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Five years after its inception, and in a market environment marked by numerous
changes in volatility regimes, the Seeyond Europe MinVariance fund posts a
cumulative performance over five years of more than 66%(1) (an outperformance of
more than 15% compared with its benchmark index, the MSCI Europe DNR in
euros*), while significantly reducing volatility (-30% on average compared with its
benchmark index)(2). Its assets under management currently exceed €600 million.
Convincing results
Since its inception, the Seeyond Europe MinVariance fund has succeeded in generating robust performance. While equity markets have gone through considerable fluctuations, due in particular to the debt crisis in the euro zone as well as to the Fed’s and the ECB’s different monetary policies, the fund’s volatility has been reduced by 30% on average compared with its benchmark index representative of the European equity market. The fund posts a cumulative outperformance of 15.3% over five years (1). This risk/return profile has enabled the fund to obtain five Morningstar stars (unit I)(3), thereby putting it among the best in its category.
“Focusing on the management of an equities portfolio’ overall risk provides a better risk/return
profile in the long term”, emphasises Nicolas Just, co-manager of Seeyond Europe MinVariance.
“The success of Seeyond Europe MinVariance, among institutional as well as individual clients,
shows that investors are seeking such solutions that combine return and risk reduction”, he adds.
A distinctive and original approach
The Minimum Variance strategy, deployed through the Seeyond Europe MinVariance fund, aims
to take advantage of opportunities in European equity markets while reducing their fluctuations
in the long term. To this end, the managers rely on a modelled portfolio construction approach
with discretionary leeway which enables active risk management. In order to enable a total
deployment of the strategy, they do not have any constraint in terms of style, sector, country
or capitalisation size. They favour the least volatile stocks and those with the lowest level of
inter-correlation after an in-depth analysis of their risk profile, by using a proprietary model. By
focusing on these stocks, the Minimum Variance management therefore aims to dampen
market movements while taking advantage of the potential of equities in the long term.
“In a context where the amplitude of market movements, on the upside as well as on the
downside, very possibly will gather momentum, the Minimum Variance approach enables
investors to take exposure to European equities, while aiming to improve their portfolio’s
risk/return profile”, according to Nicolas Just.
Seeyond Europe MinVariance, which is marketed in particular to private banking clients of the
Banque Populaire et Caisse d’Epargne networks, is eligible for equity savings plans, life
insurance contracts as well as securities accounts). It is suitable for all investors (institutionals,
companies and individuals). Seeyond’ MinVariance expertise is also used for an international
equities version with Seeyond Global MinVariance (4).
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