|
Trend-tracking system generates asset growth despite crisis
15% performance with international investments since start of 2008
No forecasts are the best policy
Frankfurt am Main, Dec 7, 2009 (mpr) - Investors in the TrendConcept Multi-Asset Allocator fund (MAA, ISIN LU0225766055), a retail fund established under Luxembourg law by Hauck and Aufhäuser, which is advised by TrendConcept Vermögensverwaltung GmbH, Frankfurt and Wiesbaden, Germany, have not felt the adverse effects of the present crisis. In fact, since January 1, 2008 they have seen their assets grow by more than 15%. As a brief reminder: this period included one of the biggest ever crises in the financial system with a massive knock-on effect on the real economy
However, the TrendConcept MAA fund, which uses a combination of a managed futures strategy and trend-tracking systems, has come through the crisis well. At the heart of the strategy are three parallel trend-tracking systems which aim to make profitable use of computer-based information on medium to long-term trends on the futures markets. The TrendConcept MAA fund simultaneously analyses 25 markets dealing in futures on equities, bonds, foreign exchange, commodities and the money markets. The fund can benefit from either rising or falling prices.
Trend-tracking trading systems tend to generate the best results when there are pronounced, longer-term trends (even if they involve higher volatility). That was the case, for example, for DAX and oil futures in 2008. The MAA fund’s 14.43% performance in 2008 shows that strict implementation of the signals generated by the trading systems while eliminating subjective decisions makes sense.
“The point is not that our forecasts were more accurate than those of other fund managers. Quite simply: we do not believe in forecasting. Instead, we stoically follow all instructions issued by our trend-tracking systems,” explains Caspar von Zitzewitz, one of TrendConcept’s five founders and managing directors. He and his colleagues see their role akin to Ulysses’ companions who put wax in the ears so they could row without distraction. They compare their customers with Ulysses: they can hear the song of the sirens but remain firmly bound to the central mast to prevent them responding to their call.
Security has its price
2009 has shown that managed futures strategies cannot turn every trend into a positive performance. The trend structure in 2009 has been very different from 2008 according to Zitzewitz. Despite a number of strong movements on the global equity markets and some commodity markets, these have been equally frequently interrupted by strong trend reversals. As a result stop-loss points have frequently been hit, leading to the closing out of positions.
Volatile sideways trends are also unfavourable for managed futures strategies – as seen for example with the oil future, which has fluctuated between USD 60 and USD 80 this year.
Even though market conditions have been difficult for this class of investment in 2009, the TrendConcept MAA fund has managed to escape the predominant trend among managed futures strategies and has achieved a positive year-to-date performance of 0.63%. “However, the weak performance in 2009 is not really important,” says Zitzewitz. “While investment funds lost 50% or more during the crisis, we protected our customers’ assets. Anyone who has lost 50% of there capital needs a 100% improvement simply to regain their initial investment. And that is not realistic, even in the medium term.”
Equity funds now fully invested
TrendConcept’s security-oriented investment approach can also generate above-average returns on equity investments, as demonstrated by the development of its equity products (e.g. TrendConcept Universal Fonds Aktien Europa). Management of these funds is also based on a proprietary technical/quantitative analysis system which monitors upticks and downticks in equity prices to show which should be bought or held in the portfolio during upward trends. As soon as the system indicates an interruption of the trend, the securities are sold and the proceeds are invested safely in the money market.
“We shifted out equities and into other investment classes in February 2008,” reports Zitzewitz. A slight underperformance relative to the benchmark indices in strongly bullish equity markets is inevitable but preserving the capital base can result in an impressive YTD performance by TrendConcept equity products (around 11% for the TrendConcept Universal Fonds Aktien Europa). The main reason for this is that the TrendConcept trend-tracking systems raised the level of investment in equities during 2009. “Our equity funds have been 100% invested since August,” reports Zitzewitz.
Market leader in trend-tracking systems
TrendConcept regards itself as the market leader in trend-tracking systems “and they are suitable for everyone: for example, as a base investment for conservative private investors saving for their retirement or who want to protect their assets. A significant, performance-oriented weighting is also a vital part of asset allocation by pension funds, life insurers, family offices, foundations, banks and asset managers.” TrendConcept recommends investing 25-50% through trend-tracking systems. This can be increased if this is warranted by the desired level of security.
Experience dating back to 1989
The TrendConcept team has been working with trend-tracking systems for the benefit of private and institutional investors since 1989. Zitzewitz explains that some of the founders have worked together on research and development since the early 1980s. The team’s long-term collaboration with renowned customers has always centred on a robust custom-tailored investment approach. TrendConcept is independent of banks and manages segregated assets for private and institutional clients via investment funds. That ensures a high degree of security for the assets invested.
Publication free of charge. Please send a copy to mpr. Online version
and illustrative material available from www.mpr-frankfurt.de/trendconcept
Contact for press-related
questions:
Dipl.-Volkswirt
Michael Kip
mpr marketing public relations promotion
Bockenheimer Landstr. 17/19, DE-60325 Frankfurt am Main, Germany
presse@mpr-frankfurt.de,
www.mpr-frankfurt.de
Tel. +49 69 71 03 43 45, Fax +49 69 71 03 43 46
Photo:
By clicking the photo with the right mouse button you can download the
picture in high quality.
Caspar von Zitzewitz, one of five executive directors of TrendConcept
Vermögensverwaltung GmbH
photo: TrendConcept, publication free in connection with reporting on
TrendConcept.
answering
coupon
Please return by Fax
+49 69 71034346 or mail
or E-Mail to presse@mpr-frankfurt.de
mpr
marketing public relations promotion
Bockenheimer Landstr. 17/19
60325 Frankfurt am Main
Germany
TrendConcept - MAA
( ) Please send a
text file of the press release to:
( ) Photo of Caspar von Zitzewitz
( ) Fact Sheet on the TrendConcept Fund Multi Asset Allocator
Please update your
mailing list as follows:
( ) Please add this address to the TrendConcept mailing list.
From:
Publication:
Editor:
Contact:
Street/P.O. Box:
Post code/Town
Phone:
Fax:
Email: |
