What is trend-following? Trend systematically seeks to profit from momentum in asset prices. A long-established, institutional strategy with ~USD 340bn in global AUM, trend-following buys assets with rising prices and sells assets with falling prices, seeking to capture ongoing trends. Uses a diversified futures universe across all major asset classes: global equity, global bonds, commodities, and currencies. Volatility targeting adjusts position sizes to maintain controlled, consistent risk, while diversification across markets, time horizons and asset classes makes trend a resilient source of return.

How do we construct our trend portfolio? Our trend strategy is built to replicate the behavior of the SG Trend Index benchmark before fees, aiming to improve net results through fee disintermediation and efficient execution. We use a robust regression process to estimate the blend of futures positions that best tracks recent SG Trend returns, supplemented by a range of high-quality trend ETFs. Together, these exposures form a diversified virtual fund-of-funds trend strategy, where allocations are made at the group level to maximize how closely the full mix tracks the SG Trend Index. The result is stable trend-following beta that can be efficiently overlaid, with full implementation control and the potential for net outperformance.