Investment fund
Alongside its individual institutional product solutions, Varengold also offers two German investment funds.
The second fund, “Varengold Alternative Alpha”, is more concentrated and dynamic in structure. It is not aimed at representing the MF universe but rather, as its name suggests, generating alpha. Portfolio management can flexibly weight individual sub-strategies to meet risk and return criteria and construct an optimised overall portfolio. Tolerated volatility is 12%. The fund is a German UCITS III fund with daily liquidity.
| Diversification und portfolio protection | CTA index1 | Bond index2 | DAX3 | MSCI World4 | HI Varengold CTA Hedge - A |
| Correlation VAA - I* | 0.64 | 0.139 | -0.18 | -0.23 | 0.46 |
The first is the highly diversified “HI Varengold CTA Hedge” involving 10-15 managers with various different sub-strategies (trend following/short-term trading/global macro/discretionary). The fund is aimed at providing a low-volatility, highly diversified access to the MF universe. Medium-term target returns are an annualised 8% at a maximum volatility of 9%. The fund is a German fund of hedge funds with weekly liquidity pursuant to Section 113 InvG.
| Diversification und portfolio protection | CTA index1 | Bond Index2 | DAX3 | MSCI World4 | Varengold Alternative Alpha I |
| Correlation CTA Hedge - A* | 0.82 | -0.18 | -0.13 | -0.20 | 0.46 |
(1) Barclay CTA Index
(2) Bloomberg Bond Indices Euro Govt 7-10yr
(3) DAX (Frankfurt)
(4) MSCI World Index - US Dollars* As of 31-08-2011
