Strategy Defensive: Quality has its price

For the first time in 2017, the Quint: Essence Strategy Defensive had a negative performance of -2.73% pa. This performance is a direct result of current central bank policy . The ECB negative interest rate on short-dated bonds of the highest credit quality (eg German government bonds with maturities of less than 5 years) automatically leads to a negative yield of such investments. But exactly the bonds of the highest credit standing are actually the focus of the Quint: Essence Strategy Defensive, as it focuses on risk minimization . The only way to avoid the inevitable loss of capital is to increase the risk. The increase in risk can be achieved, for example, with bonds of lower creditworthiness, longer maturities, a higher equity quota or foreign currency exposure.

We try to select the "least bad" alternatives in this situation, which means that we do not compromise on credit quality, because we think the risk of bad debtors is too high given the current low interest rate environment is very likely that interest rates will rise sharply in the future. for longer run times then threaten high losses. We therefore consider it purposeful and related to the low risk tolerance of defensive investors to increase equity exposure and foreign currency exposure. in the In the past few years, we have been able to escape the "ECB effect" and preserve the purchasing power of our investors. This strategy did not work in 2017. In particular, the weakening of the US dollar against the euro had a negative impact on the fund's performance and could not be offset by the shares in the portfolio. 
 
 The main investment objective of investors in strategy defense is capital preservation . Therefore, despite the disappointing results in 2017, we still believe the Fund's strong risk containment is the right one. We believe that our investors are best served in the long term.