FAQs

Question:
Many global equity funds end up heavily weighted in U.S. tech stocks. Is this fund essentially a tech fund in disguise or is it truly diversified?

Question:
The strategy mentions AI and Natural Language Processing. How exactly does your AI-driven process work, and how does it differ from a typical quant or fundamental approach?

Answer:
AI is at the core of our investment process. We use Natural Language Processing (NLP) models to scour unstructured data like corporate earnings call transcripts, regulatory filings, management presentations, and news articles. By analyzing these textual disclosures across 350+ industries, our AI system detects early signals of improving or deteriorating trends in each industry.

The output is a set of predictive industry “trend scores” – essentially a gauge of which industries are gaining momentum. We then buy stocks early in an industry cycle when our AI indicates strengthening fundamentals and later take profits as that cycle matures. This means the portfolio is built around themes where our models see positive momentum (e.g. rising demand, better earnings outlook) before it’s fully reflected in stock prices.

Unlike traditional quant funds that might rely purely on market prices or backward-looking financial metrics, our approach reads forward-looking insights from textual data. We focus on information that company insiders and industry experts reveal – for example, what CEOs are saying about future orders or expansion plans – rather than just historical price patterns.

We deliberately avoid noisy or superficial data (we ignore short-term stock price moves, social media chatter, and generic news headlines) to focus on substantive “insider” information. This gives us a fundamental-like insight, but it’s extracted systematically by AI. Moreover, our process is adaptive: the AI continuously learns which data sources are most predictive and drops those that aren’t adding value. In essence, the fund operates at the intersection of quantitative discipline and fundamental insight – using machine learning to read and interpret vast amounts of text that a human team couldn’t, and doing so in a repeatable, emotion-free manner.

This is very different from a typical fundamental fund (which might rely on a few human analysts) and from a classic quant strategy (which might ignore qualitative insights altogether). Our AI-driven process has been in use since 2017 and has consistently identified industry trends early, contributing to the fund’s strong performance (over 20% annualized to date with less volatility than the markets).

Question:
Can you summarize the fund’s basic characteristics? For example, is it long-only or does it use leverage? What is the liquidity, and under what regulatory structure does it operate?

Answer:
The Global Equity Trends Fund is a long-only equity fund with no leverage. We do not short stocks or use borrowed money – the strategy is purely to buy a diversified basket of equities and let the stock selection drive returns (risk comes only from the equity market, not from added leverage). The fund offers daily liquidity – investors can subscribe or redeem on any business day at the daily Net Asset Value.

Structurally, it’s set up as a UCITS-compliant fund domiciled in Luxembourg, which means it adheres to strict European regulatory standards and oversight (regulated by the CSSF in Luxembourg). This UCITS structure is designed for investor protection and transparency. We have multiple share classes in EUR and USD, so investors can choose their preferred currency to invest.

In summary, the fund provides an institutional-grade structure – a regulated, daily-liquid vehicle with no leverage and global reach – making it a convenient and safe platform for allocators to access our strategy.

Question:
What is the fund’s performance objective, and how has the fund actually performed to date?

Answer:
Our performance objective is to deliver significant outperformance over global equity markets. Concretely, we aim for about 5% per year above the MSCI World Index over a full 5-year investment cycle. This implies targeting mid-teens annual returns (for example, if MSCI World averages ~10% in a period, we strive for ~15% annual returns or better).

In terms of actual track record, the strategy has exceeded that goal so far. Since inception in 2017, it has produced approximately 22% net annualized returns (after all fees). This is well above broad market indices over the same period. These returns were achieved with an annualized volatility around ~13,8%, resulting in a Sharpe ratio of roughly 1.5 – indicating strong risk-adjusted performance.

All portions of our track record have been independently audited, and the live fund performance is transparent. In fact, we publish the strategy’s index on Bloomberg (ticker BCKT0632 Index) so that investors can monitor performance in real-time. Overall, the fund’s goal is consistent high active returns, and historically it has delivered over 20% per year, handily outperforming the global equity benchmark over multiple years.

Question:
Who is the fund manager, and what is the fund’s operational setup (custodian, administrator, etc.)?

Answer:
The fund is managed by Keith Bortoluzzi, an experienced portfolio manager who has been a pioneer in applying AI to equity investing. Keith has over a decade of experience in systematic investing and was ranked in the top 1% of European equity fund managers over 3- and 5-year periods in his category.

He started using NLP-driven models in live portfolios as early as 2017 and has consistently outperformed with this approach. In 2023, after managing money for others (including a €100M mandate in Europe), Keith launched this fund to fully employ next-generation AI techniques.

Importantly, he has “skin in the game” – about 90% of his total net worth (including real estate and illiquid assets) are invested in the fund, alongside clients, which aligns his incentives with investors in the fund. You can take comfort that the team is deeply committed to the strategy’s success on both a professional and personal level.

On the operations side, the fund has a robust, institutional-grade setup. It is launching in December 2025 on a Luxembourg UCITS platform in partnership with Credit Agricole Indosuez. Ternary Fund Management (Singapore) is the investment manager of the fund. Our custody and fund administration are handled by Credit Agricole Indosuez/ CACEIs and BNP Paribas – well-established banks that ensure the safekeeping of assets and accurate NAV accounting.

PwC serves as the independent auditor of the fund’s financial statements. We also have Kepler Chevreux, Macquarie & BNP Paribas as brokers to facilitate trade execution and financing as needed. In short, the fund’s operations are run with the same rigor and oversight you’d expect from any top-tier global fund: a seasoned manager backed by a strong team, and trusted service providers (custodian, admin, auditor) ensuring everything is handled correctly. This structure allows allocators to invest with confidence in the fund’s operational integrity and governance.

Question:
What risk management practices are in place? For example, how do you handle position sizing, liquidity, and other risks in the portfolio?

Answer:
We employ multiple layers of risk management to protect investors. Some of our key risk controls include:

• Position Sizing & Concentration: The portfolio is run in an equal-weight style – each individual stock position is typically around 0.5% – 1.0% of the portfolio. We cap any single holding at roughly at most at +1% overweight relative to its index weight. This ensures no one position can dominate performance. As a result, our top 10 holdings compose less than 20% of the fund, whereas in many indices or traditional funds the top names could be 30–40%+. This low concentration approach naturally limits stock-specific risk.
  
  
• Liquidity Management: We strictly invest in liquid markets and stocks. The fund trades in the 28 most liquid global exchanges (US, Europe, Asia, etc.), and even smaller positions are in names that trade millions of dollars a day. AS of October 2025, and considering the liquidity of our least liquid stocks, we could liquidate ~$1bn of assets in about 3 trading days without materially impacting prices, based on the “3rd of daily volume” rule. Our least liquid holding is still a mid-cap that trades around $7 million of value daily, which is a very manageable liquidity profile. This focus on liquidity means we can adjust the portfolio quickly as needed and handle large investments or redemptions smoothly.
  
  
• Fundamental Risk Checks: We incorporate fundamental safeguards in our process. For example, we avoid companies with negative earnings revisions or clear fundamental red flags. If our data indicates a company’s outlook is deteriorating (e.g. analysts cutting profit forecasts), we typically won’t initiate or will exit that position to sidestep idiosyncratic blow-ups. We prefer to wait until momentum and fundamentals turn positive again before investing. This rule helps us dodge value traps or companies facing serious issues (product problems, management turmoil, etc.), thereby reducing downside risk from individual stocks.
  
  
• No Leverage or Exotic Instruments: The fund does not use leverage, derivatives, or short-selling to amplify returns. By being long-only and unlevered, our risk exposure is straightforward – it comes from the underlying equities themselves. We don’t add extra financial risk on top. We also maintain a balanced spread across sectors and regions (as noted, we’re not overly exposed to any one sector or country), which helps dampen volatility.
  
  

Question:
Are there any ESG (Environmental, Social, Governance) mandates or exclusions (e.g., avoiding certain industries) in this fund?

Answer:
Yes, the fund is compliant with SFDR article 8 regulations, meaning it promotes environmental characteristics, specifically a reduction in the portfolio’s carbon footprint.

However, we do not rely on blanket exclusions or ethical screens. Instead, we take a pragmatic “open universe” approach: we retain the flexibility to invest across all sectors and geographies if the opportunity is compelling, while integrating carbon intensity into our investment process as a risk-aware overlay.

Rather than filtering out industries like energy or defense outright, we assess companies on their emissions profile, improvement trajectory, and ability to transition. Our AI-led process naturally favours quality, forward-looking businesses — which often align with better environmental metrics — but without compromising the return focus or style integrity of the strategy.

We believe this approach balances responsibility with performance: it allows us to reduce carbon exposure over time while remaining unconstrained and alpha-focused. Investors benefit from a globally diversified, return-driven strategy that incorporates ESG considerations meaningfully and transparently, without rigid constraints or greenwashing.

Question:
What fees do investors pay, and what is the minimum investment to come into the fund?

Answer:
The fund has a transparent fee structure with two components: a 1.5% annual management fee and a 15% performance fee on returns above the MSCI ACWI benchmark. The performance fee is only charged on outperformance (we must beat the MSCI All Country World Index for it to apply), aligning our incentives with investors.

There are no upfront subscription fees or redemption fees charged by the fund – 100% of your capital goes to work in the strategy. Aside from the management and performance fees, the fund bears standard operating expenses (administration, custody, audit, etc.), but we keep these lean – the total ongoing expense ratio cannot exceed ~1.85% per year (excluding the performance fee, which by nature depends on how well we do). This ~1.85% includes the 1.5% management fee plus typical fund expenses; we believe this is reasonable for a specialized, active strategy using AI, especially given our strong net returns after fees.

The minimum investment is €100,000 (or equivalent). This minimum reflects that the fund is aimed at professional and accredited investors rather than retail. We offer three currency share classes – EUR and USD – so you can invest in whichever currency is most convenient for you (the 100k minimum applies in the currency of the share class). All share classes have the same fee terms. The fund’s NAV is calculated daily, and investors can enter or exit the fund at those daily NAV prices (with no lock-up and no exit penalties). In summary: 1.5% management fee + 15% performance fee (above benchmark); ~1.85% total annual expenses; €100k minimum for professional investors; and daily liquidity with no entry/exit load.

Question:
The portfolio invests globally, so you’ll hold stocks in different currencies (USD, EUR, JPY, etc.). Do you hedge currency risks, or how do you manage currency exposure?

Answer:
We do not use explicit currency hedging at the portfolio level – our view is that currency movements are part of the return opportunity (and risk) in global investing, and they tend to even out through diversification. When we invest in a Japanese company, for example, we will typically hold that stock in yen and not hedge the yen back to another currency. This means the fund’s returns will include some impact from currency fluctuations of our holdings’ local currencies. However, because we hold a broad mix of currencies (from US dollars to euros, yen, etc.), no single currency dominates the portfolio’s risk. The inherent currency diversification provides a natural hedge to some extent – often, when one currency is down, another is up, smoothing the overall effect.

For our investors’ convenience, we do offer the fund in multiple currency share classes (EUR, USD). This allows you to subscribe and redeem in your preferred base currency, which can reduce the need for you to do separate currency conversions. Importantly, regardless of share class, all investors own the same underlying global portfolio. An EUR share class investor and a USD share class investor get identical portfolio exposure; the difference is just that we report NAV and accept flows in the chosen currency.

We do not fully hedge the share classes either – so an SGD share, for instance, will still reflect the unhedged performance of global stocks, just reported in SGD terms. If you have specific currency preferences or liabilities, you can choose the share class accordingly. Overall, we keep currency management straightforward: no active currency overlay, just diversification, and let the stocks (and their currencies) play out. This avoids adding another layer of complexity or cost, and historically currency effects have not detracted significantly from our strategy’s performance.

Question:
How is the fund structured for tax purposes? Will the fund’s gains or dividends be taxed before I get my returns?

Answer :
The fund is structured to be tax-efficient and “tax transparent” for investors. Being a Luxembourg UCITS, the fund itself does not pay local taxes on capital gains or dividend income it earns from its investments. In other words, any gains realized inside the fund and any dividends received from stocks are reinvested gross, without being taxed at the fund level. There is no withholding tax when the fund trades securities, and no corporation tax on the fund’s investment profits in the Luxembourg fund structure. This is beneficial because it means your returns aren’t being eroded by an extra layer of taxation inside the fund.

For the investor, the tax situation is essentially “pass-through” – you will be responsible for any taxes in your home jurisdiction on the returns you earn from the fund. Typically, investors might owe tax on capital gains when they redeem their fund shares for a profit, or on distributions if the fund pays out dividends (note: our fund currently reinvests profits, so it doesn’t make regular distributions). Final taxation depends on your own residency and tax laws. For example, a French investor might pay capital gains tax on profits when selling fund shares, whereas a Singapore investor (where there’s no capital gains tax) might not.

The fund itself won’t impose any tax; it will provide you the necessary reports (like annual statements of gains) so you can handle your local tax filing. Always consult your tax advisor, but the key point is that the fund is tax-neutral – it doesn’t add an extra tax layer. All returns flow through to you, and then your normal personal or institutional tax rules apply. This setup is common for international funds and ensures efficiency, especially for global investors coming from different tax regimes.

Question :
What kind of transparency and reporting can allocators expect? Will we know what the fund is doing and how it’s performing on an ongoing basis?

Answer :
We believe in high transparency and open communication with our investors. On the performance side, we publish a daily NAV for the fund, so you can track performance daily. We also provide monthly reports/factsheets that summarize performance, attribution (e.g. which sectors or themes contributed to returns), and any notable portfolio changes or outlook commentary. For instance, our factsheets and updates will discuss our current top themes and any shift in industry exposures. Additionally, our historical track record is fully audited and publicly available – we even have the strategy’s performance index (Bloomberg ticker: BCKT0632 Index) so that sophisticated investors can follow our strategy’s performance independently on Bloomberg. This level of transparency is somewhat unique; it reflects our confidence in the consistency of our process and results.

In terms of portfolio transparency, as an active manager we don’t disclose every holding in real-time to the general public (to protect our intellectual property and trading efficacy).

However, we do regularly share a lot of detail with our fund investors. Institutional allocators can receive look-through information on the portfolio – for example, we can provide the list of holdings or at least the top positions upon request, under NDA if needed. Our monthly reports typically show the sector and regional allocation, top contributors/detractors to performance, and sometimes example holdings to illustrate our themes. We are also very open to discussions: as an allocator, you can schedule calls with our team, and we’re happy to walk through the strategy’s recent moves or the reasoning behind our positioning.

Being a UCITS fund, we also produce comprehensive annual and semi-annual reports that include financial statements, portfolio listings, and auditor’s notes, which investors receive. Those reports undergo PwC audit and offer full transparency into the fund’s operations and holdings at the report dates.

In summary, you can expect full visibility on performance and portfolio strategy. We update investors frequently, and you’ll always know how the fund is doing and why. The combination of daily NAVs, monthly updates, published track record indices, and on-demand access to our team means allocators can gain a deep understanding of the fund’s behavior. We aim to cultivate trust through transparency – you’ll never be in the dark about what’s happening with the Global Equity Trends Fund.