Bearer bonds
“Bearer securities” are definitive paper securities which state they are payable to “bearer” on their face at maturity or at call for redemption before maturity in accordance with their terms. The ownership is not recorded, because bearer bonds are bonds that are owned by whoever is holding them, rather than having registered owners like most other securities. Like most other bonds, they have a stated maturity date and interest rate, but coupons representing interest payments are generally physically attached to the security and must be submitted to the company for payment. In this way, bearer bonds are different from most other bonds, which aren’t physically issued anymore, but instead exist on the computerised records of brokers and custodians.
Bearer bonds are easily transferable, easily negotiable and anonymous, and in certain circumstances, they have distinct advantages over other forms of currency, such as cash:
1) Since bearer bonds can have extremely high values, a physically manageable number of them can represent a huge amount of cash;
2) A bearer instruments differ from normal registered instruments, in that no records are kept of who owns the underlying property, or of the transactions involving transfer of ownership. Whoever physically holds the bearer bond papers owns the property. This is useful for investors and corporate officers who wish to retain anonymity.
Additionally, the bearer bonds issued by Blue Topaz are purchased through an escrow agent, on behalf of an offshore entity established in favour of the client, who is beneficial owner of the funds invested in bonds. No direct money transfer is made between the client and the issuer of bonds, thus providing additional layer of privacy.
Bonds issued by Blue Topaz are regulated by law of one of European Union countries and all disputes concerning Blue Topaz bonds are not subject to jurisdiction of any offshore courts, but they shall be resolved under jurisdiction of London Court of International Arbitration (“LCIA”). The LCIA is one of the longest-established international institutions for commercial dispute resolution. It is also one of the most modern and forward-looking.
Considered as a financial instrument Blue Topaz bearer bonds seek to deliver consistent positive risk-adjusted returns throughout market cycles, with a strong focus on risk management and capital preservation. Portfolio composition is determined by market opportunities rather than any predetermined commitment to investment discipline or geography.
Our diversified, multi-strategy approach is based on global investment strategies, including merger arbitrage, convertible arbitrage, equity restructuring, credit and distressed investments, private investments and real estate. Performance, stability, service and flexibility are key to attracting and retaining investors. We aim not only to eliminate correlation with the equities market, but even to achieve negative correlation and deliver returns in falling markets. We pursue positive returns with less volatility over time, largely independent of market direction.
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