The Altaica Sustainable Equity Opportunity Fund (in the future mentioned as: SEO Fund) is a sub-fund of the Alpha High Performance Fund. Arent Thijssen is the portfolio manager of the fund and has years of experience in alternatives investment strategies. The strategy of the fund consists of active management in both long and short positions or even leveraged positions to outperform the indexes.
The SEO Fund invests in developed markets like the US and Europe, but also countries like Japan and the so called emerging markets. Some investors might avoid these markets, but because of the active management the fund tries to capture the opportunities that these markets give.
Strategy
The Altaica Global Sustainable Equity Opportunity Fund is always for at least 100% of the NAV invested in the so called Core Portfolio which is an active managed sustainable equity portfolio of about 35 individual companies. This selection of individual equities is based on the expertise of an external team of analysts with a long and solid track record. The Altaica team is adding Equal Weight as factor to this portfolio.
To leverage the portfolio Sustainable ETF’s are used for max another 100% of the portfolio.
Using leverage in investing is making use of borrowed money to buy stocks. The result is to increase your potential profit while using a lower amount of your own money. But it also multiplies the downside risk.
Even though some sectors can generate high returns, this does not mean the fund is invested in them. This is because investments that are associated with the production of controversial weapons, anti-personnel mines and nuclear explosive devices are excluded. See “PAX – Worldwide Investments in Cluster Munitions; a shared responsibility” for the full list of excluded companies.
The strategy used for selecting investments is a so called factor investing model. For selecting the “best in class” investments, at least two external and independentdata sources are used. We are looking for the companies which belong to the top 50% and preferbly belong to the first quartiel.
In the factor model the following factors are used:
- Momentum: this factor gives us an indication if we should take a leverage on our portfolio or take a hedged position. In times of a positive momentum we take a leveraged position on our portfolio. This way we can make outperformance. But when a negative momentum occurs, we hedge our portfolio.
- Quality/ Sustainability: we look for investments that have a high score on the Sustainability scale. This indicator also makes sure the selected companies have a lower risk on claims from environmental and social perspective.
- Size/Equal Weight: give every investment an equal share in the portfolio. This way a few stocks won’t have big influence on the portfolio results. After some time, the weights of the stocks will change, so we rebalance them to an equal weight portfolio.
By using this strategy, the goal of the fund is to achieve a return which lies above the average long-term stock return (taking into account cost the goal is a net return of 7%), along with a lower risk as measured by volatility (a volatility of 12%). From scientific studies, we are aware that the returns on Sustainable stocks might be lower in the short run, but will catch up on the long term. With having this philosophy in mind, we want to offer a better alternative for investment institutions that offers allocation to markets all over the world.
Altaica Sustainable Equity Opportunity Fund (SEO) is a continuation of Altaica EUR-Asia Emerging Fund.
Access to Performance
Sustainable Equity Opportunity Fund
- date: March 2022
- year to date: -13.82%
- annualised: 21%
- last month: 2.89%
* original fund starting date: 1 July 2015, however the returns mentioned here are as in the new setup since March 2019 (see also below)
** please note that before March 2019 the fund was named Alpha Eur-Asia and managed in another setup
Sector Allocation as per 31 December 2019
Access & Expenses
The annual management fee of the Altaica Sustainable Equity Opportunity Fund is 1.5%. The performance related fee is 15%, high watermarked. This means we only charge our performance fee in case the fund achieves a new all time high.
The entrance and exit fees are 0.25% of the amount you invest or the amount of your redemption.
The minimum entrance investment is € 50,000. After this deposit, it is possible to do additional deposits with a minimum of € 5,000. The fund trades once a month.
For additional information about the costs. Go to our “Information” page and open the Prospectus from “Altaica Sustainable Equity Opportunity Fund (SEO)” which also includes more information about our SEO fund.