The results of the T-Advisor model portfolios in 2016

T-Advisor, as wealth management solution for individuals and professionals, has not only tools for own investments, but also proposals to follow or even copy. That’s why our system has its own model portfolios. They are nine: five related to risk profile (from aggressive to very conservative) and five related to countries (Germany, UK, Spain in Europe and Mexico and Nasdaq 100 in the Americas).

How do they work? We select between four and six ETFs for the risk-profiled portfolios and up to ten stocks for the country portfolios. The main point for us is capital preservation. That’s why our results, when they are negative, are better than the markets. To obtain those results, we rebalance the portfolios every two months. These rebalances let us improve the results, as we exclude the positions more affected by market negative waves and substitute them for better stocks or ETFs. Diversification is also part of the strategy. We select the securities with the best score and relevant figures to obtain the best results.

These are the results for 2016 for our risk-profiled model portfolios:

1-Y-return 2016 1-Y-return 2015 Volatility Sharpe ratio
Aggressive

5.85%

-2.53%

12.51%

1.51

Dynamic

5.29%

1.47%

11.14%

1.52

Balanced

1.79%

3.53%

6.18%

1.42

Conservative

2.68%

1.52%

2.82%

1.35

Very conservative

0.90%

0.80%

2.07%

0.55

The figures were collected on January, 2nd, and we compare the results of 2015 and 2016. There is a general improvement (except the balanced strategy, although it is positive anyway). We have to remember that the year was quite unstable in the markets, as there have been several surprises that affected negatively. Despite this instability, none of our strategies closed with negative returns.

And now the results of our country portfolios:

1-Y-return 2016 1-Y-return 2015 Volatility Sharpe ratio Index
Germany

41.37%

44.70%

14.01%

6.98

6.87% (DAX)

Spain

1.31%

5.74%

16.17%

2.13

-2.01% (Ibex)

México

14.58%

23.96%

13.98%

5.61

+6.20% (IPC)

Nasdaq 100

24.68%

2.97%

9.58%

4.71

+7.50% (Nasdaq)

UK

9.03%

18.32%

15.99%

4.69

+14.43% (FTSE)

Except the UK portfolio, our strategies outperformed their benchmarks, but even the British one obtained a quite good return. The best performer was the German strategy again and the worst was the Spanish, but in this last case, the benchmark Ibex finished with a negative result.

Learn more about our portfolios and the assets included in our platform. Aren’t you tempted to clone them? We have a tool to let our users do it. Let’s try it and compare the results with your investments!

Weekly market opportunities in T-Advisor: the best on January, 16th

T-Advisor updates weekly a list of market opportunities from several stock exchanges around the world. We sum up a selection of the best ones:

EUROPE

  • Nexans (Paris). A manufacturer of copper and optical fiber cable products for the infrastructure, industrial (particularly the shipbuilding, petroleum and aeronautical sectors) and construction markets.

Nexans main figures in T-Advisor

Nexans chart in T-Advisor

AMERICAS

  • EcoRodovias (Sao Paulo). An intermodal logistic company focused on highway concessions and associated services.

EcoRodovias main figures in T-Advisor

EcoRodovias chart in T-Advisor

ASIA-PACIFIC

  • Hang Seng Bank (Hong Kong). A commercial bank whose majority is held by HSBC Group. It is the second largest bank in Hong Kong.

Hang Seng Bank main figures in T-Advisor

Hang Seng Bank chart in T-Advisor

Find more opportunities from the main exchanges in the world on our module “Market opportunities” in T-Advisor.

After the surprises in 2016, what can we expect for 2017?

Evolution of the main markets in 2016

Did you have fun this year? Well, it was not very bad, because there was some rollercoaster in the stock exchanges: Brexit, the unexpected victory of Donald Trump for the US presidency, the recent rate hike by the Fed, the Italian referendum or the ECB announcement about the cut of the money fuel have been some of the “funny” events for the markets.

We are now at the end of the year with the sight on 2017. What can we expect? Certainly, there are some people who do not believe in financial predictions, because they are usually wrong, as Barry Ritholtz jokes in this post. Others make also fun about it with the outrageous predictions, as Saxo Bank has positioned in the last years.

Others keep on doing some forecast about probable, but not sure, evolutions of the markets. For instance, Black Rock perceives three main trends:

  • Accelerating reflation in US
  • Low returns in investments that will force investors to more risky assets, as equities or alternatives.
  • Dispersion, with a widen gap between winners and losers in the stock markets.

The main risks for Black Rock are related to politics: the Brexit negotiation, the Trump agenda in US or the next elections in France and Germany are some critical points.

The forecasts by Goldman Sachs coincide partially with Black Rock, because the main ideas are: higher growth but higher risks and slightly higher returns.

The list could be longer, but there are some common points: investors perceive that politics will play a big role next year and will influence the market evolution and people will have to move to more risky assets. Monetary policy and currency evolution will also main themes, as they will condition trade and bonds.

Yes, predictions are usually wrong, but we cannot avoid reading them, because, somehow, experts are anticipating probable trends. Investor: Be ready for risky times.

T-Advisor teach to manage your portfolios with easy videos

T-Advisor corporate message

We currently live in a time in which videos has become the main tool to communicate. In our case, we are always on the wave and that is why we have produced a collection of video tutorials to teach how to manage your portfolios in T-Advisor. This collection is organised in our platform in three different items:

  • I want to plan my investment goal and create a portfolio to achieve it.
  • I want to analyse my investment portfolio and assess it.
  • I want to look for assets to create an investment portfolio.

We are aware that our tools have some complexity, if you are new in finances, but we also know that our platform is one of the most powerful and complete in the market. And we offer it for individuals just for 0 euros. These videos and their organisation in three different items depending the personal interests help everyone to enjoy finances.

If you want to take advantage of using T-Advisor, just click on the following links to show these short tutorials and learn more about your platform to manage professionally your financial investments:

Just enjoy them to improve your financial abilities!

Capital preservation: more than a strategy

People out from investments usually think that this business is easy and high returns are the common rule. If you say: “I invest”, then they look at you as a rich person, when you probably try to avoid a lost of purchasing power caused by inflation. That is usually the most conservative strategy, but the idea behind that behaviour is capital preservation.

Capital preservation is defined as a conservative strategy that tries to avoid the loss of value of your investments. Some investors are just quiet if their money does not decrease, but this little ambition has an enemy: inflation. If the financial goal reduces only to that narrow meaning of capital preservation, they will surely lose purchasing power in the long term. That’s why this strategy is recommended for safe short-term investments, as bonds or certificates.

However, capital preservation means something else, because it is behind every investment strategy. Whether it is more aggressive or more conservative, it does not mean that the goal behind the scene will not be the same: to keep at least the same as we invest and keeping the same purchasing power. Possibly, someone argues that the more aggressive portfolios are designed to obtain the highest return accepting volatility, but no investor is so fool to accept losing their money without a B-plan.

This B-plan to preserve the capital is rebalancing. When an investor receives alerts from their system, he has to decide when to change his strategy. Regular investors are not traders, but they prefer to invest in the long-term. That’s why these investors have to avoid panic in certain periods when markets are bearish or react negatively due to any external reason (e.g. Brexit or similar). Investors have to look at the long term and analyse with their tools the real effect over their strategy and if they have to rebalance their portfolios. What for? First of all, to preserve their capital; secondly, to serve their strategy (more conservative or more aggressive).

In other words, as the main goal for companies is surviving in the markets, the main goal for an investor is preserving his capital. Returns will come, higher or lower, but these will be the second step. Alerts, optimising modules and bootstrapping systems (as T-Advisor has) are the tools to be successful for it.

Market opportunities by T-Advisor: CA Immobilien

T-Advisor, through its tool Market Opportunities, has detected the company CA Immobilien listed in the Vienna Stock Exchange, as an opportunity for investment.

These are the main figures about performances and volatility in the last years:

CA Immobilien main figures in T-Advisor

The chart shows the evolution in the last year:

CA Immobilien chart in T-Advisor

The technical analysis reveals also more data:

CA Immobilien technical analysis in T-Advisor

Finally, the risk analysis is as it follows:

CA Immobilien risk analysis in T-Advisor

CA Immobilien is an Austrian real estate company with branch offices in Germany and some of Central and Eastern European countries. Its core business involves leasing, managing and developing office buildings. Founded in 1987, CA Immobilien controls property assets of around € 3.7 bn.It is involved with a number of large and notable buildings, including Tower 185, the Skyline Plaza complex in Frankfurt and the Europacity complex in Berlin

Rental income in 2015 reached €154.8 million, a 6.6% more than in 2014. The net result increased 273.5% between 2014 and 2015, up to €316 million, as a result of the cumulative revaluation. The share price doubled in the last 5 years.

Ranking T-Advisor: The best stocks and funds in November

What stocks and funds were the best in November? T-Advisor publishes its ranking taking into account the score. T-Advisor patented score provides an asset rating (bullish, neutral or bearish) based on key performance indicators and technical analysis.

The best shares in November were as it follows:

Company Score Perf. YTD Volatility Weekly VaR Market

EUROPE

Sinnerschrader

9.94

26.70%

30.98%

-7.49%

Deutsche Boerse
Trigano

9.86

25.95%

31.51%

-6.30%

Paris
Orion Corp.

9.81

25.99%

19.03%

-5.39%

Helsinki
Chargeurs

9.77

76.22%

25.89%

-6.13%

Paris
Thales

9.76

33.59%

21.40%

-3.42%

Paris

USA-CANADA

MSK Instruments

10

61.81%

24.99%

-6.71%

Nasdaq
Time Warner

10

43.67%

25.88%

-5.00%

NYSE
PTC

10

43.32%

25.79%

-6.14%

Nasdaq
Reinsurance Group

10

42.51%

18.10%

-3.90%

NYSE
T-Mobile US

10

41.59%

24.81%

-5.54%

Nasdaq

ASIA-PACIFIC

Geely Auto

10

93.22%

38.41%

-8.36%

Hong Kong
Galaxy Enterteinment

10

53.78%

34.68%

-7.01%

Hong Kong
Nissan Chemical Industries

9.92

39.04%

27.41%

-7.28%

Tokyo
Lion Corp.

9.82

62.41%

41.30%

-9.06%

Tokyo
Asahi Kasei Corp.

9.74

23.10%

31.04%

-6.06%

Tokyo

LATAM

Grupo Security

9.15

26.90%

19.48%

-3.92%

Santiago de Chile
SM Banco Chile

9.10

14.48%

12.25%

-3.07%

Santiago de Chile
Cerro Verde

8.64

41.45%

41.48%

-7.26%

Lima
Capsa

8.58

213.19%

41.05%

-8.31%

Santiago de Chile
Edelnor

8.47

9.09%

27.63%

-4.53%

Lima

The best funds in November were as it follows:

Fund Score Perf. YTD Volatility Weekly VaR Managing company

EQUITY

JPMORGAN FUNDS – AMERICA MICRO CAP FUND

9.65

20.33%

15.96%

-4.71%

JP Morgan
EDMOND DE ROTHSCHILD FUND – US VALUE , YIELD – A

9.57

22.41%

24.56%

6.46%

Edmond de Rothschild
AXA ROSENBERG US SMALL CAP ALPHA FUND CLASS A USD ACCM

9.55

16.53%

18.85%

-4.17%

AXA
M&G NORTH AMERICAN DIVIDEND FUND – C – EUR – ACC

9.39

17.71%

17.54%

-4.56%

MG Investments

FIXED INCOME

CS BOND FUND LUX HIGH YIELD USD I CAP

8.77

11.19%

5.75%

-1.83%

Credit Suisse
CARMIGNAC PORTFOLIO GLOBAL BOND

8.61

10.07%

5.33%

-0.96%

Carmignac
BLACKROCK PY ST-SBI

8.55

1.71%

7.87%

-1.74%

BlackRock
FTIF – TEMPLETON GLOBAL TOTAL RETURN FUND A(ACC) EUR

8.52

4.53%

16.77%

-4.56%

Franklin Templeton
FF-ASIAN HIGH YIELD Y

8.49

13.48%

4.35%

-1.04%

Fidelity
JPM INCOME OPPORTUNITY PLUS A (ACC) – USD

8.46

7.25%

4.01%

-0.96%

JP Morgan

 

Market opportunities by T-Advisor: 3i Group

T-Advisor, through its tool Market Opportunities, has detected the company 3i Group, listed in London Stock Exchange as an opportunity for investment.

These are the main figures about performances and volatility in the last years:

3i Group main figures in T-AdvisorThe chart shows the evolution in the last year:

3i Group chart in T-Advisor

The technical analysis reveals also more data:

3i Group technical analysis in T-AdvisorFinally, the risk analysis is as it follows:

3i Group risk analysis in T-Advisor

3i Group is an investment and venture capital company based in London focused on mid-market Private Equity, Infrastructure and Debt Management. It was created in 1987, when the owners (the British banks) sold off their stakes to create a new company the old Investors in Industry (whose initials provided the name 3i).

Total return of the fiscal year closed at March, 31st, 2016, registered an improvement of 25%, up to GBP 824 million, compared with the same period finished in March 2015. Assets under management also increased a 3.9% in the fiscal year 2015-2016, up to GBP 13,999 million, compared with the former fiscal year. The share price multiplied almost three times in the last five years.

Mexico, Trump won the election

Mexico is an example of a developing country that evolved into an industrial nation amongst the 15 largest in the world in a short period. This is the same country that suffered the bond crisis in the 1980s and that signed the NAFTA with a great positive effect for its economic development. This development has also effects in their financial markets, that boomed with a modernisation after the liberalisation of the sector and the investment of foreign entities.

The line was very positive in the global trend, as it registered a bullish bias the main part of the year. However, there was a break… after the second Tuesday in November. Donald Trump won the election and the promises of tightening the relationship with the southern neighbour shocked the Latam markets and, specially, the Mexican one. The line is clear in the T-Advisor trend evolution chart:

Global Trend Evolution chart of Mexico in T-Advisor

The IPC, the Mexican benchmark, scaled a 30% in the last five years, but this positive trend changed dramatically at the beginning of the month.  If we look at the chart, the drop is clear and the change in all technical analysis references is relevant.

IPC YTD evolution in T-Advisor

Compared with other Latam stock exchanges, Mexico didn’t recover from the Trump shock:

Comparison Latam markets in T-Advisor

The question is: what is going to happen after this shock? Trump has relaxed somehow his strong comments about the relationship with Mexico, but nobody knows his real intentions when he takes office in January. Will he order the building of the wall in the Mexican border? Will he abandon the NAFTA? Will he control the Mexican immigration? All these decisions would have strong negative effects in the economy of Mexico and they would also shock the financial markets. Our bootstrapping tool reveals that there are 25% possibilities of a negative return of the IPC in the next two years. However, there are 40% probability of positive returns between 2% and 45%.

Mexico IPC bootstrapping in T-Advisor

This analysis is based on the historical evolution and considers that past performances do not guarantee future returns. In any case, these results can also be altered by sudden political decisions. Many analysts consider that 2017 will be a volatile year linked to political instability. We will soon discover how it will affect to Mexico.

Market opportunities by T-Advisor: Healthcare Services Group

T-Advisor, through its tool Market Opportunities, has detected the company Healthcare Services Group, listed in Nasdaq, as an opportunity for investment.

These are the main figures about performances and volatility in the last years:

Healthcare Services Group main figures in T-Advisor

The chart shows the evolution in the last year:

Healthcare Services Group chart in T-AdvisorThe technical analysis reveals also more data:

Healthcare Services Group technical analysis in T-AdvisorFinally, the risk analysis is as it follows:

Healthcare Services Group risk analysis in T-Advisor

Healthcare Services Group is a company specialised in housekeeping, laundry, dining and nutrition services mainly in the seniors living and hospital markets. Founded in 1976, its current market capitalisation is US$ 2,769.92 million. Revenues increased an 11% in 2015 compared with 2014, up to US$ 1,436.8 million. Net income jumped a 165.5% in 2015 compared with 2014, up to US$ 89.05 million, as a result of the improvement of the revenues and the control of the costs. The share price doubled in the last five years.