- These explanatory notes are an integral part of the performance data presented.
- For its Equity Trend Program, Transtrend provides composite pro forma net rates of return data.
- In order to aggregate and compare the rates of return of
individual accounts, a pro forma reporting format is used, i.e., a
standardized format irrespective of specific terms and conditions that
may govern individual accounts in practice. The composite pro forma net
rate of return reflects the pro forma net performance for the relevant
period divided by the aggregate Account Size at the beginning of such
period. Account Size means the account size agreed to by the investor and
Transtrend that establishes the level of trading.
- Pro forma net rates of return are calculated on a daily
basis which compound to a monthly return. Intra-month additions and/or
withdrawals are taken into account when they occur, without distorting
the monthly rate of return.
- The pro forma net performance figure is calculated by
adjusting the actual gross performance figure (1) with the items (2)
- The actual gross performance figure is composed from the
actual gross realized trading result on all transactions closed
out during the day, plus the settlement of net dividend and other
corporate action income/expenses and change of its accruals, plus the
change in unrealized trading result on open positions at the end
of the current day compared to the end of the previous day. The results
include the reinvestment of dividends and other income.
- Actual transaction and position related expenses are
subtracted, such as execution commissions, custody fees and fees for
securities lending, as well as position or transaction related taxes
- Pro forma monthly operating expenses of 1/12 of 0.25% of
the Account Size at the beginning of the calendar month are subtracted,
charged on a daily basis.
- Pro forma interest cost or income is subtracted or added
for currency balances in the trading accounts together with funds
transparent to Transtrend which are related only to these accounts and
can be transferred to such accounts without the investor’s consent to each
specific transfer. The amount of daily pro forma interest is estimated
per currency by multiplying the daily settled cash (separating short
sale proceeds) and the CFDs financing needs/proceeds and unrealized
profit/loss on CFDs with a general representative reference interest
rate that is corrected with a general representative haircut and
converted to a daily rate. The resulting interest is converted into the
base currency and totaled and may be positive or negative.
- A pro forma monthly management fee of 1/12 of 0.75% of the
Account Size at the beginning of the calendar month is applied, charged
on a daily basis. This rate is applied as of January 1, 2017. From February 1, 2016 until December 31, 2016, a rate of 1/12 of 1%; from January 1, 2014 until January 31, 2016, a rate of 1/12 of 1.5%; and before January 1, 2014, a rate of 1/12 of 2% was applied.
- The actual gross performance figure (a) adjusted for items
(b) through (e) above, is charged with a pro forma performance fee of
- A negative monthly composite rate of return is mitigated by
a consistent book entry reversal of the accrued pro forma performance
fees, irrespective whether the book entry reversal was actually
effectuated. A similar effect occurs for a positive monthly composite
rate of return, where a consistent book entry of pro forma performance
fees is made, irrespective whether the book entry was actually
effectuated. The consistent book entry (reversal) of pro forma
performance fees likely reduces the volatility of the composite rates of
return in comparison to situations where performance fees are
periodically settled. Periodic settlement of performance fees empties
the performance fee reserve so that negative, or positive, rates of
return occurring after the settlement date will only be moderated by the
give-back, or accrual, respectively, of the amount of newly built-up
performance fees after this settlement date. Consistently giving back
accrued pro forma performance fees in periods of negative rates of return may also result in an underestimation
of drawdowns in comparison to situations where performance fees are
- As the rates of the management fee charged by Transtrend to
its investors participating in the Equity Trend Program have come down
over the years, the pro forma management fee also have been adjusted to
bring it more in line with actual management fees. Lowering the pro
forma management fee has, with all other things being equal, among
others, the following effects: a) drawdowns will be less deep and b) the
duration of peak-to-valley drawdowns may be shorter.
- Where a rate of return is presented on a composite basis, the composite
rate of return might be different from the rate of return experienced by
an individual investor participating in Transtrend’s Equity Trend
Program, because of, among others, differences in fees, Account Size,
actual operating expenses and portfolio composition.
- Although Transtrend has exerted great care in creating the performance overview, it cannot be held responsible for computational or
THE PERFORMANCE OVERVIEW DOES NOT CONSTITUTE AN OFFER TO FURNISH INVESTMENT ADVISORY
SERVICES BY TRANSTREND IN THE U.S. OR TO ANY U.S. PERSON. TRANSTREND’S
INVESTMENT ADVISORY SERVICES ARE NOT OFFERED IN THE U.S. OR TO ANY U.S. PERSON.
THE VALUE OF YOUR INVESTMENT CAN FLUCTUATE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.