25 November 2015
Seeyond Europe MinVariance: high 5!
After 5 years of existence and despite the many market configuration switches since inception on September, 30th 2010*, Seeyond Europe Minvariance has reached 5 years with the honors by successfully fulfilling its performance and volatility reduction objective …
The strategy succeeded in generating consistent returns through varying market configurations, and strong performance shifts encountered over the last 5 years:
Indeed, over 5 years, the fund outperforms the MSCI Europe NR EUR by 15.3% while meaningfully reducing the volatility (-30% in average since inception):
THE FUND – keys to success
1. At the core of Seeyond’s minimum variance strategy, focusing on managing the overall level of portfolio volatility does indeed benefit from superior long term risk-adjusted returns:
• Stock picking based on risk while aiming to reduce the portfolio’s absolute risk in order to benefit from the long term outperformance of low volatility stocks versus high volatility stocks
• Priority put on building a diversified portfolio which present inherent defensive qualities and downside risk reduction
• An unconstrained approach by country, style, sector or market capitalization to enable full deployment of the process
• Optimization of the rebalancing approach to limit rebalancings to those significantly contributing to the portfolio’s global risk reduction
2. The portfolio managers, Nicolas Just, CFA and Juan Sebastian Caicedo, CFA, have developed and implemented a strategy adaptable to investors’ perception of financial markets:
• Capability to generate high alpha, and thus high outperformance, while substantially reducing downside risk
• An original and diversifying approach to equity markets
• Looking to continuously improve our optimization and investment processes, in collaboration with Seeyond’s dedicated Quantitative Research team.
* A sub-fund of the Luxembourg-domiciled Natixis AM funds SICAV
The performance indicated for the fund before its inception, for the period from September 30, 2010 to November 27, 2013 is based on the historic performance of Seeyond Europe Minimum Variance, FCP collective investment fund under French law, registered with AMF, the financial market authority, and managed by the same management company using the same investment process. This performance has been adjusted to show the various charges applicable to the fund as accurately as possible.