen Zentralbank AG.

With his previous work experience and his contacts, Mr. Schneider plays an important role in raising awareness for our innovative products in the European market. Mr. Schneider has gained exceptional professional investment experience for over 20 years, while working in different investment fields for banks and investment companies in Austria and Europe.

AWARDS

Since its foundation, Salus Alpha’s success has been recognized in the industry and acknowledged by awards for excellence and expertise in the field.

* Winner Most Innovative Hedge Fund for Salus Alpha Event Driven Fund at the HFR European Fund of Hedge Funds Awards November, (2010)

* Special Award Alternative Investments Award of Geld-Magazin  DMX - Hedge Funds Directional (2010)

* Winner Alternative Investments Award of Geld-Magazin  Event Driven Index - Hedge Fonds, Directional (Vola <10), 5 Years Performance (2010)

* Winner Recognition Award for Excellence, BarclayHedge  Salus Alpha Multi Style - Fund of Funds Diversified, April (2010)

* Winner Recognition Award for Excellence, BarclayHedge  Salus Alpha Event Driven - Fund of Funds Distressed Securities/Event Driven, February (2010)

* Winner Alternative Investments Award of Geld-Magazin  Extraordinary good performance for DMX (2009)

* Winner Real Estate Fonds Ranking  Salus Alpha Real Estate best YTD Performance (2009)

* Highly Commended Aktienservice Research  Salus Alpha Real Estate named as Highly Commended Real Estate Fund (2009)

* Winner Aktienturnier des BoerseExpress  DMX beats german and austrian stocks (2008)

GROUP COMPANIES

Salus Alpha Capital Ltd.

Oversees Asset Management and Portfolio Management.

Salus Alpha Financial Services (Europe) Ltd.

Oversees distribution of Salus Alpha products to investors in Europe.

Alternative-Index Ltd.

Is the provider of Alternative Investment Indices for the group.

Salus Alpha Group Services Ltd.

Is responsible for marketing activities, Public Relations and Human Resources matters for the whole group .

Salus Alpha Europe BV.

Oversees European Distribution and Client Relations.

Salus Alpha Financial Services (SG) Pte. Ltd.

Oversees distribution of Salus Alpha products to institutional investors in Southeast Asia.

Salus Alpha Financial Services (HK) Ltd.

Oversees broking of Salus Alpha products to institutional investors in Asia.

Salus Alpha Financial Services (UAE) Pte. Ltd.

Oversees distribution of Salus Alpha products to institutional investors in the Middle East.

Salus Alpha Information Technologies Pvt. Ltd.

Is the center for IT development and support for the group.

Salus Alpha Research LLC.

Primarily deals with Contact initiation with Hedge Fund Managers.

Salus Alpha Financial Services Nordic.

Oversees distribution of Salus Alpha products to investors in the Nordic Region.

PRODUCTS

UCITS Funds

Undertakings for Collective Investment in Transferable Securities (or "UCITS", pronounced "yoo-sits") are a set of European Union Directives that aim to allow collective investment schemes to operate freely throughout the EU on the basis of a single authorisation from one member state. In practice many EU member nations have imposed additional regulatory requirements that have impeded free operation with the effect of protecting local asset managers.

Structured Products

In finance, a structured product, also known as a market-linked product, is generally a pre-packaged investment strategy based on derivatives, such as a single security, a basket of securities, options, indices, commodities, debt issuances and/or foreign currencies, and to a lesser extent, swaps. The variety of products just described is demonstrative of the fact that there is no single, uniform definition of a structured product. A feature of some structured products is a "principal guarantee" function, which offers protection of principal if held to maturity. For example, an investor invests 100 dollars, the issuer simply invests in a risk free bond that has sufficient interest to grow to 100 after the five-year period. This bond might cost 80 dollars today and after five years it will grow to 100 dollars. With the leftover funds the issuer purchases the options and swaps needed to perform whatever the investment strategy is. Theoretically an investor can just do this themselves, but the costs and transaction volume requirements of many options and swaps are beyond many individual investors.

Hedge Fund Indices

Hedge fund indices have to fulfill the three basic criteria to become UCITS III eligible – sufficient diversification, ability to serve as an adequate benchmark and appropriate publication. The indices provide an investable benchmark with daily liquidity that represents the risk and return of the various investable Alternative Investment Strategies. All our indices target to offer investors an unbiased reference of the performance of alternative asset classes.

Portable Alpha

Portable Alpha is an investment management term, which refers to the return of an investment manager who has completely eliminated his market risk (beta), through the use of derivatives (e.g. futures, swaps, options). In simple terms, this is a strategy that involves investing in areas that have little to no correlation with the market.
 
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EXTERNAL LINKS

Salus Alpha Group

Alternative Index
Salus Alpha Capital
Salus Alpha Group Services
Salus Alpha - Hong Kong
Salus Alpha - Singapore
Salus Alpha - Dubai
Salus Alpha Information Technology Ltd.
Salus Alpha - Nordic