For the month of January 2020, the Enhanced Permanent Portfolio account returned net 0.07%

This time it was the corona virus that caused volatility in the market. The portfolio performance was achieved with desired low volatility. Whilst we are retaining our investment strategy, we are changing the way it is implemented. To date, the portfolio has paid approximately 1% negative interest per year, significantly reducing performance. The reason for this were the very high cash holdings in Euro, that bear negative interest. Since a return to positive interest rates is not expected in the near and medium term, we are changing the implementation strategy so that much less Euro cash remains in the portfolio. We have intensively tested the new implementation strategy (backtesting) and are confident that we will achieve the same portfolio stability as in the past.

Your Rational Invest Team
Walter Baumann / Frank Grossmann / Thomas Ritter
Tel +41 44 515 48 00 / Email