1. The Growing Importance
of Momentum
| www.trendrating.com

2. ABOUT US
Trendratingprovidespricemomentumanalytics
tofundmanagershelpingthemtoachieve
increasedprofitsandtocontrolrisk.Basedoneight
yearsofbreakthroughresearch,ourmodel
systematicallycapturestrendsearlyandaccurately.
OurclientsuseTrendratingasacomplementto
theirexistingstrategiestodeliversuperiorresults.
Leadingassetmanagersaroundtheworldrelyon
ourmodelandsoftwareandTheLondonStock
ExchangehasselectedTrendratingasastrategic
partnerwithwhichtobuildanewfamilyof
momentumindices.

3. CURRENT STATE OF THE INVESTMENT FUND INDUSTRY
“It’s pretty
clear that
active
managers
haven’t
performed
above their
benchmarks”
CEO
AllianceBernstein
Assets are Shifting Away from Active Funds into Passive Funds
 72% of Mutual Funds underperform their benchmark (S&P SPIVA)
 $15Bn pulled from Hedge Funds in 2016 due to bad performance and high fees (Financial Times)
 Assets in actively managed funds may have to shrink by as much as 30 percent to restore
their ability to beat indexes (Bloomberg)
 U.S. DOL requirements will increase retirement account investments in low-fee investments
like index funds (Bloomberg)
Active Managers Can Fight This By:
 Eliminating human behavioral bias by relying on technology for improved market and risk
analysis
 Using a multi-factor approach (Value, Size, Quality, Momentum, Low Volatility) to
systematically capture alpha or smart beta
 Lowering operational costs by leveraging cloud-based alpha generation solutions

4. SUCESSFUL INVESTING INVOLVES CAPTURING TRENDS
“The inability
to spot trends
is why so
many who
rely solely on
fundamentals
have been
annihilated in
the past
decade”
PaulTudorJones
Too Many Active Managers Miss Key Trends
 Stocks prices are less and less connected to solid fundamentals as market structure and
technology changes have moved the focus to liquidity flow
 A stock with great fundamentals may take quarters to rise before its value is recognized
 Analysts adjust forecasts after big moves, restating the obvious
Trendrating Avoids These Pitfalls:
 By not needing to know “why” a stock is moving. Our complex model reacts to moves and
filters noise
 By not predicting the future and forecasting the unknown
 By knowing that forecasting trends is impossible, but following trends is possible and lucrative
 By relying on recent research and technology to open up a new frontier for active managers
to incorporate actionable momentum analytics easily and cost effectively

5. THE EFFECITIVENESS OF MOMENTUM IS VALIDATED BY YEARS
OF ACADEMIC RESEARCH & ADOPTION IS GROWING
“Stocks with low
returns over the
past year tend
to have low
returns for the
next few
months, & stocks
with high past
returns tend to
have high future
returns”
EugeneFama&
KennethFrench

6. MOMENTUM DELIVERS SUPERIOR RISK-ADJUSTED RETURNS
Dozens of
Academic
Studies Have
Concluded
that
Momentum
Produces
the Best
Risk-Adjusted
Returns
Source: Kenneth R. French data library
(DateRange:1963–2015)

7. WHEN DOES THE MOMENTUM FACTOR WORK BEST?
“Thecombination
of value &
momentumresults
ina significantly
higherSharperatio
thaneither
strategyaloneand
makesthe
portfolioless
volatile”
Blitz, Huij,
Lansdorp & Pim van
Vilet
Source: David Blitz, “Strategic Allocation to Premiums in the Equity Market”, Journal of Index Investing
(DateRange:1927–2012)
The Diversification Potential of Momentum in a Factor Portfolio is Significant

8. WAYS TO BENEFIT FROM MOMENTUM
Behavioral Benefits
 Eliminates the “Disposition Effect”
 Controls emotional bias
 Offsets ego-driven forecasting
“I see
momentum
analysis as a
continuing
process of trying
to uncover and
admit to your
inevitable
mistakes as a
money
manager.”
CEO
JAG Capital
Functional Benefits
 Idea validation & generation
 Portfolio risk control
 Tactical allocation
 Strategy optimization

9. TRENDRATING HAS THE MOST ACCURATE MOMENTUM MODEL
The Next Generation of Momentum Models
Self-Adjusts Monthly
Excellent Track Record
Quickly Identifies Trends
Measures Strength &
Duration of Trends
Filters Out False Moves
Effective in Most
Market Conditions

10. TRENDRATING SOLUTIONS
Web-based Momentum Analytics Platform

11. TRENDRATING SOLUTIONS
Data Feed Ways to Incorporate our Accurate Momentum
Ratings Data
 Create ETF Products that outperform benchmarks
 Include in research reports to broaden the scope
 Integrate into proprietary portfolio systems to
generate alerts and strengthen risk control
 Boost performance of bespoke quantitative models
 Enhance charting packages by displaying ratings
Trendrating Feed is a file delivery
solution utilizing FTP to deliver ratings
data that helps clients enhance their
proprietary analytics, financial portals,
decision support systems, and more.
Up to 15 years of historical ratings
data is available by region (The
Americas, EMEA, Asia Pacific).

12. TRENDRATING IS TRUSTED GLOBALLY
A Sampling of Our Clients Our Partners

13. CONTACT US
The longer you wait, the more opportunities you will miss. If there is a major trend
developing, Trendrating will find it!
LONDON
Phone: +44-203-705-2246
Email: info@trendrating.net
48 Warwick Street
London, W1B 5AW United Kingdom
BOSTON
Phone: +1-508-315-6313
Email: info@trendrating.net
275 Grove Street
Newton, MA 02466 USA
LUGANO
Phone: +41-91-91-06-590
Email: info@trendrating.net
Via Cantonale 19
Lugano, CH-6900