Conservative Concept Portfolio Management (CCPM) in Bad Homburg has launched a new balanced fund, broadening the existing portfolio of absolute return funds.
Together with Universal Investment, the TriStone UI Fund was launched as a UCITS mutual fund in April 2014.
The fund invests in three markets, DAX 30, Euro Stoxx 50 and Euro Bund futures, through a systematic rule-based approach.
The positions are capital-efficient through the use of EUREX-Futures. Approximately 90 per cent of the fund is invested in bonds and money market in order to generate additional profit.
The weighting of each of the three markets (around -0.8 and +0.8), is determined by the short-term momentum in combination with the long-term trend.
“In essence should the markets, particularly the European equity markets, rise the strategy aim is to be fully involved in the way up, and to get out quickly in the way down,” says Thomas Hunger, head of business development. “Already after a short period we are confident the fund will meet its target and its expectations. Compared to pure stock or bond investments during the current valuation levels in the markets, we created with the TriStone UI Fund an attractive alternative, offering an appropriate solution for the concerns and desires of investors.”
On average the fund holds positions for a period of a few days and up to two weeks. Generally, the fund has no investments in the particular markets during 25 per cent of the time, if no up or down trends are observed.