Forward Lucy - Stage Image
Forward Lucy: The first investment fund of its kind
Get in touch with Lucy
Get in touch with Lucy
Searching for a smarter equity fund with fairer pricing? Meet Lucy.

Introducing an ambitious investment fund that combines a unique systematic investment strategy with a new approach to client relationships.

Our new investment approach entails a combination of machine learning, factor rotation and a call option overlay – each element adding to performance potential. At the same time, to put the focus firmly on investors, we introduce a performance-based pricing model, whereby we only want to be successful when our investors are succeeding too. Moreover, there are no more ‘black boxes’; the holdings/allocations are entirely open. Investors know what they are getting.

In other words, we want to push the boundaries in stock selection, whilst firmly aligning our interests with our investors. Welcome Lucy!

Lucy's different.

As with all FWU products, Forward Lucy’s investment approach is driven by state-of-the-art algorithms that harness the power of data.

But a few things set Lucy further apart:

1. Cluster analysis

Lucy uses cluster analysis, which is a new, more exact way of dividing up the stock market universe.

2. Factor rotation

Lucy performs smarter stock selection using a factor rotation strategy, whereby the momentum phenomenon is used to pivot towards the right trending stocks.

3. Call option overlay

Lucy enhances performance through a call option overlay, whereby call options are sold in a systematic fashion.

Cumulative performance - Image Block

It’s the combination of cluster analysis, factor rotation and call option overlay that powers Forward Lucy’s investment engine. We call the process ‘alpha layering’ and the graph above shows how it can enhance overall performance.

Want to know more? You can either contact Lucy directly via the tab to your right, or just keep on scrolling down!


An innovative way of segmenting stocks

Segmenting is a perfectly logical way of categorizing stocks. But, using the traditional sector method, companies that don’t belong together are often placed in the same basket. For example, Amazon and McDonald’s – totally different kinds of company – are both classified as Consumer Discretionary stock. Lucy thinks there’s a better way, and this is why, for Forward Lucy, we use clusters to produce more exact groups.

How we create clusters - New Image Block - graph2 1

Dynamic stock selection with factor rotation

We use factor analysis to identify unique characteristics of stocks that have shown to generate outperformance. But while this is a time-tested way to add value to a portfolio, we can enhance the process by incorporating a momentum strategy to identify the trending factors. We rotate factors at the right time, thereby generating extra performance

Getting momentum on our side - graph3 3

Further enhancing performance with a call option overlay

Clusters and factors form the backbone of Forward Lucy, but her process also comes with a call option overlay. This means we systematically sell call options on stocks that we currently own, on a monthly basis.

This strategy has a number of benefits. Firstly the yield is enhanced, because as well as getting dividends on the stocks we hold, we also get premiums from the option contracts we sell. Collecting premiums also limits the downside of falling stocks. For example, if stock we own falls by 10% and we have collected a 2% premium, then we are then only 8% worse off instead of 10%.

Average annual option attribution - Image Block - graph4 2
01
Softens effects of downturns

During severe downturns, the premiums from the options mean we can limit losses.

02
Limits effect of extreme upturns

In sudden upward trends the strategy does limit some of the upside as prices move beyond the options’ strike prices. 

03
Strong in sideways markets

But in most scenarios, the strategy adds to returns, especially in sideways or gradual upward markets.

Forging new client relationship with Lucy.

Forward Lucy’s performance is powered by her unique investment approach, but that’s only part of the story. She also offers a new way of building relationships with investors, revolving around these three pillars:

1. Performance-based pricing

Lucy uses a variable pricing model, whereby the emphasis moves away from fixed pricing and firmly towards performance. Lucy succeeds when investors succeed.

2. Full transparency

No more black boxes. With Lucy, investors get full insight into the fund’s holdings, including all single positions and overall allocations.

3. Proactive communication

In connection with ‘no more black boxes’, Lucy is a strong communicator and is highly visible. Investors are constantly updated, and no question is left unanswered.

Like the sound of all this? You can learn more by contacting Lucy directly via the tabs to your right, otherwise the only way is down (scrolling, that is).



A better deal for investors with performance-based pricing

Lucy thinks the interests of investors and fund managers should be more aligned, that’s why Forward Lucy introduces more variable pricing. So instead of fixed pricing arrangements, which can lead to asset managers taking a high percentage irrespective of fund performance, Lucy lowers the fixed percentage and introduces a large performance-based element. She does this for all investors irrespective of size.

Here’s how it works:

Fees - Image graph5 0

Greater insight for investors with full transparency

Lucy’s got nothing to hide, so Forward Lucy features an open-access website, where investors can see an overview of all stocks in the portfolio, as well as daily-updated positioning on all the major equity regions. This emphasis on transparency is driven by a desire to move away from the ‘black box’ way of thinking about asset management, and to be entirely open with our investors.

Interactive factsheets - Image element6 1

Raising standards with proactive communication

As anyone who knows Lucy will tell you, she loves to talk! And we made her that way for a reason: communication is key to our relationship approach. Investors are kept updated with market trends and actually get to see what our models are indicating.


Lucy's always there, always visible and able to ensure no question is left unanswered.

FWU Invest Market Update - Image - element7 0

Forward Lucy is different, the first of its kind. This uniqueness has two elements: the investment approach and a novel approach to the client relationship.

The investment approach is systematic, whereby we capture the best machines can give us by adapting techniques and methods garnered from statistics and computer science. In addition to a pioneering investment engine, we are building a new form of partnership with our investors. Central to this is a new pricing set-up, which introduces a larger variable element, thereby better aligning our interests and those of investors. Part of this drive to move closer to the investor is also our decision to provide full transparency, whereby all our positioning will be visible and any developments will be proactively communicated.

Forward Lucy, then, sets a new benchmark in investment management by taking the full range of investor needs into consideration.

We want to push the boundaries and invite you to join us on this journey.

Like the sound of all this?
Get in touch with Lucy
FWU Logo
Ready to build your nest egg? We'll connect you with an advisor in your area
1 2
Next