Did VIG Asset Management outperform the World Cup odds?
Earlier this January, we published our hypothetical equity index based on FIFA World Cup winning probabilities: the VIG Football World Cup Equity Portfolio Index.
Its performance has been particularly strong, theoretically outperforming both the European EURO STOXX 50 Index and the U.S. S&P 500 Index.
However, in June, VIG Asset Management did not want to miss out on the World Cup action either. We therefore “fielded” all of our investment funds as if they were players on a football team. The funds were assigned to positions based on their investment strategies and historical performance. The result was a hypothetical portfolio composed of attacking, defensive, and balanced strategies: the VIG Starting LineUp Equal Weight Portfolio.
The VIG Starting LineUp takes the lead in the second half
VIG Starting LineUp Equal Weight Portfolio and VIG Football World Cup Equity Portfolio Index Year-To-Date Performance (EUR)
Source: VIG Asset Management
The chart speaks for itself: the VIG Starting LineUp Equal Weight Portfolio would have been able to outperform the World Cup odds-based index. Until mid-April, the two portfolios moved virtually neck and neck, but from that point onward the VIG Starting LineUp portfolio pulled ahead and has maintained its lead ever since.
To ensure comparability, we used the same methodology to calculate the hypothetical returns of both the index and the VIG Starting LineUp portfolio. The returns of the equity indices underlying the VIG Football World Cup Index were converted into euros using simple currency conversion, and therefore the returns of the main share classes of the investment funds were also expressed in euros using the same approach.
It is important to note, however, that despite this methodology, the portfolio and the index carry different currency risks.
Just as in football, choosing the right strategy is essential in investing. In the VIG Starting LineUp Equal Weight Portfolio, all players are represented with equal weights. Yet a skilled investor, much like a great coach, knows when to take on more risk – and when it is time to scale it back.
One of the key requirements of good coaching is knowing your players inside and out: understanding the role in which they perform best, when they can be relied upon, and in which situations they contribute most effectively to the team’s success. The same principle applies to investing. When building a portfolio, it is not enough to simply select funds; it is equally important to understand the character each fund brings. Some funds play a more aggressive, growth-oriented role, others serve as defensive, stabilizing elements, while some help maintain balance between the two.
Get to know VIG Asset Management’s “football players”
Once you have become familiar with the players, every coach can assemble their own investment team. The formation may differ from one investor to another: some may prefer to field more attackers in pursuit of higher return potential, while others may opt for a stronger defense and a more cautious strategy. A third investor may seek a balanced team capable of delivering stable performance across multiple market environments.
The principle is the same as in football: achieving good results requires more than just a few star players – the roles and tactics must also work together effectively.
Those who would like to test their coaching skills and invest their savings through a Long-Term Investment Account (TBSZ) can also participate in VIG Asset Management’s prize draw. Participants can win official World Cup match balls as well as trips to Vienna.
More details about the prize draw are available here.
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The portfolio presented and the related analyses are provided for informational purposes only and do not constitute investment advice, an offer, or a recommendation, nor do they form the basis for any investment decision. The performance presented is based on hypothetical calculations, is for informational purposes only, and does not reflect the past or future returns of any existing investment product.
The construction of the portfolio and the determination of probabilities involve the use of statistical.
Jogi nyilatkozat: A blog üzemeltetője a VIG Befektetési Alapkezelő Magyarország Zrt., a szerzői az Alapkezelő munkavállalói. A weboldal kereskedelmi kommunikációt tartalmaz. A blogon megjelenő cikkek magánszemélyek szubjektív véleményét tükrözik, tájékoztatási céllal készülnek és nem minősülnek befektetési elemzésnek vagy befektetési tanácsadásnak és nem tartalmaznak befektetési ajánlást. A blog szerzői saját nevükben kereskedhetnek olyan pénzügyi és pénzeszközzel vagy más termékkel, amelyről az általuk készített cikk közöl tájékoztatást vagy véleményt. Bár a szerzők tőzsdei vagy tőzsdén kívüli kereskedés során szerzett tapasztalata a jelen blogon szereplő írásaikban is megjelenhet, de érdekeltség nem befolyásolhatja az általuk közölt tájékoztatást. A blogon megjelenő cikkekben, hírekben és tájékoztatásokban megjelenhetnek olyan társaságok, amelyek üzleti kapcsolatot tartanak fenn a VIG Befektetési Alapkezelő Magyarország Zrt.-vel vagy a blog szerzőivel akár közvetlenül, akár a VIG Group cégcsoportba tartozó más vállalkozáson keresztül. Jelen blogon megjelent cikkek nem tartalmaznak teljes körű tájékoztatást, és nem helyettesítik a befektetés megfelelőségének vizsgálatát, amelyet csak az adott befektető egyedi körülményeinek értékelésével lehet megállapítani. A megalapozott befektetési döntés meghozatalához kérjük, hogy részletesen és több forrásból tájékozódjon!
A VIG Befektetési Alapkezelő Magyarország Zrt., a blog szerkesztői és szerzői nem vállalnak felelősséget a blogon szereplő tartalom naprakészségéért, esetleges hiányosságaiért vagy pontatlanságaiért, valamint a blogcikkek alapján hozott befektetési döntésekért és a befektetési döntésekből származó bármilyen közvetlen vagy közvetett kárért vagy költségért.