Mondiale Asset Management

Ltd. (Trading)

Fund Investment Objectives

Mondiale employs a disciplined investment approach that is: Systematic. Quantitative trading strategies remove discretion and emotion from the investment process. Computer-driven trading rules monitor global markets on a 24-hour basis. Mondiale's proprietary quantitative strategies have been (1) developed around research hypotheses, (2) validated by historical back-testing, and (3) meticulously programmed to facilitate systematic computer-driven implementation. This investment methodology removes the significant human risk associated with non-systematic, discretionary investment decisions that might otherwise be made by individual managers. Short-Term Trading. Mondiale's strategies have an average hold period of approximately 1 day. Less than 1% of trades have a trade duration longer than 5 days. Diversified Global Asset Classes. Mondiale portfolios may trade up to 65 global futures contracts including equity indices, energy, metals, agricultutural and softs, fixed income, and foreign exchange. Diversified Strategy Concepts. Mondiale employs 22 distinct strategies based on statistical pattern recognition, momentum, and mean reversion models. For each of these distinct strategies, a broad range of parameter input values are utilized to ensure robustness and signal diversification. Importantly, capital preservation and systematic risk management are integral to each trading model. All trades are allowed a predetermined maximum loss and when a position crosses this loss threshold, it is immediately closed out. Dynamic Portfolio Risk Allocation. Mondiale's portfolio allocation process dynamically determines appropriate parameter, strategy and market exposures for the current market environment on a week-by-week basis. Historical portfolio allocation decisions are made out-of-sample, ensuring real-time robustness. The process is designed to react to long-term but slowly evolving changes in market dynamics.