« Our strategy once again proves its robustness in extreme situations. Our diversified flexible funds are resistant to the crash and have kept positive returns since the start of the year: +3.24 %* for Ouessant and +9.14 %* for Mach 3. »
— Laurent Jaffrès, CEO and founder
Following recent events, it seems important to us to keep you informed of the evolution of the behavior of our strategy which, once again, proves its robustness in extreme moments. While the majority of funds display a negative YTD performance, our risk management by artificial intelligence has worked very well: our diversified flexible funds maintain positive YTD returns of +3.24 %* for Ouessant and +9.14 %* for Mach 3.
These last weeks of almost uncontrolled market panic, mainly due to COVID-19, have brought down international equity indices, which are now falling by more than 15 %, therefore placing the current episode among historical records.
The “Flight to Quality” caused by the sharp rise in volatility (the VIX index went from 14 to more than 50 in a few days) pushed investors into safe-haven assets such as sovereign bonds, leading to a further fall in long-term rates, with the US T-Note reaching previously unseen levels.
On Thursday, February 20, our asset allocation driven by artificial intelligence began to increase its bond positions, in proportion to the risk estimated at that time; then started to reduce its equity positions on Friday the 21st. As the risk increased over the weekend, the strategy was reactive of course: the models significantly reduced their risk on Monday 24 February, and have since been displaying a zero sensitivity to equities.
“On March 9, “Black Monday”, while the Euro STOXX 50® index continued to collapse, approaching -9 % intraday, our funds remained positive with a daily performance of +0.03 %* for Ouessant and +0.05 %* for Mach 3.”
Performance since January 1, 2020
|Thanks to a risk exposure management optimized by our robust and innovative models, all of our funds reacted perfectly according to their objectives: to capture rising phases while controlling down phases.|
Thank you for your trust,
— Laurent Jaffrès
Regulatory information: This is a promotional communication. It may not be reproduced in whole or in part without the prior authorization of the management company. It does not constitute either a subscription offer or investment advice. The information in this communication may be partial and is subject to change without notice. The reference to certain securities or financial instruments is given by way of illustration to highlight certain securities present or which have been present in the portfolios of funds managed by Vivienne Investissement. It is not intended to promote direct investment in these instruments, and does not constitute any investment advice. The information contained herein is given in good faith but can not be guaranteed. It reflects the current environment and may be revised at any time without notice. The funds present a risk of capital loss.
Main risks: Equity risk, risk of loss of capital, interest rate risk, credit risk, currency risk, descriptions and details included in the KID (Key Investor Document) and the Fund’s prospectus which we recommend you to read here for Ouessant and upon request for Mach 3.
* Past performance is not a reliable indicator of future performance. Returns are net of fees.