Gateway Target Beta UCITS Fund

ABSOLUTE RETURN

Gateway Target Beta UCITS Fund

Prime Capital’s “Gateway Target Beta UCITS Fund” was launched in 2015 and has since shown that the combination of risk-controlled market returns and a tactical alpha strategy provides attractive, uncorrelated returns. The fund pursues a systematic investment strategy with the objective of generating absolute returns of money market + 5 percent, with an average annual volatility of 6 percent. The fund therefore targets equity-like returns with significantly reduced risk.

Gateway Target Beta UCITS Fund at a glance

  • Risk-adjusted returns – an intelligent combination of risk-adjusted market returns and a tactical alpha strategy
  • Multi-asset solution via equity, credit, short-term interest rates, government bonds and currencies
  • Strict risk management based on systematic data analysis with an algorithm that quickly responds to market developments
  • Short reaction times and high dynamics in the event of downward and upward market movements
  • Cost-efficient and highly liquid realization through the use of index futures and credit derivatives

Solid performance driven by dynamic asset allocation

Since its launch, the Gateway Target Beta UCITS Fund has been able to prove that the fund concept works even in difficult market situations. The investor should have a long-term investment horizon, as there may be short-term fluctuations in performance.

The portfolio consists of two independent components: a risk-adjusted beta- and a tactical alpha-strategy.

Risk-adjusted beta strategy
The beta strategy pursues an allocation to traditional risk premiums. We take advantage of the fact that risky investments pay off in the long-term. The focus of our risk management system here is on avoiding major losses. To this end, defined risk budgets are permanently monitored and exposures adjusted accordingly. The beta portfolio applies an equal risk contribution allocation to equity and credit indices. The proportions of equity and credit risks are weighted equally.

Tactical Alpha Strategy
This is a tactical multi-asset long/short asset allocation approach. The strategy focuses on dynamic risk management. Positioning is determined by a rule-based trading system that uses both fundamental market indicators and technical indicators such as trend direction and trend strength. Here, too, the exposures are continuously adjusted if the risk management system provides appropriate signals. The tactical portfolio has very little correlation with the portfolio of traditional risk premiums and can make a stable contribution to the portfolio, especially in difficult market conditions, and exploit its diversification potential.

Correlation of risk-based beta- and tactical alpha-strategy

The chart shows the monthly strategy contributions of the risk-adjusted beta strategy (dark blue bars) sorted in ascending order.

The grey bars show the performance contributions of the tactical alpha strategy. These reflect a low correlation to the risk-controlled beta strategy.

Correlation of risk-based beta- and tactical alpha-strategy

The chart shows the monthly strategy contributions of the risk-adjusted beta strategy (dark blue bars) sorted in ascending order.

The grey bars show the performance contributions of the tactical alpha strategy. These reflect a low correlation to the risk-controlled beta strategy.

Cost-efficient systematic approach – protects performance

Both strategies use exclusively financial instruments that provide high liquidity and are characterized by low transaction costs. The cost-efficient implementation of the strategy leads to lower ongoing costs, which improve the overall net performance.

Fund Facts

Strategy Multi-Asset Absolute Return
Investment universe Equity, Credit, Bonds, Currency
Decision process systematic
Fund volume 76.94 mio. EUR
(30.11.2019)
Fund structure UCITS

Share classes

Share class I EUR
ISIN IE00BYVTX608
Currency EUR
Inception date 04.09.2015

Absolute Return Management

Dr. Werner Goricki,
Board member, CIO

Contacts

Prime Capital AG
Bockenheimer Landstraße 51-53
60325 Frankfurt am Main

ucits@primecapital-ag.com

Awards

Fund Stars Siegel

Fund Facts

Strategy Multi-Asset Absolute Return
Investment universe Equity, Credit, Bonds, Currency
Decision process systematic
Fund volume 76.94 mio. EUR
(30.11.2019)
Fund structure UCITS

Share classes

Share class I EUR
ISIN IE00BYVTX608
Currency EUR
Inception date 04.09.2015

Absolute Return Management

Dr. Werner Goricki,
Board member, CIO

Contacts

Prime Capital AG
Bockenheimer Landstraße 51-53
60325 Frankfurt am Main

ucits@primecapital-ag.com

Awards

Fund Stars Siegel


Legal Notice

This communication is provided for informational purposes only and should not be misconstrued as investment advice, an investment recommendation or a public offer or solicitation to buy, sell or hold any of the financial instruments or products described. The products described here are suitable for Institutional Investors only. These products are not eligible to private/retail investors. Investing is, by its nature, risky and anyone contemplating any form of investment should seek out qualified experts to advise on specific matters. Therefore, the interpretation and use of this material rests solely with the reader. Prime Capital makes no representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of the contents of the information provided. Analyses and opinions contained herein may be based on assumptions that if altered can change the analyses or opinions expressed. Nothing contained herein shall constitute any representation or warranty as to future performance of any financial instrument, credit, currency rate or other market or economic measure. Furthermore, past performance is not necessarily indicative of future results. The information contained in this communication was obtained from sources considered to be reliable, but its accuracy and completeness is not guaranteed or otherwise warranted or represented by Prime Capital. Unless otherwise indicated, all figures are unaudited. Any historical performance included in this communication may be based on back testing. Back testing is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such strategy would have been. Back tested performance is purely hypothetical and is provided in this document solely for informational purposes. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. The value of any investment may be affected by exchange rate movements. By retaining this document, recipients acknowledge that they have read, understood and accepted the terms of this notice.

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