Frankfurt am Main, July 4 2016

New market-neutral fund from Mandelbrot and Universal-Investment with focus on US technology stocks

Mandelbrot Asset Management and Universal-Investment have added Mandelbrot Market Neutral US Technology (ISIN DE000A2AGM91) to their fund family for market-neutral equity strategies. This new rule-based approach applies the same investment logic as that of the Mandelbrot Market Neutral Germany fund successfully launched a year earlier.

Mandelbrot Asset Management and Universal-Investment have added Mandelbrot Market Neutral US Technology (ISIN DE000A2AGM91) to their fund family for market-neutral equity strategies. This new rule-based approach applies the same investment logic as that of the Mandelbrot Market Neutral Germany fund successfully launched a year earlier.

Keyfacts

Rule-based and market-neutral approach

Using the opportunities of the US technology sector at reduced risk

Low correlation with other absolute return strategies

Similar to this time-tested concept, stocks offering the greatest upside potential are chosen from the US technology index NASDAQ 100. These stocks make up 75 percent of the fund portfolio. At the same time, a counterexposure is built up on the market, also of 75 percent. In this way, the portfolio's market influence is minimized and currency risks at the same time hedged. "The fund's performance results from the difference between the performance of the fund's equity portfolio and that of the equity index", explains Dr. Wilhelm Berghorn, Managing Director of Mandelbrot Asset Management. "The portfolio reallocations are generally carried out monthly and in extreme situations we can switch to cash and bonds."

The objective of the market-neutral strategy is to allow investors to participate in the opportunities of the US technology sector while at the same time minimizing risk. The equity-like target return over a medium to long-term horizon lies at an annual nine percent. The target volatility should only lie at half compared with the NASDAQ 100 basis market. "The structure underlying Market Neutral US Technology is almost identical to that underlying Mandelbrot Market Neutral Germany, a model that has proved its worth in practice since its launch", Berghorn continues.

The investment approach is based on the latest findings on the momentum effect which can be attributed to a vision of the mathematician Benoît Mandelbrot on the basis of modern analysis methods. The Mandelbrot market model named after him offers an explanation for this effect and bases its theory on fractal markets.

Consistently strong demand for market-neutral approaches
Mandelbrot Market Neutral US Technology offers conservative investors and absolute return investors a further component for more greatly diversifying their portfolios. "Our analyses as well as the real asset management results of our strategic partner Deutsche Wertpapiertreuhand reveal that the momentum effect generates alpha in different markets at different times", Berghorn explains. Both approaches are expected to show a very low correlation of only 20 percent. At a similar risk-return profile, this signals considerable diversification potential. These low correlation qualities also apply to many other absolute return strategies so that both approaches can make a further contribution towards diversifying absolute return portfolios.

Fund data at a glance

Fund name: Mandelbrot Market Neutral US Technology
Fund partner: Mandelbrot Asset Management GmbH, Munich
Investment company: Universal-Investment Gesellschaft mbH, Frankfurt am Main
Custodian: Joh. Berenberg, Gossler & Co. KG, Hamburg
Fund category: Balanced fund with stress on equities
Fund currency: Euro (EUR)
WKN / ISIN: A2AGM9 / DE000A2AGM91
Unit type: Accumulating
Ongoing charges (estimate): 2 % p.a.
Minimum initial investment: None
Initial charge: Up to 5 %
Performance fee: Up to 10 % of the return generated in excess of the reference value (absolute positive return with high watermark) during the accounting period.

About Mandelbrot Asset Management

Munich-based Mandelbrot Asset Management GmbH develops modern investment solutions based on new capital market findings. Dr. Wilhelm Berghorn is the partner and founder of the company. The qualified computer scientist and mathematician has been working with the so-called wavelet analysis for industrial and financial services applications for over 20 years. Two proven experts, Prof. Dr. Heinz-Otto Peitgen and Dr. Sascha Otto, form the scientific advisory committee of Mandelbrot Asset Management GmbH. Peitgen is a mathematician and chaos researcher. His books on chaos theory and fractal geometry have been global bestsellers for almost two decades. Otto graduated in business administration. After completing his PhD, Otto held various positions in different banks, most recently as head of securities and portfolio management at Sparkasse Bremen.


Further information can be found at www.mandelbrot.de

Your media contact

Bernd Obergfell
Spokesman

Phone
+49 69 71043-575

e-mail
bernd.obergfell@universal-investment.com

Profile

Please find current facts and figures on Universal-Investment at a glance in our portrait .