1741 Asset Management (1741

SIF Diversified Trends)

Fund Investment Objectives

The SIF DIVERSIFIED TRENDS strategy is a CTA strategy that invests based on a systematic, non-discretionary, trend-following approach. Both financial theory and empirical evidence demonstrate that price trends can and do occur in the financial markets. Funds can profit from these trends and generate a positive return over the long term by systematically going long on positive trends, while shorting negative trends. By combining multiple long as well as short positions, and exploiting historically low correlations between individual instruments, such trend-following strategies have the potential to generate positive returns in both rising and falling markets, and are therefore often an effective means of diversifying investors' portfolios. In order to achieve its objective, the Diversified Trends strategy seeks to identify persistent trends based on proprietary, in-house models. The strategy invests in multiple asset classes including money markets, bonds, equity indices, currencies and commodities, and its investment universe consists of over 90 futures and forwards. In order to improve the strategy's stability, a risk management tool applying the risk diversification concept determines optimal portfolio weightings. These are adjusted on a daily basis.