Automated stock selection based on highest prospective returns.
The C-QUADRAT ARTS Total Return ESG Fund, with the ISIN AT0000A03K55, is an innovative sustainable equity fund that combines Environmental, Social, and Governance (ESG) criteria with active risk management. This fund employs a flexible and active asset management strategy, utilising complex mathematical algorithms to assess the attractiveness of investable assets on a continuous basis.
The fund's investment strategy is based on a fully automated, quantitative, trend-following system that analyses over 10,000 investment funds and ETFs worldwide. This system focuses on short- to medium-term trends, aiming to invest in the strongest trending sectors and regions independently of any benchmark and without human emotional bias.
Risk management is a key focus for the C-QUADRAT ARTS Total Return ESG Fund. It incorporates a value protection strategy targeted at 90% capital preservation relative to the highest monthly closing value over the previous 12 months. This means potential losses during this period should generally be limited to a maximum of 10% of the unit value, providing a form of downside risk control, though this is not guaranteed.
The fund's performance has shown variable returns, with some historical periods reflecting negative average annual returns and others positive. This underscores the importance of the fund’s risk management approach.
In terms of sector selection, the fund dynamically invests in the trend-strongest sectors worldwide, with an ESG focus integrated. The specific sectors are chosen objectively based on quantitative trend analysis rather than thematic bias.
The C-QUADRAT ARTS Total Return ESG Fund requires constant maintenance and updating of the price database. It uses a fully automated trading program with a trend-following orientation, and stop-loss limits are employed to keep potential losses as low as possible.
The volatility of the fund over 5 years is 9.2%, and the Sharpe Ratio over the same period is 0.70. The trend-following, momentum-based trading system selects stocks with the highest momentum for the investment portfolio and automatically closes positions that have lost momentum.
For each industry, a "Best-In-Class threshold" is defined, and companies whose rating falls below this threshold are not considered for the fund. ISS ESG, a partner in the selection process, creates an ESG Corporate Rating for each company based on recognised ESG standards such as the OECD Guidelines for Multinational Enterprises or the UN Sustainable Development Goals. The ESG Corporate Ratings are reviewed regularly, and the selection is adjusted monthly.
In extreme cases, the influence of the equity share on the fund's performance can be reduced to 0 percent, and the portfolio shifts to risk-averse investments such as bonds that also have to meet ESG criteria. The return (Rendite) of the C-QUADRAT ARTS Total Return ESG Fund over 5 years is 27.6%.
The C-QUADRAT ARTS Total Return ESG Fund does not predict future market potential, leaving it to the computer to decide. Its comprehensive strategy aims to balance capturing positive market trends with a disciplined protection of downside risks, adjusted continuously via a systematic, emotion-free process.
The C-QUADRAT ARTS Total Return ESG Fund's investment strategy incorporates technology by utilizing a fully automated, quantitative, trend-following system that analyzes thousands of investment funds and ETFs worldwide, aiming to invest in the strongest trending sectors and regions. In line with its technology-driven approach, it employs a system that selects stocks with the highest momentum for its investment portfolio and incorporates Best-In-Class thresholds in sector selection, while partnering with ISS ESG to create ESG Corporate Ratings for each company based on recognized ESG standards.
