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4 Aug 2014


  • Despite hitting all-time highs during July, the absolute return strategies had a negative month due to sell-offs in Equities, Crude Oil, US Government Bonds and FX (against USD), however losses were partially offset with surges in Coffee (+11%) and Zinc (+6%)
  • Performance year-to-date and over longer horizons remains strong and in line with expectation with risk levels stable and within budgets
  • With so many political, humanitarian as well financial worries dominating the headlines currently, investor fear has naturally increased and portfolios everywhere are surely under review for diversification or re-allocation of risk. The absolute return portfolios remain highly diversified across all four asset classes with risk evenly balanced and are thus robustly positioned should there be further risky asset sell-off as well as being able to benefit from continuing positive trends
  • It is interesting to note that at the start of the year the allocation was more concentrated with equity exposure 34%, commodities 0% and bond exposure 53% in the 2 YR US Treasury. In July equity exposure was down to 17% and in some different sectors, commodities increased to 17% with rotation into Crude Oil, Coffee, Nickel and Zinc and the bond exposure 49% was split between both the 2 YR and 5 YR US Treasuries
  • For the coming month Technology equities and Copper will come in with Crude Oil dropping out with the rest of the portfolio remaining as is and well diversified.

For more information on the absolute return strategies as well as our other strategies please see the information available at www.qlabi.com or contact us at info@qlabi.com


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DISCLAIMER: This document does not constitute an offer, a solicitation, an advice or a recommendation to purchase or sell any investment products associated with the material described herein. The purpose of this document is to describe the principles, research and ideas behind the QLAB Invest strategy indices. Prior to an investment in any product tracking a strategy index, you should make your own appraisal of the investment risks as well as from a legal, tax and accounting perspective, without relying exclusively on the information provided by QLAB Invest. Investment products tracking the indices must be issued or/and marketed by a regulated company. This document is strictly for informative purpose. The single source of the underlying asset data is Thomson Reuters Datastream and QLAB Invest cannot guarantee the correctness of the underlying asset data and cannot be held legally responsible in this regard. Any references made to historical performance up to the official live inception do not reflect actual live performance and can be subject to selection, curve fitting and other statistical biases. Performance in investment products linked to the indices may be reduced by the effect of commissions, fees or other charges in excess of those already factored into the index calculations. The level of the indices will fluctuate due to the volatility of the underlying exposures and past performance or volatility is not necessarily indicative of future results.