FTM C March 2018 graph

With the first quarter of 2018 well and truly behind us we can take a step back and access the performance of the broader markets and of FTM. As you may recall January started off great but by February the wheels started to come off and most major markets ended in the red. While many analysts thought this to be an anomaly there was more red to come in March as well.

After 9 straight quarterly increases we ended the first quarter of 2018 down 2.5% for the Dow and down 1.2% for the S&P 500. Now this isn’t a huge loss by any stretch of the imagination but when it’s not what you expected it can make you question your rational for investing.

That said it could have been worse if you were in the Australian market you would have lost around 5% and if you were solely in Bitcoin then you would be down around 60% as some $150 Billion has been erased from its value. So, I guess it’s all a matter of perspective😊

It was during this quarter that the benefit of including alternative investments in an investment portfolio became evident. FTM Class A ended the quarter up 2.36% which in relative terms means that the difference between an investment in the Dow over the same period and FTM is 4.86% and for the S&P 500 is 3.56%.

Not a huge difference maybe but FTM would have generated a return of 2.36% for the quarter irrespective of market conditions or direction.

Please don’t get me wrong I am not saying that FTM is the be all and end all. However, it does make for far less sleepless nights and there is no wasted energy trying to recoup a loss.

Personally, I love the stomach churning dips, steep inclines, abrupt twists and turns and the occasional loop, but prefer it more in the roller coaster rides at the amusement park than in my portfolio. And again there is nothing wrong with a buy and hold strategy as long as you have the life span of a Bowhead whale of around 200 years and of course the patience of a saint😊

I know that I am no good at picking ultimate winners and losers or timing the market with any degree of accuracy and that’s why I created FTM as its more of the lazy man’s way of investing and seeing your wealth growth no matter what. In fact, since inception FTM class A is up 98.91% net of fees.😊

The graph below shows the performance of FTM since inception also notice the impact of the market on FTM in February and March where the 2 arrows are.

At the moment we have the potential of a trade war between the US and China, a possible war with Russia as a flow on from the threat of missile strikes on Syria and just the day to day gyrations of the markets in general from a very tired and very old bull market.

The chart below shows the performance of FTM Class A as plotted against the S&P 500 and as you can see FTM is still lagging the SP significantly over this time. However, I don’t think it will be too long before the lines cross and then diverge with FTM on top.

This Chart is of FTM Class C plotted against the S&P 500 and as you can see, that with a slightly higher annualized rate of return of 10.58% and starting later it tells a different story. As you can see for the most part we matched the S&P 500. Once again it shows the impact of market timing when it comes to traditional buy and hold investments.

So, how did FTM do against our peers?

Its funny for the past few years hedge funds have been complaining that there wasn’t enough volatility in the market and that’s why they lagged the market. Now that we have volatility in spades many hedge funds claim it’s the wrong kind of volatility and thats why they are struggling.

According to the EurekaHedge flash update for April: Hedge funds remained in the red for a second month amid choppy trading conditions and weak global equity performance.

Hedge funds were down 0.51% during the month, outperforming underlying markets as represented by the MSCI World Index2 which declined 2.21% over the same period. On a year-to-date basis, managers declined 0.10% while underlying markets were down 2.24%.

So bottom line is that the average hedge fund lost money for the past 2 months and are down for the year but as an investor you should be happy you lost less than the market…… Seriously when will investors realize that a loss is a loss and losing less than the market should not be seen as a badge of honor.

The Q1 results for FTM are as follows

FTM Class A   +2.24%

FTM Class B  +1.22%

FTM Class C  +2.52%

FTM Class D  +2.5% (Simple Interest)

I also wanted to take this opportunity to remind you that– To celebrate our 8th birthday FTM has waived all fees on investments from now until the 19th of April. That means you could save up to 4% simply by investing now.  So, if you have been on the fence waiting then this is your perfect opportunity to invest in a fund that is spread amongst 227 insurance companies, has never ever had a negative month and isn’t impacted by market falls.

So, if you are looking to start investing or simply top up your existing investment in FTM it’s never been easier and to celebrate turning 8 we are waiving all upfront fees. That’s a saving of up to 4%!

Simply go to https://www.ais.vu/investors/  if you are a new potential investor complete the form and if you are an existing investor then simply log in with your details.

So, if you are sick of gambling or playing the market guessing game, perhaps it’s time you took a closer look at FTM and what it has to offer.

Article by Endre Dobozy


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