Important notice

The performance overview that these notes form part of does not represent an offer or a solicitation to open an account or invest in a fund for which Transtrend acts as alternative investment fund manager. An investment in Transtrend’s Equity Trend Program exposes the investor to a high level of investment risk on worldwide equity markets selected by Transtrend due to the fact that it can take long and short positions in equities or equity derivatives (such as contracts for difference ("CFDs") and futures) and due to the application of leverage, mainly through borrowing money. No assurance can be given that an investor will realize a profit on its investment or that an investor will not lose some, all or amounts in excess of its investment. No representation is being made that any investment will or is likely to achieve profits or losses similar to those shown.

Explanatory notes to the performance data of Transtrend's Equity Trend Program

  • 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) through (6).
    1. 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.
    2. 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 payable.
    3. 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.
    4. 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.
    5. 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.
    6. The actual gross performance figure (a) adjusted for items (b) through (e) above, is charged with a pro forma performance fee of 20%.
  • 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 periodically settled.
  • 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 clerical errors.

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.