we think the market is ready to pause

for profit taking. We do however still

feel that the momentum we have

experienced lately will continue with

the support from the good key figures

from the U.S, especially the continued

positive development in the U.S labor

market. Since 2009 the U.S economy

has created more than 4million new

jobs. With a continued labor market

like this we will most likely see a

stronger GDP growth than forecasted

and very soon bring us back to the

level before 2008 crisis. For this to

come true, 8 million jobs must be

created in the coming years. Most new

jobs it seems are being generated in the

service sector. This is good news as

most of this income will generally be

spent on consumption. So if we see

continued strong development in the

U.S key figures we will find a strong

driver for the continued development

for 2012.

With the Greek bond swap done re-

cently, we hopefully will see a reduc-

tion in the risk scenario in Greece and

therefore the market in general. Look-

ing forward, we will as usual, keep a

close eye on developments in Europe.

We are at present, witnessing a much

higher oil price, but we feel comfort-

able as long as it trades below the 150

USD mark. We see this as a very bad

thing for the return of growth in the

world in general.

With regards to China, we have re-

cently seen signs of a slowdown in the

growth expectation. The Chinese gov-

ernment has been out with the latest

GDP figures for 2012 revising down to

7.50%. This is still very high and it is

The global stock markets have had a

very strong performance off the back of

the wise move by the ECB in late De-

cember 2011 of offering 3 year loan

facilities to banks. This move took out

a lot of the uncertainty within the

financial markets. This has made room

for a rally in the stock market, not seen

for many years.

Banks have taken advantage of this

opportunity twice now, using a part of

their assets to buy bonds in peripheral

Europe, pushing down the yields and

thereby again bringing hope and sup-

port for a long term possibility for

peripheral Europe to survive the big

challenges in front of them.

At the same time the EU has agreed to

put in force new regulations regarding

budget discipline. This will enable the

EU to punish countries that are not

living up to these new standards. This

of course does not fix the short term

problem, but will in our minds, create

measures to prevent the recent situa-

tion happening again .

The EU has also agreed to work hard to

find a solution for reducing the high

unemployment rate. This will be done

with reforms, which of course, is of

significant importance especially in

Spain, Italy and Greece, where there

has been a very old regulation for the

labor market in general. However,

these reforms need to be implemented

across the board so that they can at-

tract new business without losing it to

the Emerging markets. Governmental

cuts and saving measures are not nec-

essarily the problem solver in the long

run, but supporting and stimulating

the growth story by helping smaller

businesses. Employing more workers

will bring in much needed revenue to

the local governments. At the end of

March another summit with the EU

leaders will be held, the subject here

will in our opinion, be to build the

firewalls to secure stability in the EU

zone. Germany has for a long time

been against this, however a bigger

firewall in the EU will most likely be a

market driver, and it is our expectation

some agree-

ment will be

struck to

secure the

stability.

With this we

could easily

be positive

on a higher

equity mar-

ket and

higher

yields.

As we write

this article,

2012 - THE BEGINNING?

Inside this issue:

OUTLOOK Continued 2

STRATEGY 2

STRATEGY—CURRENCY 3

STRATEGY—STOCKS 3

STRATEGY—STOCKS

Continued

4

STRATEGY— BONDS 4

ALPHACAPITA LAUNCHES

NEW SERVICES 5

APRIL 2012 NEWS LETTER

“Latin market and a new player in the

AlphaCapita Oil sector ”

Outlook

important to remember

that the Chinese government has not yet succeeded in

getting their figures correct. We have until now,

always ended seeing a revision to higher levels. With

this in mind and in the knowledge that in 2011 the

government came up with new measures to reduce

growth, the Chinese government it seems, has a lot of

tools to instigate growth if needed. As the world’s

second largest economy, it is important that China

continues to grow at these high levels, but in a con-

trolled manner. We still feel at ease with the outlook

for China, noting that growth in India lately has also

been very impressive, so China is not alone in sup-

porting the worlds growth scenario.

Q1 has resulted in a quarterly return off 4.35% on our

balanced strategy, 4.7% on the conservative strategy

and 15.78% on our Equity strategy. The portfolio has

been up and running for three years now and has

delivered an average of 6.48% Per annum net of all

costs. Our target from the beginning has been to

generate a return between 5 % - 8% p.a. with the

emphasis on maintaining low volatility whilst gener-

ating steady and constant returns over the long term.

Therefore we are very pleased with the results, as this

just underlines that our strategy of always being invested and keeping our discipline in our asset allocation is correct. This

strategy has paid off for us, as we are now seeing others that sold out of equities who have not yet recovered their last year's

figures.

At the end of the last quarter and in the beginning of 2012, we used some of our cash to allocate more into the equity market.

We have added a bit more into the financial positions and added "Nokia" to the portfolio . We also added two new corporate

bonds ,bringing us to an asset allocation of 40% equity and 29% on the corporate bond side. Leaving our cash holdings under

5%.

We do in general feel secure about the market. Yes, there are still issues to be sorted out, but it is our expectation that most of

the issues will duly be dealt with. Likewise we see that hedge funds and other players in the financial markets have missed out

on the rally at the beginning of the year. Closing in on the first quarter a part of this cash from hedge funds has to be invested

for them to show they have taken part in the

rally. We have seen some attempts to pull the

market back, but still on very low volumes which

just goes to show that the market is still in an

uptrend.

We still prefer stocks with a good dividend yield

and high cash flow, but with our move more into

financials and other growth stocks we demon-

strate our belief that this year will be growth

focused rather than defensive. The recent oil

price has been pushed up by the uncertainty

regarding Iran, development of which, will no

doubt put a short term pressure on the oil price.

As long as we keep prices under 120 USD mark

we feel okay in our opinion. To protect us against

a much higher oil price and a possible pull back

in the equity market we are considering allocat-

ing more oil stocks or entering into protection

through the derivatives market.

Page 2

“Chinese

government has

not yet succeeded

in getting their

figures correct”

“prefer stocks with

a good dividend

yield ”

Strategy

Outlook Continued

We have sat very much on

our hands in regards to an

active role within the "Spot"

currency market over this

last quarter. The USD has

traded within a defined

range against EUR, we do

however still expect a

stronger USD and feel this

view is well supported by

the very good key figures

from US. We therefore still

keep our weight with 25%

USD exposure.

Mid February we added a

small position Long

EURCHF. We did this at a

level 1.21 with the expecta-

tions that over the year 2012

the CHF will weaken as the

tension in the EU eases.

Likewise with the SNB floor

at 1.20 we feel secure to

hold this position for a

longer period of time. The

fundamentals behind this

thinking are the same as we

have said time and time

again, meaning the level in

which the CHF is trading

currently will not be able to

be sustained due to the

realistic undermining of the Swiss economy. We feel that this is a good long term investment case with a very attractive risk reward premium. Our 12 month target is to get

EURCHF back over the 1.25 level and here after back to 1.30.

Page 3

In Q1 we took profit once again in BMW, with a 3 month return of 20%. Our reasoning here, was not that we did not believe in the BMW growth case anymore ,but more a

question that the stock has had an impressive performance over a very short period of time. We have now been into BMW three times and have managed to exit every time

with a very attractive return. We still very much like the story and expectation for BMW in the future and will be looking for a new entry point for this stock in the next

month or so.

After following Nokia for a long time we

decided to allocate to them after their full

year earnings release. Nokia is one of the

biggest producer of mobile cell phones in the

world. Nokia has for a long time been living in

the shadow of Apple, Samsung, and HTC on

the smart phone market. They have focused

on the cheaper end of the communication

sector, therefore their earnings have been less

comparable with the high end.

At the end of last year, Nokia introduced their

new smart phone "Lumina", which has been

received with a lot of positive attention and

was praised as one of the best in the market

right now. At the latest mobile exhibition in

Barcelona beginning of March 2012 they pre-

sented the follower to "Lumina". Nokia is still

targeting the lower end of the smart phone

market with a price 190 USD in compassion to

Apple at 400-500 USD. We believe that by

ON STOCKS

ON CURRENCY

“Chart showing EURCHF with 200

day moving average”

“Chart showing BMW ”

As mentioned in our earlier newsletters we have been in-

vested in variable bonds and placed an allocation in an ETF

which tracks the 20 years US t-bond. This investment, as

mentioned in previous newsletters, has not yet played out in

a satisfactory way. We continue to hold this position as it is

our belief that the market will very soon start to react to the

good key figures, although the FED and other official have

stated that key interest rates will be kept low for an extended

period of time to support the growth, and there will be a

return to rate hikes over the long term.

As mentioned in our strategy write up, we have entered into

two new corporate bonds. We have bought 4.75% Exportfi-

Page 4

ON STOCKS CONTINUED

ON BONDS

focusing on the lower end of the

Smartphone market, Nokia is

well positioned to sell into the

emerging market sector. The

figures on Nokia shows us a

very good value company. One

of the key figures we are looking

at is price to sale ratio which in

this case is under 0.75. With a

new CEO focusing on disband-

ing none core business, a fur-

ther corporation with Microsoft,

and a new phone introduction

we believe Nokia has a strong

case to turn very profitable

again. We likewise will not be

surprised if Microsoft gave a bid

for Nokia as their cash balance

is very big and this could be an

interesting fit for Microsoft in

their battle again Apple. If

Nokia can continue to generate

a high free cash flow and good

operational turnaround, the

company has a possibility to be

a real winner in the sector. We

brought the first part of Nokia

at a price 3.86 EUR.

nans June 2013 and 4.878% Danske Bank perpetual with a call option

in 2017. Both bonds are EURO nominated. Since we entered the bonds

have earned a profit of 1% to 5% without accrued interest.

For both positions we feel we have a very good investment case. Ex-

portfinans is a Norwegian company partly owned by the Norwegian

government which is arguably the healthiest economy in the world

today. We have a yield at 4.9% with a duration of 1.3 year. Danske

Bank is the largest bank in Denmark and one of the biggest in Scandi-

navia. Danske Bank has had problems with big losses both in Den-

mark, but mostly in Ireland. It is our clear expectation that with the

new CEO, Ejvind Kolling former chairman of the board and CEO of

Maersk line, Danske Bank is set for a more

profitable future with higher credit ratings

as a natural outcome. Danske Bank is giving

a yearly yield at 8% (calculated on the call

in 2017) and an duration of 5.3 years. To-

day’s credit rating for Exportfinans is BBB+

and Danske Bank is BBB-

For our total bond portfolio today our

clients are having a yearly yield at 4.7%

average and duration of 2.9 years. As we

believe there will be a higher yield in the

coming years we are focusing to have as low

a duration as possible but still maintaining

an average yield of around 5% per annum.

“For both positions

we feel we have a

very good

investment case”

“Chart showing Nokia ”

AlphaCapita SA has been working hard

to expand its broader advisory capabili-

ties and provide a broader platform for

its “trusted advisor” positioning with

clients and we are pleased to announce

that Simon Evans an English barrister

with over twenty five years experience

in the offshore world has joined the

team.

AlphaCapita SA can now advise clients

on the optimal holding structure for

existing and new acquisitions across all

asset classes and geographies. The

structures can be engineered to ensure

tax efficient; confidential and con-

trolled transfer of assets across multi-

generations of a family.

The age old adage of “rags to rags in

three generation” is one that still holds

Disclaimer

None of the information contained herein constitute an offer to purchase or sell a financial instrument, or to make any investments. AlphaCapita (Switzerland) SA does not take into account your personal invest-ment objectives or financial situation and makes no representation and assumes no liability to the accuracy or completeness of the information nor for any loss arising from any investment based on a recommen-dation, forecast or other information supplied from any employee of AlphaCapita (Switzerland) SA, third party, or otherwise. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of AlphaCapita (Switzerland) SA.

AlphaCapita (Switzerland) SA

Balsberg

CH-8058 Zurich-Airport

Switzerland

Phone: +41 43 813 3020

E-mail: info@alphacapita.com

web : www.alphacapita.com

AlphaCapita (Switzerland) SA

true today and the inability to pre-

serve wealth is generally not associ-

ated with bad investments or taxes

although both these factors can play a

significant role in wealth dissipation;

but more to do with poor governance

and poor asset protection.

The risks to wealth take many forms

and the most successful families seek

to identify, manage, price and plan

against these risks by ensuring that

asset protection is foremost in their

thinking.

The judicious selection of legal vehi-

cles and jurisdiction as well as an

advisor who is well versed in cross

border generational planning is as

important today as it ever was. SA's

newly enhanced capabilities to work

with our clients to achieve the optimal

asset holding and transfer strategy now

compliments our asset management

capabilities in a way that can provide a

one stop service that includes not only,

advice on how to design the architecture

of a strategy, but also its execution and

ongoing management through its own

trustee and corporate management

service.

Providing the legal framework that

accommodates all client assets also

facilitates a consolidated reporting and

management structure that is the key to

transparency, cost management and risk

sensitive performance attribution with-

out which investors cannot hope to

navigate the investment landscape

effectively.

AlphaCapita Launches new services

Simon Evans - After qualifying as a barrister,

Simon joined the HSBC group and worked as

a banker on their international division for six

years in Hamburg, Qatar, Bahrain, Egypt,

India and Hong Kong.In 1989 he focussed on

private client tax and trust work with Citi-

group where he was general manager of their

trust company in Zurich.

In 1991 Simon returned to Hong Kong when

he joined JP Morgan as head of Asian wealth

advisory where he remained until he joined

Goldman Sachs London to establish their

global wealth advisory practice. He was then

asked back to JP Morgan London where

Simon was head of wealth advisory for Asia,

the Middle East and UK onshore. During this

time developed and expanded the bank’s capa-

bilities by advising families in the field of family

office establishment and administration. Simon

left JP Morgan to found Nean Wealth Advi-

sors in 2002.

Nean Wealth Advisors is a boutique multi-

family office that provides a range of wealth

preservation and governance solutions to fami-

lies from Asia, the Indian sub-continent and the

Middle East who face generational, tax and

wealth transfer challenges across geographies

and all asset classes

ON SIMON