We want to assure investors in the QLAB multi-asset strategies that they were well positioned for the turmoil of today and also what may lie ahead. Both strategies and the Convexity and Convexity DL funds are up today.
Today's performance as of 13:00 (source: RPM Dynamic live web reporting)
US Treasury Bonds: +0.87%
This brings year to date performance to over 3% at the strategy level and to between 2% and 3% at the fund level (share class specific).
The portfolios exited equities in August last year in response to weak momentum and so were not exposed to today's equity market sell-off.
There are no liquidity issues as the funds and certificates are run using exchange traded futures, the funds offering daily liquidity, the certificates continuous liquidity.
Looking forward: there is likely to be continued volatility, and so we believe the QLAB multi-asset investment process, which is fully rules based and evidence driven offers great stability against the more emotional and behavioural effects we continue to see in the markets.
COMMODITY LONG/SHORT SUMMARY
Today's performance as of 12:00 (source: Neue Helvetische Bank live NAV)
This brings certificate performance since inception on 2nd May 2016 to +1.6%.
As the strategy is comprised purely of commodities there is no direct impact due to the equity market sell-off. However some soft commodities such as corn (where the strategy is long) have sold off. However the stretegy is long gold which has rallied sharply today.
There are no liquidity issues with the certificate and Neue Helvetische Bank continues to offer end of day NAV dealing as well as intra-day live bid/offer quotes.
Looking forward: Commodity markets can move quickly, however the correlation of the QLAB long/short strategy is very low, actually zero in the long term. We therefore believe the QLAB Commodity Long/Short strategy is a very powerful diversifier in a portfolio containing equities and bonds, as well as being a source of returns which are de-coupled from the economic cycle.
QLAB Asset Allocation and QLAB Dynamic Allocation are accessible in two formats via our product partners:
- Luxembourg funds: QLAB Convexity Fund and QLAB Convexity DL Fund available to professional investors and managed by RPM Risk and Portfolio Management (www.rpm.se)
- Swiss exchange traded certificates: QLAB Asset Allocation and QLAB Dynamic Allocation available to Swiss domiciled retail and professional investors managed by Neue Helvetische Bank (www.nhbpro.ch)
QLAB Quadrant Commodity Long/Short:
- An actively managed and collateralised certificate managed by Neue Helvetische Bank is avilable to European investors
- Fully collateralized against issuer risk and UCITS eligible (transferable security).
All these investment solutions have daily liquidity and offer full position transparency.