Next Gen Software Revolution

Performance

  • +11.5 %
    since 2021-05-07
  • -
    1 Year
  • -
    Ø-Performance per year
All fees have already been deducted

Risk

  • -7.4 %
    Maximum loss (to date)
  • 0.80×
    Risk factor
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Trading Idea

The software industry is experiencing the renaissance investors were hoping for twenty years ago.
The most valuable global commodity - data - is the root of exponential growth rates and software companies use it to disrupt the existing standards.
This portfolio establishes positions in the global innovation drivers of the software world: From e-commerce to data analytics, from cybersecurity to fintech.
This diversification reduces risk and spreads exposure.

The companies are screened by an array of financial metrics.
Quantitatively, they need to exhibit high sales growth, non-decreasing profit margins, a fair valuation compared to peers, and strong R&D spending growth.
Additionally, we inspect industry-specific metrics such as MAU, Churn, ARR, and CAC.
Qualitatively, we seek companies with excellent academic management, a robust supply chain, and competitive advantages.

To maximize returns, the biggest country exposure is the US. In our belief, the EU is only a limited driver of IT Innovation.
Hence, this portfolio diversifies by investing in Asia - both China & South East Asia. We believe that these countries have plenty of room to grow and will profit immensely from the IT sector's domination. This exposure is achieved through ETFs.

For Innovation, size is only of relative importance: We expose investors both to market leaders who succeed at dominating the market, as well as small high growth firms with the potential of disrupting the industry. Many companies lay in between as established mid-large caps with huge potential upside.
We actively exclude established companies who failed to innovate and adapt to the markets' fast-changing demands. In our beliefs, these value traps are being disrupted by new players and will not succeed to preserve their dominant position.

The investment horizon is long-term (3+ years) as we believe in "time in the market over timing the market". show more

Master data

Symbol
WF00IT2021
Date created
2021-05-07
Index level
High watermark
111.4

Rules

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Registered since 2019-09-20