The DMC Fund

DMC FUND is an investment Fund registered in Luxembourg since 1998* . In addition to a strong performance record, DMC FUND offers private and institutional investors,
*From 1998 to 2006, DYNAMIC FLOORING FUND

European passport

DYNAMIC ASSET MANAGEMENT COMPANY (Luxembourg) SA*, founded in 1998, is the DMC FUND Management Company. It is governed by Chapter 13 of the Investment Fund Act of December 2002 and has been part of the European passport system since 2004. Under this system, it is free to locate its business and provide services in any of the Member States of the European Union. It received UCITS III approval from the Luxembourg Commission de Surveillance du Secteur Financier (CSSF) in 2006, www.cssf.lu.
* From 1998 to 2006, DYNAMIC FLOORING FUND COMPANY (Luxembourg) SA.

Distribution in Switzerland

The Luxembourg domiciled DMC FUND has been approved by FINMA (Swiss Financial Markets Supervisory Authority) for distribution in Switzerland as a foreign collective investment scheme that fulfills the conditions of the EC Directive 85/611/CEE, as amended by the two Directives 2001/107/CE and 2001/108/CE (UCITS III Directive). The Fund's representative in Switzerland is Dynagest SA, Geneva, www.dynagest.ch.

Acknowledged expertise in dynamic risk management

DYNAMIC ASSET MANAGEMENT COMPANY (Luxembourg) SA is a wholly owned subsidiary of Dynagest SA, www.dynagest.ch, Geneva, a registered securities dealer. Dynagest is the DMC FUND Manager and is licensed by the Swiss financial regulator, FINMA.
Since its founding in 1993, the Company has focused its approach on the systematic control of risk. Adopting balanced global management processes, it applies a range of quantitative management techniques to meet the specific needs of its institutional clients. Dynagest is an acknowledged competence centre for interest rate management and portfolio insurance, both within Switzerland and in the international arena. It extended its expertise in 2008 to include active equity management.
Its extensive experience in the institutional sector is underpinned by a team of some twenty highly qualified professionals from specialised backgrounds (CFPI, CFA).
Dynagest has been the representative and distributor of DMC Fund in Switzerland since 2002.

Key features of DMC FUND

  • strong historical performance
  • the flexibility of an umbrella fund structure to optimise differentiated risk-return profiles
  • the security, transparency and accessibility associated with a recognised European domiciles fund
  • ability, over time, to match clients' objectives with expected performance
  • flexible, innovative families of subfunds tailored to clients' needs
  • underlying liquid assets offering daily or weekly liquidity (depending on the family)
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Dynamic Asset Management Company (Luxembourg) SA

DYNAMIC ASSET MANAGEMENT COMPANY (Luxembourg) SA*, founded in 1998, is the DMC FUND Management Company. It is a wholly owned subsidiary of Dynagest SA,www.dynagest.ch, Geneva, registered securities dealer, licensed by the Swiss financial regulator, FINMA, www.finma.ch.
*From 1998 to 2006, DYNAMIC FLOORING FUND COMPANY (Luxembourg) SA.

Quality partnership designed for optimal management of the DMC FUND

Investment manager

Dynagest, founded in 1993, www.dynagest.ch, is an independent financial company based in Geneva. Its management approach is focused on the systematic control of risk. A specialist in quantitative management strategies tailored to an institutional clientele, the Company is an acknowledged competence centre for interest rate management and portfolio insurance, both within Switzerland and in the international arena. Dynagest extended its expertise in 2008 to include active equity management.

Investment advisor of DYNAPARTNERS family

Dynapartners,www.dynapartners.com, is an independent investment group specialising in identification of global macro themes and asset allocation. It has a team of seasoned professionals whose wide-ranging skills cover all the key sectors of the financial markets.

Custodian bank

The Banque et Caisse d'Epargne de l'Etat (BCEE), www.bcee.lu, founded over 150 years ago, enjoys an international reputation. One of the foremost Luxembourg banks offering global banking services, it has extensive experience in the investment fund sector. Its excellent financial standing and that of its sole shareholder, the Luxembourg government, have earned it the highest ratings granted to the Luxembourg financial centre - AA+/ A-1 by Standard & Poor's and Aaa/P-1 by Moody's.

Delegated transfer agent and registrar

European Fund Administration SA (EFA), www.efa.eu, is a public limited company under Luxembourg law, founded in October 1996. A fund administration specialist, EFA administers 2,589 funds on behalf of 236 clients. Its client portfolio includes several banks, investment management companies, hedge fund managers, insurance companies and pension funds.

Auditor

With close to fifty years' experience, BDO-Compagnie Financière, www.bdo-cf.lu, is a leading service provider in the Grand Duchy of Luxembourg in areas such as accounting and tax expertise, auditing, financial engineering and, particularly, investment funds and pensions funds.

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Management Methods

The DMC FUND is an umbrella fund and as such it offers investors a choice of management methods. This flexibility allows the fund to focus on the best investment decisions, taking into account the expected performance. DMC FUND offers different risk management approaches over the long term:

Each family consists of one or more subfunds which have several classes of units.

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Ratchet management

The key objective of ratchet management techniques is to take advantage of the upside potential of a risky asset while limiting the downside risk.

Key features of ratchet management

  • systematically manages exposure to rises and falls in the market
  • provides a range of approaches to protect the initial investment capital and accumulated gains to varying degrees
  • takes advantage of any rise in the underlying assets depending on the initial exposure
  • protects progressively accumulated gains so as to sustain only limited losses should the market decline
  • contributes to long-term portfolio growth thanks to the systematic character of the management strategy.

Underlying principles of ratchet management

Financial principle

Constant Proportion Portfolio Insurance (CPPI), is a systematic way of managing exposure that protects a given investment floor.

Mechanical principle

The ratchet, which introduces gradual protection of accumulated profits when the market rises.

Unrivalled experience

Dynagest, www.dynagest.ch, is a leading Swiss contributor to the development and application of the ratchet management technique. It has over fifteen years' experience in this management approach, and has worked closely with its customer-partners to explore the potential of the method. Its major efforts in perfecting and broadening the scope of this technique and its application have made Dynagest a leading expert in the field.

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Active equity management

The active equity management approach uses quantitative models to build portfolios, in conjunction with fundamental research on investment themes. The key objective is to generate relative outperformance or alpha in a pre-defined and controlled risk environment.

Key features of active equity management

  • thematic portfolio management based on fundamental research
  • flexibility to use a range of equity-related securities
    • individual securities
    • investment funds (open- and close-end)
    • index linked products (ETF, index derivatives)
  • neutralisation of specific risk through broad diversification
  • systematic portfolio built on a quantitative model
  • strict control of pre-defined active risk budget.

Total return management

The total return management style applied in the DYNAPARTNERS family aims to deliver a performance over a full business cycle. To achieve its objective it applies dynamic asset allocation with diversification across all asset classes, without geographic or thematic constraints. The strategy allows the manager to take full advantage of capital market opportunities. Risk analysis and risk management are key factors in achieving the performance objectives.

Key features of total return management style applied in the DYNAPARTNERS family

  • rigorous selection of financial instruments
  • challenges conventional views
  • active investment approach
  • flexible use of hedging techniques to stabilise the performance profile of the strategy.

Investment Advisor of DYNAPARTNERS (Lux) GLOBAL STRATEGY FUND

Dynapartners is an independent management company specialising in identification of global macro themes and asset allocation. It has a team of seasoned professionals whose wide-ranging skills cover all the key sectors of the financial markets.
For further information: www.dynapartners.com

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DYNAMIC FLOORING Family

The DYNAMIC FLOORING family offers exposure to the main markets for top quality long-term bonds. To achieve the dual objective of performance and security, they apply a ratchet management technique. This quantitative portfolio insurance technique offers effective capital protection and long-term capital growth.

The DYNAMIC FLOORING family of subfunds offers two risk limitation strategies:

  • the "DF" subfunds' main objective is to protect a dynamic investment floor that is only adjustable upwards.
  • the "MAS" subfunds aim to maintain a minimum level of exposure to underlying risky assets. In this strategy, the floor - an upwardly adjustable dynamic reference floor - can be lowered to allow greater exposure when required.

Facilitated conversion between DYNAMIC FLOORING subfunds takes account of the changing levels of security required by the investor. It allows clients to switch between subfunds at any time without being penalised by new up-front fees.

"DF" subfunds

"DF" subfunds offer access to the world's main bond markets. Their objective is to generate long-term capital growth while protecting the value of the underlying risky assets.

Through this management technique, the subfunds aim to generate long-term annual returns that outperform their benchmarks (Citigroup European WGBI and Citigroup U.S. Government Bond Index).

"MAS" subfunds

"MAS" subfunds provide access to the world's main bond markets. Unlike “DF” subfunds, their primary objective is not to protect a floor that is exclusively adjustable upwards. "MAS" subfunds aim to better preserve the possibility to participate in the potential growth of the risky underlying assets. This is achieved by maintaining a minimum level of exposure to the underlying risky assets (top quality long-term bonds) and the possibility of lowering the floor (a reference floor) by a pre-defined annual percentage.

“MAS” subfunds aim to generate long-term annual returns that outperform their benchmarks (Citigroup EGBI and Citigroup U.S. Government Bond).

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RELATIVE STRENGTH Family

The RELATIVE STRENGTH family of subfunds provides access to the best opportunities in global equity markets, through a diversified portfolio and an innovative management approach.

The active equity management approach uses quantitative models to build portfolios, in conjunction with fundamental research on investment themes. The advantage of this approach is its ability to generate relative outperformance or "alpha" in a pre-defined and controlled risk environment.

The Investment Process

The investment process is driven by fundamental research, aimed at identifying favourable themes in the equity markets, based on concepts such as business sectors, geographic areas, market capitalisation, and investment styles.

This is followed by a disciplined selection of investment instruments that offer optimal exposure to the chosen themes. These instruments can include investment funds, ETFs, equity index futures or the construction of customised securities baskets.

A systematic estimate of potential return is then undertaken for each theme, using a combination of measures such as price momentum, valuation and earnings momentum.

Dynamic GARCH models (Generalised Autoregressive Conditional Heteroscedasticity) are used to construct portfolios and assess risk. These models allow dynamic assessment of the volatility and correlation of the selected instruments.

The final stage of portfolio optimisation aims to maximise the expected excess return relative to the benchmark by applying a maximum relative risk constraint as measured by the tracking error.

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DYNAPARTNERS Family

The total return management style used in the DYNAPARTNERS family of subfunds aims to deliver positive performance over a full business cycle. To achieve this objective, it applies dynamic asset allocation and risk diversification principles across all asset classes, without geographic or thematic constraints. The strategy aims take full advantage of capital market opportunities.

Key features of the "total return" management style

  • rigorous selection of financial instruments
  • challenges conventional views
  • active investment approach
  • flexible hedging techniques used to stabilise the strategy's performance profile.

The Investment process

A disciplined investment process :

  • generation of ideas by Dynapartners think tank, incorporating external specialists
  • daily asset allocation screening by Dynapartners investment committee
  • selection of financial instruments by ad hoc committee
  • strategy validation and implementation by Dynagest.

Risk management is at the heart of the investment process and is an integral part of the daily portfolio review. The objective is to ensure a sufficient return on investment to offset the risks incurred, in particular by limiting the downside potential in keeping with the absolute return approach. Investment risks and opportunities are reviewed continually to ensure that the risk/return profile and complementarity of each underlying instrument are in line with the strategy objective.

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Your contacts

For more information, please contact us.

DYNAMIC ASSET MANAGEMENT COMPANY (Luxembourg) SA
15, rue du Fort Bourbon
L-1249 Luxembourg
Phone: +352 264 80 264
Fax: +352 264 80 265
mail@dmc.lu

Dynagest SA
12, quai de la Poste
CH - 1211 Geneva 11
Phone: +41 22 593 55 55
Fax: +41 22 593 55 50
mail@dynagest.ch
www.dynagest.ch

Administrative Enquiries

Christian Wolf

Christian Wolf is Managing Director of DYNAMIC ASSET MANAGEMENT COMPANY (Luxembourg) SA. He is also part-time risk manager and co-head of client accounts and collective investments at Dynagest.

Prior to joining Dynagest, he was a member of the Quality Management Group at Deutsche Bank (Suisse) SA and risk manager at Banque Lombard Odier Darier Hentsch & Cie, Geneva. He holds a Master’s degree in economics, specialising in economics and business management, from the Université Pierre Mendès France, Grenoble.
Phone +352 264 80 264, e-mail cwolf@dmc.lu

DYNAMIC FLOORING Family

Alexandre Kuhn

Alexandre Kuhn is Co-managing Director of DYNAMIC ASSET MANAGEMENT COMPANY (Luxembourg) SA and Manager of the DYNAMIC FLOORING family of subfunds. He is a manager and founding member of Dynagest and sits on the Board of Directors.

Before Dynagest, Alexandre Kuhn was an assistant manager with the Australia and New Zealand Banking Group in Geneva. He was responsible for asset management for clients from the Middle East and India, and was also a member of the investment policy committee and head of fixed income investment strategy. He holds a degree in political science from Geneva University, Switzerland, and studied at the Institut des hautes études internationales (HEI) in Geneva.
Phone +41 22 593 55 55, e-mail alex.kuhn@dynagest.ch

René Sieber

René Sieber is Co-managing Director of DYNAMIC ASSET MANAGEMENT COMPANY (Luxembourg) SA and Manager of the DYNAMIC FLOORING family of subfunds. He is a founding member of Dynagest and sits on the Board of Directors.

Before Dynagest, René Sieber worked for Banque Unigestion in Geneva, where he was responsible for macroeconomic analysis and fixed income investment strategy. He also headed the Institutional Accounts Department. He is a lecturer in finance at Geneva University, where he co-directs a continuing education programme in quantitative portfolio management. René Sieber holds a doctorate in economics from Geneva University, and was a Visiting Scholar at the Massachusetts Institute of Technology (MIT), Cambridge, USA.
Phone +41 22 593 55 55, e-mail rene.sieber@dynagest.ch

RELATIVE STRENGTH and DYNAPARTNERS Families

Franck Janura

Franck Janura is Manager of the RELATIVE STRENGTH and DYNAPARTNERS families of subfunds. He is an assistant manager at Dynagest, jointly responsible for the development of active quantitative strategies and selecting fund managers.

He previously worked for Banque Safdié in Geneva, where he was responsible for alternative investments. As a member of the Investment Committee, he defined the Bank’s macroeconomic strategy. Franck Janura holds a Master’s degree in economics and econometrics from the University of Sorbonne, Paris I and the Ecole Normale Supérieure, Ulm. He also holds a DEA in finance from Sorbonne University, Paris I, and a Specialised Master in Finance from the École Supérieure de Commerce de Paris (ESCP).
Phone +41 22 593 55 14, e-mail franck.janura@dynagest.ch

Grégory Lenoir

Grégory Lenoir is Manager of the RELATIVE STRENGTH and DYNAPARTNERS families of subfunds. He is an assistant manager at Dynagest, jointly responsible for the developing active quantitative strategies and selecting fund managers.

Before joining Dynagest he sat on the Board of Directors of Banque Safdié, Geneva, where he was also a member of the investment committee, responsible for the Group's equity strategy and equity products. Gregory Lenoir holds of Master’s degree in finance from the Haute Ecole de Commerce (HEC), Paris, and an M.Sc. in theoretical physics from the Federal Institute of Technology in Lausanne (EPFL).
Phone +41 22 593 55 19, e-mail gregory.lenoir@dynagest.ch

Subscriptions and Redemptions Information

European Fund Administration SA (EFA)
B.P. 1725
2, rue d'Alsace
L-1017 Luxembourg
Phone: +352 48 48 80 80
Fax: +352 48 65 61 89 00
Swift : EFALLULL

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