Success story of a global mixed fund
The performance to date with moderate value fluctuations (compared to the in part massive price declines on the financial markets in recent years) proves the success of the strategy behind Raiffeisen-Global-Strategic-Opportunities. This is also true compared with similar funds from competitors (as can be seen in the peer-group ranking, for example). Of course, past results can never be projected into the future and are not a guarantee for future returns. But they are a good base to work from!
Top investment now also open to private customers
Up until now, Raiffeisen-Global-Strategic-Opportunities was available solely to institutional investors and large-scale investors under the name Raiffeisen 337 - Strategic Allocation Master I. Now, private customers can finally also make use of this fund. The new name Raiffeisen-Global-Strategic-Opportunities is also a better reflection of the fund’s focus: the targeted and strategic (i.e. long-term) use of earnings opportunities around the world!
The strategy and investment success of Raiffeisen-Global-Strategic-Opportunities to date is based on four core elements:
an anti-cyclical investment style,
broad diversification in a wide range of asset classes and regions,
orientation towards medium- to long-term valuations and earnings prospects, and
investment decisions based on the associated risk (“managed risk parities” investment approach).
Anti-cyclical investment with Raiffeisen-Global-Strategic-Opportunities
Put simply, anti-cyclical means that the fund management sets up or increases positions at attractive, lower valuation levels and reduces positions or sells them off entirely when valuations are rising (or higher). “The profit is in the purchase” is one of the oldest adages of successful businesspeople. In this, the fund can entirely avoid certain, very highly valued markets or asset classes if their long-term earnings prospects appear to be unattractive when weighed against the risk.
In the recent past, for example, the fund held very little in the way of bonds as long as the yields were extremely low and the long-term risk-return ratio thus very poor. Instead, the fund management picked up large quantities of inflation-linked bonds at a time when the markets were pricing in nearly zero inflation risks. As inflation rates rose, these investments were gradually reduced.
The fund management also successively built up positions in government and corporate bonds from 2021 to 2023 as the yields were rising rapidly and the bond prices were thus falling steeply. When the prices recovered in the fourth quarter of 2023, these positions were already reduced again slightly.
Now, the fund management has set up an initial position in Chinese equities, for example, after years of waiting very patiently for the best possible risk-return constellation.
Possible downsides and risks
Naturally, the concept also involves risks. If the fund management is incorrect in its assessment, it may make purchases too early. Generally speaking, cheap or attractive assets can always become even cheaper/more attractive. In addition, waiting for opportune times to invest by no means offers protection against price losses, but it does at least reduce these risks or their probability somewhat. Naturally, the fund management may also be overambitious and wait in vain for more favourable opportunities to enter the market. Although this would not result in any loss of value for the fund, it could lead to missed earnings from advantageous market movements.
Risk management
The fund management does not only weight the investments in the fund based on the earnings prospects, but also based on the risks – or more precisely on the likely risk contributions (which specialists call “managed risk parity”). In this, more volatile and risky assets (such as commodities or equities) are assigned lower absolute weightings than less-risky, less-volatile investments (such as highly rated bonds). This approach allows the risk and fluctuation range of the fund portfolio to be managed better, more precisely, and more flexibly than with conventional mixed-fund concepts such as the traditional 60/40 portfolio (consisting of 60% bonds and 40% shares).
Summary: using global opportunities with a long-term focus and good risk diversification
Raiffeisen-Global-Strategic-Opportunities is now also offering private customers the possibility of using global, long-term earnings opportunities with an anti-cyclical, valuation-oriented fund that can invest in nearly all assets and regions. In this, the fund management focuses not only on earnings and opportunities, but also on risk management and good risk diversification. Because a key for long-term success is maintaining the best possible ratio of earnings potential to risk at all times.
The investment strategy permits the fund to predominantly (relative to the associated risk) invest in derivatives. According to its investment strategy, the fund mainly invests in other investment funds. The fund exhibits elevated volatility, meaning that unit prices can move significantly higher or lower in short periods of time, and it is not possible to rule out loss of capital. The Fund Regulations of the Raiffeisen-Global-Strategic-Opportunities have been approved by the FMA. The Raiffeisen-Global-Strategic-Opportunities may invest more than 35 % of the fund's volume in securities/money market instruments of the following issuers: Austria, Germany, Belgium, Finland, France, Netherlands.