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Active Beta Opportunities Strategy

Multi Asset Boutique

Investment objective*

This absolute-return-oriented multi-asset strategy aims to participate in rising markets and achieve steady value growth in the long term with a balanced risk profile at a target volatility of 7%.

Key features

The strategy invests worldwide mainly in equity, government bond, commodity, and currency derivatives. Based on quantitative models and artificial intelligence, it systematically adapts its asset allocation to the risks and opportunities offered by the prevailing market conditions.

Approach

The investment process by Quantitative Investments combines proprietary models, cutting-edge technology, and active management. The multi-model approach used to optimize each asset class, combined with state-dependent risk management, aims to participate in up markets and limit losses in down markets across cycles. This strategy makes investment decisions without emotional bias, while ensuring systematic risk control at all times.

"We focus on four essential asset classes, avoiding complexity. Our liquid strategy, has proven successful since inception aiming at upside participation and downside management across cycles."

Nicolas Burckhardt, Head of Solutions Switzerland

Investment philosophy

Academic research has demonstrated that economically justified risk premia can offer sustainable sources of investment return. Since risk premia vary over time, active investment helps add value. Research supports the quantitative models and systematic approach of the strategy and spurs continual innovation. Model-based allocation and risk management, precisely implemented, ensure optimal exposure and unbiased portfolio adjustments. The character of the models enables investment transparency for investors. We believe using liquid instruments enables efficient and cost-effective implementation.

* There is no assurance that objectives or performance target will be achieved.

Quantitative Investments - Multi-Asset - Active Beta - Absolute Return - Traditional & Alternative Risk Premia - Vola 5-8

 
 
 
 

Source: Vontobel. The composite inception date is February 1, 2010. The composite‘s gross rates of return are presented before the deduction of investment management fees, other investment-related fees, and after the deduction of foreign withholding taxes, brokerage commissions and transaction costs. An investor’s actual return will be reduced by investment advisory fees. The composite‘s net rates of return are presented after the deduction of investment management fees, brokerage commissions, transaction costs, other investment-related fees and foreign withholding taxes. Results portrayed reflect the reinvestment of dividends and other earnings. The comparison to an index is provided for informational purposes only and should not be used as the basis for making an investment. There may be significant differences between the composite and the index, including but not limited to the risk profile, liquidity, volatility and asset composition. The Euro Short-Term Rate (ESTR) is the one-day interbank reference interest rate for the Eurozone. At this average rate, European financial institutions borrow in euros for one day. ESTR is calculated based on transactions conducted and settled on the previous TARGET2 business day and is published on each TARGET2 business day by the European Central Bank. The USD returns, presented as supplementary information, are a recalculation of realized composite returns in EUR using forward foreign exchange contracts valued using covered interest arbitrage, with monthly rolling to account for currency hedging against the USD. Past performance not an indication of future results. Returns more than one year are annualized. Please refer to the Disclaimer tab for additional explanations regarding composite disclosure and other Important Information.

Quantitative Investments - Multi-Asset - Active Beta - Absolute Return - Traditional & Alternative Risk Premia - Vola 5-8

Composite description

The composite includes all funds and segregated accounts of the investment strategy Multi-Asset - Active Beta - Absolute Return, that actively manage the risk premia not only in the traditional asset classes equity or government bonds, but also in alternative asset classes, with a target volatility of 5.0 - 8.0% p.a.

Benchmark description

ICE BofA ESTR Overnight Rate Index (from inception to 31 June 2022: EURIBOR 3 Month Total Return Index)

Claim of compliance

Vontobel Asset Management claims compliance with the Global Investment Performance Standards (GIPS®).

Firm definition

Vontobel Asset Management is a multi-boutique asset management firm established in 1988 and regulated by the Swiss Financial Market Supervisory Authority FINMA. For GIPS Compliance purposes, Vontobel Asset Management is defined to include assets managed in the Fixed Income, the Conviction Equities, the Quantitative Investments and the Multi Asset boutiques across all global offices and includes both the management of institutional segregated accounts and pooled funds.

For the United States, advisory and investment management services are offered by Vontobel Asset Management, Inc. (“VAMUS”). VAMUS is an investment advisory firm registered with the Securities and Exchange Commission, under the Investment Advisers Act of 1940, as amended, and a subsidiary of Vontobel Holding AG, Zurich, Switzerland. Note: Regarding investment management, all accounts in the composite are managed by the same investment team. However, there are accounts in the composite not offered by VAMUS but by other Vontobel affiliated entities.

List of composites and how to obtain a GIPS Report

To receive additional information regarding Vontobel Asset Management, including a GIPS Composite Report for the strategy presented in this advertisement and a list of all composite descriptions managed by the firm, contact the GIPS Compliance Office at gips@vontobel.com or write Vontobel Asset Management AG, GIPS Compliance Office (G27 611), Gotthardstrasse 43, 8022 Zurich, Switzerland.

Fee schedule

The current annual investment management fees charged for segregated accounts are: 0.50% on the first $100 million, 0.35% over $100 million. The current investment management fee schedule for the Vontobel Fund II - Active Beta Opportunities, which is included in the Quantitative Investments - Multi-Asset - Active Beta - Absolute Return - Traditional & Alternative Risk Premia - Vola >=5 Composite, is 0.50% on all assets for institutional share classes. The latest total expense ratio (TER) for the Vontobel Fund II - Active Beta Opportunities is 0.68% for the institutional share class.

Investment management fees for advisory services offered by VAMUS may differ from what’s noted above. Fees charged are negotiable and further described in Part 2 of Form ADV for VAMUS.

Past performance and investment risk

Past performance is not indicative of future results. Investing involves risk, including possible loss of principal. Value and income received are not guaranteed and one may get back less than originally invested.

CFA Institute

GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

Important Information

This document has been prepared and approved by a company of the Vontobel Group (“Vontobel”) for informational purposes only and does not constitute an offer, solicitation or recommendation to buy or sell any investment securities or strategies discussed, to effect any transactions or to conclude any legal act of any kind whatsoever. This information should not be considered investment advice or any other kind of advice on legal, tax, financial or other advice or a recommendation to purchase, hold or sell any investment. No representation is given that the securities, products, or services discussed herein are suitable for any particular investor.

The index comparisons are provided for informational purposes only and should not be used as the basis for making an investment decision. Further, the performance of the composite and the Index may not be comparable. There are significant differences between the composite and the indices referenced, including, but not limited to, risk profile, liquidity, volatility and asset composition. Please note that an investor cannot invest directly in an index.

Any projections contained above are based on a variety of estimates and assumptions. There can be no assurance that the assumptions made in connection with the projections will prove accurate, and actual results may differ materially. The inclusion of projections should not be regarded as an indication that Vontobel considers the projections to be a reliable prediction of future events and projections should not be relied upon as such.

There can be no assurance that investment objectives will be achieved. Clients must be prepared to bear risk of a total loss of their investment.

Past performance is not a reliable indicator of current or future performance. The return may go down as well as up, e.g. due to changes in rates of exchange between currencies. The value of invested monies can increase or decrease and there is no guarantee that all or part of your invested capital can be redeemed.

Please refer to Form ADV Part 2A for additional information on the strategy which includes Vontobel’s investment advisory fees.

Vontobel Asset Management, Inc. (Vontobel) is registered with the U.S. Securities and Exchange Commission as an investment adviser under the Investment Advisers Act of 1940, as amended, in the USA. Registration as an Investment Advisor with the U.S. Securities and Exchange Commission does not imply a certain level of skill or expertise. Advisory services for strategy discussed herein are offered through a Participating Affiliate structure between Vontobel Asset Management, Inc., Vontobel Asset Management AG, and Vontobel Asset Management Asia Pacific Ltd.

Although Vontobel believes that the information provided in this document is based on reliable sources, it cannot assume responsibility for the quality, correctness, timeliness or completeness of the information contained in this document. Except as permitted under applicable copyright laws, none of this information may be reproduced, adapted, uploaded to a third party, linked to, framed, performed in public, distributed or transmitted in any form by any process without the specific written consent of Vontobel. To the maximum extent permitted by law, Vontobel will not be liable in any way for any loss or damage suffered by you through use or access to this information, or Vontobel’s failure to provide this information. Our liability for negligence, breach of contract or contravention of any law as a result of our failure to provide this information or any part of it, or for any problems with this information, which cannot be lawfully excluded, is limited, at our option and to the maximum extent permitted by law, to resupplying this information or any part of it to you, or to paying for the resupply of this information or any part of it to you. Neither this document nor any copy of it may be distributed in any jurisdiction where its distribution may be restricted by law. Persons who receive this document should make themselves aware of and adhere to any such restrictions.