Why We Are Different
SUNARES divides the investment world into two parts similar to the Chinese principles of yin and yang, with yin as the shaded side of the mountain representing the elements of earth and water (otherwise known as the female aspect) and yang as the sunny side of the mountain representing the elements of fire and air (also known as the male aspect).
SUNARES has been founded on the belief that the natural balance that normally exists between these four basic elements has become distorted and temporarily lost, with the yang sectors (industries associated with fire and air) dominating.
Since coming off the gold standard in 1971, the financial sector has seen an enormous expansion of the ‘fiat money’ system, essentially enabling money to be created out of thin air. This shift in monetary policy has resulted in an unprecedented overinvestment in financials and derivatives. This imbalance is entering a corrective phase, as evidenced by the implosion of the US sub-prime mortgage market and the ensuing credit crisis.
By emphasising only the yin (female) industries and sectors (such as energy, commodities, water,agriculture and food) and avoiding the yang (male) industries, such as the financial sector (as well as companies with financials as the main contributor to earnings) SUNARES seeks to avoid the turmoil in the financial and derivatives industry and aims to outperform over the long term.
Investors should also be aware of the following:
- No exposure to the financial sectors
- No derivative exposure
- No currency hedging
- No performance fee