Trading Signals
WAY Hasley Global Momentum Fund - Update:
May 2012
At the end of the review period in April, sell signals emerged and were actioned for Europe, Europe Small Cap, Europe Mid Cap, Japan, Japan Small Cap, and the Netherlands. As a result the Fund is currently invested in Global, North America, Pacific ex-Japan, US Small Cap, UK and USA.
To view an animated graphic representation of the latest monthly movements, click here: Momentum - May Signals
Market Comment
Following the sell-off which occurred in the third quarter of 2011, equities rallied in the final quarter of 2011 and the first quarter of 2012. This was in response to the European Central Bank's Long Term Refinancing Operation; the tentative signs that the US recovery was gaining traction and relief that China was achieving a soft landing.
Accordingly, at the end of March, (excluding Australia and Canada) the signals for each of the market holdings were positive, so the fund was invested into twelve of the fourteen equity markets.
During April however the signals began to reflect market doubts about the robustness of the US economy as well as concerns that the Eurozone crisis was far from resolved.
The Trading Model
Finally, just to remind you of the basic precepts of this distinctive fund:-
- The trading model is based on trend momentum theory which analyses the price movement of 14 equally weighted, fully replicated, ETFs which cover developed global equity markets. A decision to invest or not (default cash) is determined monthly by the price moving average of each individual ETF.
- Quite simply, when the market covered is trading above the price moving average, the fund is invested. When a market is trading below its average then the fund dis-invests in the corresponding ETF and holds cash - pending a reversal of the trend.
- The result is a process that investors can understand and subscribe to – they are in markets when they are rising and out when they are falling.
- The model works entirely as crafted by Professors Thomas and Clare, there is no human judgemental overlay.
Click here: Momentum - Trading Rules And Frequency
References:
1. Data & Statistics - Hasley Investment Management LLP
2. Others: WAY Fund Managers Limited
Yours sincerely,
Eddie O'Gorman
Director of Sales & Marketing
WAY Group Limited
– Ends –
How to contact us
If you would like further information as to how this fund can help you manage the equity content of your clients' portfolios, then please use the link below to visit our dedicated Momentum Fund web page.
You can also speak to your Regional Sales Manager or call Tony Lyons, IFA Support Manager, on head office telephone number: 01202 890895. Or, if you prefer, you can use the website: Contact Form to get in touch.
Associated links:
Website: WAY Hasley Global Momentum Fund
Please Note:
This document has been prepared for Financial Intermediary Clients and Professional Associates of WAY Investment Services Ltd and is not intended for and must not be distributed to Private Investors. This document does not constitute investment advice. Services referred to in this document may not be suitable for every investor and if in doubt independent financial advice should be sought. No representation or warranty is given (express or implied) as to the accuracy, completeness or correctness of the information nor the opinions, interpretations and conclusions contained in this document. No liability is accepted whatsoever for any loss howsoever arising from any information in this document subject to the rules of the Financial Services Authority or the Financial Services and Markets Act 2000. Past performance is not necessarily a guide to future returns and changes in rates of exchange between currencies may cause the value of investments to rise or fall. Share prices, values and income can go down as well as up and investors may get back less than their initial investment. WAY Investment Services Ltd is an Appointed Representative of WAY Fund Managers Ltd which is authorised and regulated by the Financial Services Authority.