Absolute Return Pension Fund
Management Style / Category
- Direct single-strategy Absolute Return Pension Fund.
- The aim of the Fund is to protect and maximise its assets. The Fund uses proprietary management tools, developed entirely by GVC Gaesco Gestión, S.G.I.I.C.. These tools have been systematised and optimised over 18 years of backtesting (December 1988 to December 2006).
- The Fund turns the momentum of equity markets to its advantage, investing more as markets become more bullish (High Sharpe Ratio), and divesting as they are downgraded, i.e., when the reward to volatility ratio is no longer attractive (Low Sharpe Ratio).
- The investment process is clear and disciplined, making the best use of many year's market experience, and trying to distinguish between structural movements and those that that can be classified as normal market noise, avoiding at all times the danger of being swayed by emotions.
- The Fund distributes investments into two categories: risk-free assets (Fixed Income ETFs and Monetary Market) and risk assets (Funds and Equity ETFs), depending on the prevailing situation in each market. The level of investment in each category is extremely wide-ranging (0% - 100%), giving the fund considerable flexibility and speed to adapt to market variations. Several factors are considered before investing: equity currency and the monetary market:
- Equities: The Fund carefully selects a number of worldwide Equity Markets in which to invest a variable percentage of its assets both individually, in each type of equity instrument, and globally in terms of the extent of the Fund's exposure to equity, which varies over time.
- Currencies: It weighs up the fact that, although it invests in Equity Markets worldwide, fund holders operate in euros. This means that fund managers can optimize the euro risk/return ratio.
- Money Market: This is the Fund's alternative market in which it invests when no Equity Market opportunities are available.
- Euribor 1 week (compounded annually) plus 200 basis points.
- Patrimonialista, FP is intended for those investors with a conservative/moderate risk profile, seeking to obtain a return regardless of the performance of the financial markets. They will therefore be able to tolerate fluctuations in equity arising from the financial markets volatility. However, given the Fund's objectives (asset protection and performance stability and optimization), the annualized volatility will not be higher than 6% under normal market conditions.
|THE FOLLOWING PENSION PLAN IS ATTACHED TO THIS FUND|| |