RMI™ Reversion Europe 50 outperforms
RMI Reversion Europe 50 is a passive model that follows the trend of the market and does not go cash. If judging performance for an active strategy when the markets are trended is hard and beating the market is tough, doing so for a passive strategy would seem almost impossible. Still RMI Reversion Europe 50 outperformed the benchmark up to 3 times since 2001 – it has mostly been superior to the underlying market.
Style
The RMI analytics model re-weights the Europe 50 components. It’s a passive model which has a holding period of 6 months for the basket and does not go cash. Instead it mirrors the trend of the market and outperforms at lower risk.
Relative Outperformance
RMI Europe 50 has delivered a performance 3 times over the last decade vs. the underlying benchmark. The annualized return to date is of 5.72% compared to -1.21% of the benchmark, and this at just a half of the volatility of the market. Also, there are no significant drawdowns throughout the period.
RMI is based on a statistical universality that leads to outperfomance compared to an underlying Universe (Europe 50 in this case), the current model delivered an unparalleled feat by beating the Europe 50 every year since 2001.
Though rare, the very fact that this performance is backed by a volatility that is half (10.99%) of the Europe 50 volatility (20.96%) only confirms that RMI methodology is far superior than any available indexing techniques on the market.
This year’s returns are barely 1% lower than of the benchmark (-0.36% compared to 0.38 of Europe 50). Though a blip in stellar performance, the underperformance remains marginal. We expect RMI Reversion Europe 50 to continue allocating superior weights to the Europe top 50 beating and outperforming the market.
The RMI analytics model re-weights the Europe 50 components. It’s a passive model which has a holding period of 6 months for the basket and does not go cash. Instead it mirrors the trend of the market and outperforms at lower risk.
Relative Outperformance
RMI Europe 50 has delivered a performance 3 times over the last decade vs. the underlying benchmark. The annualized return to date is of 5.72% compared to -1.21% of the benchmark, and this at just a half of the volatility of the market. Also, there are no significant drawdowns throughout the period.
RMI is based on a statistical universality that leads to outperfomance compared to an underlying Universe (Europe 50 in this case), the current model delivered an unparalleled feat by beating the Europe 50 every year since 2001.
Though rare, the very fact that this performance is backed by a volatility that is half (10.99%) of the Europe 50 volatility (20.96%) only confirms that RMI methodology is far superior than any available indexing techniques on the market.
This year’s returns are barely 1% lower than of the benchmark (-0.36% compared to 0.38 of Europe 50). Though a blip in stellar performance, the underperformance remains marginal. We expect RMI Reversion Europe 50 to continue allocating superior weights to the Europe top 50 beating and outperforming the market.