Why should you invest in stocks?
We are often asked why an investment with easyfolio is particularly worthwhile and what sets us apart from our competitors. We have therefore taken your questions as an opportunity to show you all the main advantages of our easyfolio strategy over seven episodes. Today we would like to start with the detail that interests our investors most: the performance.
No. 1: The performance
Easyfolio's strategies are investment funds that map the global capital market and use exchange-traded funds (ETFs) to easily and transparently cover the asset classes stocks and bonds. Due to the broad diversification and an attractive cost structure, the easyfolio strategies achieve a consistently positive performance - especially when compared with comparable fund managers.
The data provider Morningstar is used for this comparison.
This assigns each fund to a specific comparison group (“peer group”) in accordance with its investment strategy. The easyfolio strategies are mixed funds as they invest in two asset classes (stocks and bonds). With a neutral equity quota of 30 percent, the easyfolio 30 strategy is, according to Morningstar, in the group of defensive mixed funds with a global focus. The easyfolio 50 strategy, on the other hand, is assigned to the group of balanced mixed funds with a global focus, the easyfolio 70 strategy to the group of opportunity-oriented mixed funds with a global focus. The easyfolio flex strategy is part of the group of globally investing mixed funds with a flexible equity allocation.
Below you will find the performance of the easyfolio 30, easyfolio 50 and easyfolio 70 (blue) strategies since their launch on April 1, 2014 to February 28, 2017 with the average performance of all funds in the respective comparison group (green). We also take into account the easyfolio flex strategy for the same period.
easyfolio 30, easyfolio 50 and easyfolio 70 have therefore been significantly above the results of the respective comparison group since they were launched. Since its inception, the easyfolio 30 strategy has even achieved a return that is twice as high as the average of active fund managers. The easyfolio flex strategy is in the average of the comparison group over the same period.
The following also shows the rolling 12-month performance of all strategies compared to their peer group.
Accordingly, the easyfolio 30 strategy lost far less in value in the negative market environment from March 1, 2015 to February 29, 2016 than the corresponding comparison group and at the same time gained significantly more in the rising market environment from March 1, 2016 to February 28, 2017.
The easyfolio 50 and easyfolio 70 strategies were also able to gain significantly more in the positive market environment of the past twelve months than they had previously lost compared to the comparison group. Since its inception, the easyfolio flex strategy has shown a performance that is comparable to that of other flexible mixed funds. Due to the longer history of the easyfolio flex strategy, three 12-month periods are taken into account.
Thus, a total of three of the four easyfolio strategies have clearly stood their ground against their comparison group since they were launched. easyfolio flex remained at the level of the corresponding comparison group. On the one hand, these positive results can be attributed to the use of cost-efficient ETFs that invest widely in the global capital market. On the other hand, easyfolio, as a subsidiary of Hauck & Aufhäuser Privatbankiers, benefits from the private bank's 221 years of expertise in portfolio management.
Lennart Segler is Portfolio Manager at Hauck & Aufhäuser Privatbankiers and is responsible for managing the easyfolio strategies. As a proven expert for investment funds, he comments on the development of the easyfolios in his articles and highlights interesting questions from portfolio management.
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