Exploit opportunities - Limit losses
Trend-following funds exploit the opportunities presented by rising stock markets, while limiting losses during phases when the stock markets are falling. This is because trend-following funds are flexible, investing in the countries and sectors with the best prospects for returns. In phases when stock markets are falling, investments are shifted to more secure funds and safer investment positions with the aim of limiting larger losses.
Overview of our trend-following funds
The crux of our trend-following approach
Proactive adjustment of equity allocations plays a crucial role in our trend-following funds. Positioning of the fund is highly flexible and continuously adapted to the financial market situation.
When the markets are rising, the equity exposure is gradually increased to the maximum weighting in the fund. This equity allocation is then invested in those countries and sectors where a positive trend has been established and the best performance is expected.
In a falling market, the equity weighting and thus the risk level is reduced. In phases when stock markets are falling, the fund gradually switches to secure investments with the aim of limiting losses.
Human emotions are responsible for many a poor investment decision. Fear of making a loss or euphoria in striving for gains define our actions. For this reason, we use a computer-aided trading system to select the funds for our trend-following strategies and solutions. The trading system does not know why the price of a given equity is rising or falling – but it is highly adept at immediately recognising upward or downward trends like these, tracking them in the blink of the eye, and participating in price movements. The system filters the most promising securities from around 10,000 different investments – free of any emotional interference!
Brief explanation of trend-following funds (in German)
Trend-following funds for every investor
The right investment solution for every position
Investing in trend-following funds is a bit like a game of soccer. Success relies on having the best players in the right positions on the field. Likewise, with our trend-following funds, you have the choice of three different approaches as: a defensive expert, a midfield strategist, or a top striker.