Wealth & Finance International - 2022 Fund Awards 21 As a trend-following CTA fund, TGCC M3 Momentum Fund’s mission is to generate outstanding risk-adjusted investment returns over the medium and long term. Indeed, the price trend ahead is uncertain and unpredictable, and investors can find it difficult in recognising and learning from repeating themes. Therefore, the core investment principle of TGCC M3 Momentum Fund is to appropriately manage risk during non-trending periods, ride winner, and cut losing trades systematically across different timeframes to achieve a diversified portfolio. Its disciplined risk management methodology seeks to protect capital and limit downside risk, while skewing returns to the upside to justify the volatility of the fund. Both fund managers - Mr. Tan and Mr. Chua believe that the fund will outperform the global benchmarks, so long as they hold firm to the investment principles underlying the fund. One of the fund risk management policies is to construct a well-balanced portfolio across asset classes. TGCC M3 Momentum Fund has exposure to more than 60 regulated and highly liquid exchange-traded futures markets, of which, close to 40% of the portfolio were dominated by the exotic futures markets particularly from China, Vietnam, Thailand as well as the other Asia markets. Besides constructing a diversified portfolio, Mr. Tan believes that having more exposures into Asia futures market could reduce the correlation of the fund returns against the global markets and CTA peers whilst improving the portfolio’s risk-adjusted investment returns. The fund also adopts a scientific method when it comes to diversifying its investment portfolios. Every futures market has its characteristics and all futures markets added to the fund’s investment portfolios are subject to statistical methods proven to effectively improve the risk-adjusted investment returns. Given that, the fund has zero to negative correlation with traditional investments, private equities, as well as other hedge funds including CTAs. Both fund managers believe that making use of rigorous computerised testing along with TGCC M3 Momentum Fund is one of a few Commodity Trading Advisor (CTA) funds that based in Singapore. Formed in 2006 by Tan Sze Meng and Chua Kim Kian, TGCC M3 Momentum Fund is currently managed by Swiss Asia Financial Services (SAFS) since the fund officially launched in November 2015. It uses systematic, quantitative, trend-following strategy to trade a wide array of global futures markets with an ultimate goal of enabling investors to navigate market opportunities through all market cycle, even in this turbulent market. the trend-following approach can exploit market inefficiencies and achieve alpha in the long run. TGCC M3 Momentum Fund’s disciplined approach to investing has delivered significant returns especially from market overreactions such as during the Covid-19 sell off in March 2020, as well as the recent Russian-Ukraine war in early 2022. Despite the high volatility market environment, the fund was able to capture high double-digit returns that time with year-to-date returns of 62.7% as of March 2020 and 20.2% as of April 2022. The fund has been able to help its investors to navigate market opportunities during such market turmoil, and it is proven to be a good diversifier to the traditional investment portfolio. The fund has seen a superior risk-adjusted return with close to 20% annualised return since its founding in 2006, and it aims to continue achieving positive return that is independent from the economic environment. Best Systematic Risk Management Strategy Solutions - Singapore Aug22538 Both Mr. Tan and Mr. Chua are licensed fund managers and Chartered Financial Analysts (CFA), with Mr. Tan overseeing the overall strategy and risk management of the fund, and Mr. Chua being responsible for daily operations and strategy execution of the fund. Ultimately, it is clear that TGCC M3 Momentum Fund offers something different on the investment landscape. The fund also aims to reach $300 million in AUM via performance and asset raising in long term given that the uniqueness of the fund should attract more accredited and institutional investors. Company: Swiss Asia Financial Services - TGCC M3 Momentum Fund Contact: Lexi Lee, Director of Institutional Business Development Email: [email protected] Website: tgccm3.com Tan Sze Meng (left) and Chua Kim Kian (right), fund managers of TGCC M3 Momentum Fund.
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