E.I. Sturdza Strategic Management Limited (EI Sturdza) would like to draw your attention to the Strategic US Momentum and Value Fund (The Fund) and its recent change of benchmark index. Effective since 1st January 2016, the Fund uses the MSCI Daily Total Return Net USA USD Index (Bloomberg ticker: NDDUUS Index) instead of the previously utilised S&P 500 index. The new benchmark is used for the calculation of performance related fees as well as to monitor the Fund’s performance. Accordingly, all future reporting for the Fund will be adjusted to reflect the new benchmark.
EI Sturdza’s decision stems from various considerations, of which two stand out:
- The MSCI US Index provides a more comparable performance benchmark to the actual operations of a Fund that does receive dividends, on a basis net of withholding tax;
- EI Sturdza maintains a relation with the MSCI to gain access to index constituent data. As a result by switching the Fund’s index from the S&P 500 Index to the MSCI US Index we are able to undertake greater analysis of the Fund’s relative positioning and performance, enhancing our service for our clients.
As highlighted in the chart below, the performance of the MSCI Daily Total Return Net USA USD is virtually identical to the previously utilised S&P 500 index which also demonstrates the new benchmark’s relevance as a proxy for the US market.
EI Sturdza remains at your disposal should you wish to receive any further information in this regard; otherwise we take this opportunity to thank you for your ongoing support.