The asset manager Alpha Beta Asset Management has launched a global equity fund on the ETF basis, Alpha Beta Global Plus. The two portfolio managers, Markus van de Weyer and Carsten Vennemann, aim to get target-oriented income with a clear reduction in volatility and drawdown compared to a pure equity position.
In Alpha Beta Global Plus, the portfolio managers want to invest primarily in a global, diversified equity universe through the use of low-cost exchange traded funds (ETFs). The basis is a proprietary equity index, which is not market capitalisation-weighted, but rather assigns a higher weight to smaller companies and developing countries and regions. In addition, preference should be given to selecting countries which meet certain sustainability criteria.
A two-dimensional risk management in combination with active management controls the effective equity ratio between 0 and 100% and reduces the level of investment in market phases. “Our two-dimensional risk management is based on our Sharpe ratio indicator approach. In addition, structural breaks in the volatilities of individual asset classes are identified as risk management signals,” says Markus van de Weyer, founder and CEO of Alpha Beta AM.
The second method was developed by Daniel Ziggel, CEO of Quasol and scientific advisory board of Alpha Beta AM. The investment strategy is the result of the cooperation between the Frankfurt asset manager and Quasol, a company specialised in financial issues.
In view of the new Investment Tax Act, the fund will be managed as of January 1, 2018, as a minimum stock of 51%. The aim of the strategy is to achieve medium to high single-digit earnings per year through an investment cycle. The average volatility expectation per year is around 8 to 10 percent per year.
The Alpha Beta Global Plus fund was launched as a public fund under German law on 15 September 2017. It can be selected as a retail tranche that is economically viable or as an institutional share class with a minimum investment of €100,000.
