You are Protected !!
In recent weeks, the news has been full of the Corona virus and what impact it has on everyday life. In January it seemed like an isolated incident in China, but now the virus has reached all parts of the world and is unstoppable.
Despite the fact that it is a mutated influenza virus where survival rates are high, it has a huge impact on the economic trading blocks of the US, Europe & China.
It is important to mention that it is precisely for these kinds of circumstances that Ostrica has built a protection strategy that during the current crisis has considerably limited the downward movements in shares.
Your Investments are diversified
As you have come to expect from us, we always spread your assets over a large number of investment titles. In total, a neutral portfolio at Ostrica consists of more than 500 titles. This means that on average only 0.20% is invested in a title or company. This prevents bankruptcies from having a major impact on your assets
We have hedged large positions since late 2019
Ostrica increased the share hedging percentage to 60% during the fourth quarter of 2019 and January 2020. The US Dollar is also hedged against the Euro in all bond funds and over 80% in equity funds.
What does this mean to you?
By protecting your assets, the downward fluctuations are much smaller than with other investors. A neutral portfolio at Ostrica has lost only 8.64% since its February high, while a neutral portfolio of index trackers has lost 18.28%. This has reduced the risk by 53%
More importantly, in terms of yield over the past 5 years, including the recent declines, we have always achieved our target of interest plus 5% per annum.
Is it going to be okay?
We compared the current situation in our databases of 200 years of historical data. From this we identified five similar events. In these types of events, there is an initial rapid correction, after which markets recover to the previous high within 15 months. Our models indicate that we have now had 80% of the correction.
We monitor your assets on a daily basis and increase and decrease protection. With this we ensure a steady growth of capital aimed at your long-term growth trend line.
Our models never sleep, so you can!