19 November 2013
Seeyond Europe Min Variance celebrates its third birthday in style!
The Seeyond Europe Min Variance fund reached its third birthday on September 30, a good moment to assess an investment that keeps its promises.
With a net annualized performance of 9.17% over three years for I class shares at end-September 2013 (versus 8.85% for its benchmark, the MSCI Europe NR EUR index)*, Seeyond Europe Min Variance has so far met its return objectives. This was achieved with a volatility level 35% lower than the European equities universe represented by the MSCI Europe index, as chart 1 below shows.
Seeyond Europe Min Variance has therefore delivered on its key commitments: generating an attractive return, with significantly reduced volatility.
This particularly attractive risk/return profile is demonstrated by high annualized alpha and a lower beta (or directional risk) than that of most comparable funds (see chart 2).
The fund, which currently has AuM of €242 million**, is to be merged with the Luxembourg SICAV Natixis AM Funds in a sub-fund called Seeyond Europe Min Variance at the end of November.
Quantitative, active management aimed at producing the least volatile performance possible
Through the use of a systematic approach to portfolio construction, combined with active risk management, the managers of Seeyond Europe Min Variance aim to build a significantly more stable portfolio than the European equity markets: they exclude from the investment universe stocks that do not have a long track record or lack liquidity, or that are especially risky, instead preferring the least volatile stocks and diversifying their selection as much as possible. To this end, they carry out an in-depth analysis of the risk profile of individual stocks using their proprietary minimum variance optimization model, which they are constantly seeking to improve.
This approach, which is highly suitable in the current uncertain environment, aims to mitigate equity market fluctuations, so as to increase the probability of outperforming the European equity markets over a complete market cycle.
You can find more information on the Seeyond Europe Min Variance fund by clicking on this link.
Chart 1: Risk/return profile (annualized)*
Chart 2: Alpha - beta profile (annualized)*
Source: Morningstar as at September 30, 2013
*Source: Natixis AM as at September 30, 2013. The figures provided refer to previous years. Past performance is not a reliable indicator of future performance. References to the ranking or rating of a fund or asset manager offer no indication of future performance. Before subscribing, please refer to the Key Investor Information Document for details of the characteristics, risk/return profile and fees of Seeyond Europe Min Variance.
**Source: Natixis AM as at September 30, 2013
Seeyond Europe Min Variance is a French investment fund authorized by the AMF and managed by Natixis AM.