Total Return Concept
The ARTS Total Return Concept
The ARTS Total Return system is a quantitative, technically traded trading system with a mid-term trend following approach. The trading program invests worldwide up to 100% in equities and equity funds. For defensive purposes up to 100% can be invested in money market funds and/or bond funds. Those investments showing a mid-term positive performance trend are allocated strongest in the portfolio. In contrast to most classically managed funds the investment strategy of the total return funds is not aligned at a benchmark. It rather seeks to realise absolute returns in all market phases.
The core strength of the product lies in the combination of mid-term trend following alignment and the permanent adjustment of the portfolio to the corresponding development of the individual markets. The system does not try to anticipate trends, rather only invests when a positive trend is already established.
In bear markets the proportion of equity exposure can be reduced down to zero. In such phases the capital is largely invested in money market, fixed income with short maturity and investments with strong negative correlation to the classical stock indices. The ARTS Total Return concept represents a highly active management style, the composition of the portfolio changes continuously. Security selection follows purely technical, fully standardised quantitative criteria independent of the skills of an individual fund manager.
Why a Total Return Concept?
After the recent strong volatility on the international stock markets, investors are uncertain about which investment strategy to choose for the future: which investment class should I select? Stocks, bonds or indeed back to a savings account? What would be the best investment now? How do I reduce my risk without having to forego attractive returns?
The Total Return concept deployed in the C-QUADRAT ARTS funds offers a solution for all these decisions: for return optimisation in bull markets, investment is primarily in equities or high yield bonds =" "attractive" return opportunities". In bear markets a gradual move into conservative investment instruments =" "avoidance" of extensive loss periods" (spontaneous losses due to short-term market corrections cannot be completely avoided however).
How does the ARTS Total Return Concept work?
Independent of human emotions the funds management system employs a fully automated, trend following computer system. It analyses the markets for existing trends on a daily basis (clearly recognisable upwards or downwards movements) and so triggers buy and sell decisions.
The computer system selects the respective best performing investments from more than 10,000 securities. Your money is therefore always invested where it seems to be most profitable.