Logo-amundi-asset-management
Fund manager: Vector Asset Management
Foundation year: 2001
AuM: 350.000.000€

Vector Asset Management – the power of specialization!

Vector is a Luxembourgish asset manager that specializes in the active management of global equity funds.

Our flagship-fund, Vector Navigator, has been investing in companies that combine strong fundamentals with attractive valuation for over 15 years. The investment team employs a disciplined, fundamental analysis via a proprietary stock-selection model, assessing over 2500 companies worldwide. The model replicates the approach taken by traditional investors whilst avoiding common behavioural biases. Its output is used to support the decision making of the team, who combine the model’s systematic analysis with their assessment of a company’s risk profile.

Vector is a Luxembourgish asset manager that specializes in the active management of global equity funds.

Our flagship-fund, Vector Navigator, has been investing in companies that combine strong fundamentals with attractive valuation for over 15 years. The investment team employs a disciplined, fundamental analysis via a proprietary stock-selection model, assessing over 2500 companies worldwide. The model replicates the approach taken by traditional investors whilst avoiding common behavioural biases. Its output is used to support the decision making of the team, who combine the model’s systematic analysis with their assessment of a company’s risk profile.

More ...

Do you always have to pay taxes on allocation funds?

We don’t have to tell you that the capital gain taxes of the Belgian government can have a profound effect on your return on investment. Generally, when an investor sells his Fixed-Income or Allocation fund he will owe the tax authority 27% of the gain he had made on the fixed-income part of his investment. If however you invest in a Flexible fund that uses derivatives, like futures, to hedge its market risk then you will be able to avoid paying this amount. This advantageous tax treatment, combined with the extremely low yields in the bond market make these kind of Flexible funds an excellent alternative to your classic Bond-Equity allocation fund.

Can past return information predict the future?

If you are like most investors then you have probably wondered whether the past performance of an asset manager has any value in predicting future performance. Our in-house research (link) shows that – when you measure performance over the medium-term (3 years) then the returns a manager obtained in the past gives you a hint of the performance to expect in the future! If you use shorter periods to measure performance (1 year), however, then this conclusion does not hold. We hypothesize that over these short periods the performance can be disproportionally driven by - for instance - a successful sector bet, which is unlikely to be repeated in the future. In summary, it seems that chasing short-term performance can hamper your investment success…

Diversification: the number one rule of investing

Many investors make the mistake of holding positions that are too concentrated. A classic example is that of a bank director who receives some stock options every year and who – after many years – holds a scary amount of equity of his employer. When 2008 hits and financial stocks crash the director is now not only out of a job, but also loses a significant part of his capital. Perhaps a more recognizable story is that of the Belgian investor who holds a disproportional amount of his equity portfolio in BEL20 stocks. The lesson to be learned here is that investors aren’t rewarded for bearing company, sector or country-specific risk. Therefore, at Vector, we are firm believers of investing on a global scale: there are more opportunities to be had and you are fully diversified.

The hidden dangers of factor investing

Nowadays there is a lot of buzz about the advantages of investing via a smart-beta framework. In general, this implies taking concentrated positions in stocks that supposedly should outperform (i.e. value, small caps). In reality, smart-beta is nothing new – Vector has been investing via the principle for over 15 years. An important disclaimer that is often omitted is that factor-investing can be very prone to crashes! For instance, if you had invested a single dollar in a “Momentum”-strategy in 1932 you would have had to wait for approximately 25 years in order to get your money back. A model which dynamically weights the right factors at the right time can keep these risks in check and to us it seems to be a necessary condition for investors who are looking to include factor-exposures in their portfolio!

Ces informations proviennent de tiers au sens de l’article 2.24.3 des Conditions Générales de Binck et n'émanent donc pas de Binck. Binck n’exerce aucun contrôle quant au contenu de ces informations.