RMI™ Active India Model up 80%

Outperformance
RMI Active 10 is up 80% for the year. This is not only a stellar performance for a system driven active model but also the RMI outperformed the underlying benchmark by 30%. This is the largest margin of outperformance for RMI Active India 10 since 2005.
Historical Relative Performance
Though historically RMI has outperformed by a multiple of 2.5 times to the underlying benchmark, post 2008 the RMI has just matched it’s performance with the underlying. Since Sep2013 the RMI has witnessed a trend in outperformance moving up nearly 15% above the underlying in 2013, adding to the RMI’s 30% outperformance till date for 2014. It seems that RMI has started a new outperformance trend vs. the benchmark which should continue well into 2015.
Trades
RMI Active India 10 is designed to conserve cash and optimizing number of trades. RMI entries-exits are designed to capture the trend and stay on a trend till any reversals. The model just had 6 trades during the year (3 entry & 3 exits). This translates to less transaction costs. The current running components have an average gain of above 100% and the top winners (Aurbindo Pharma) still running at above 300% gain over the last 359 calendar days.
Drawdown
Though the model had just two negative months (Jan and July) this year, the model drawdowns were lower compare the benchmark. Historically RMI has faster recovery than the benchmark, which we illustrate in our drawdown tables.