Alpha Global Equity Value Fund

The information presented in this factsheet is for illustrative purposes only and does not constitute investment advice or an offer to buy or sell any financial instruments. Please note: This sample fund factsheet was generated using the InvePress plugin, a powerful tool designed to create live, print-friendly, and automated fund factsheets within a flexible WordPress workflow. The content shown is for demonstration purposes only and may not reflect current market conditions or comply with regulatory requirements.

Alpha is a measure indicating the potential and scale of price changes in a given instrument, assuming that the benchmark value remains unchanged. Alpha can take positive values, but also negative values. In the case of negative values, when the benchmark value does not change, the instrument under analysis generates a loss. An alpha equal to 0 means that only the benchmark influences the price change of the instrument.

Beta is a measure indicating the sensitivity of a given instrument’s price changes compared to benchmark changes. A beta of 1 means that an expected 10% increase in the benchmark value will translate into a 10% increase in the value of the instrument under analysis. The higher the value of the beta indicator, the riskier the investment being considered. In extreme cases, beta can take negative values, indicating an inverse movement of the unit’s value relative to benchmark changes.

Information Ratio is a measure of management efficiency constructed based on the relationship between the expected excess return and the standard deviation of the additional returns. The additional return is the difference between the investment return and the benchmark return, which describes the behavior of a homogeneous group of investments with a consistent investment policy. The expected excess return is the arithmetic mean of historical additional returns. To obtain comparable data, the IR ratio is presented in an annualized version by multiplying it by the square root of 4, 12, 52, 252 (depending on whether quarterly, monthly, weekly or daily data was used).

R-squared (R2), the square of the Pearson correlation coefficient, is a measure indicating the degree of fit of a data series to a pattern. In the case of investments, the periodic investment returns act as the data series, and the benchmark or market portfolio serves as the pattern. As a result, R-squared provides an answer to the question of how much of the investment’s return is explained by the behavior of the benchmark.

The Sharpe Ratio has a similar construction to the Information Ratio: the numerator represents the average excess return, a variable favorable for investors, while the denominator contains the unfavorable variable – the standard deviation of investment returns, which reflects total risk. What distinguishes the Sharpe Ratio from the Information Ratio is the calculation of the excess return and risk. In this case, the excess return is defined as the expected (average) return of the investment above the risk-free rate. The measure of risk used is the classical standard deviation of investment returns. With this construction, the Sharpe Ratio determines the magnitude of the excess return on risky assets per unit of total portfolio risk. The higher the value of the ratio, the greater the efficiency of the investment under analysis. A negative value indicates that the investment has shown an average result below the risk-free market rate during a given period.

Standard Deviation shows the degree of dispersion of results in relation to the average values. The higher the standard Deviation, the higher the risk associated with the investment.

The Tracking Error indicator allows for an assessment of the consistency of the investment policy’s performance with the results achieved by the benchmark. The smaller the value of the Tracking Error indicator, the smaller any potential differences that may arise. The indicator is based on the standard deviation of additional returns. The additional return is the difference between the investment return and the benchmark return, which describes the behavior of a homogeneous group of investments with a consistent investment policy. The expected excess return is the arithmetic mean of historical additional returns. To obtain comparable data, the Tracking Error indicator is presented in an annualized version by multiplying it by the square root of 4, 12, 52, 252 (depending on whether quarterly, monthly, weekly or daily data was used).