23.03.2011

Sebastien LegoffSebastien Legoff
Portfolio Manager
Delubac Asset Management

 

Not all investments cater to the needs of the inexperienced investor as well as those with years of experience in capital markets.

But the WIOF Global Strategy Alpha Portfolio does just that. It is tailor-made for investors who do not follow capital market themes, but at the same time is a perfect fit for more experienced investors looking to reach defined investment objectives and add diversity to their portfolio.

 

OVERVIEW

The WIOF Global Strategy Alpha Portfolio invests in global equity and bond markets, aiming to create long-term capital growth in SGD. It has a maximum 70% equity exposure.

Focusing on the creation of long-term capital growth, it is an ideal choice for investors looking to build wealth over a longer period of time.

INVESTOR BENEFITS

Among the Fund’s key advantages are:

 

  • An active multi-asset strategy with lower volatility
  • Emphasis on long term investing and capital growth in SGD
  • Transparent, single portfolio of open-ended collective investment schemes
  • Flexibility at portfolio construction level with emphasis on traditional asset classes
  • On-going investment process combining top-down and bottom-up views with quantitative and qualitative practices
  • Experienced management team with excellent track record

STRATEGIC IMPORTANCE

Beyond the benefits outlined above, a fundamental element of the Fund’s successful performance is its investment manager’s strategy. The manager’s current strategy takes into account a broad range of factors, all of them carefully monitored and considered so that the Fund can perform to its maximum.

Among these is that emerging markets are likely to underperform developed markets until inflation (either realised or expected) peaks. Attempts to tighten monetary policy to control inflation in certain emerging market economies could lead to a hard landing with the potential to destabilise markets. In this context, diversification of the Fund’s equity exposure could be increased whilst maintaining total equity exposure under 25%.

In addition, SGD-hedged strategies are favoured in the Fund’s portfolio because of issues with SGD/USD parity. As the Monetary Authority of Singapore (MAS) manages the currency to control inflation and because MAS, unlike its regional counterparts which can tighten monetary policy through currency exchange and interest rates, has only one option to control inflation i.e. allow a firmer currency, SGD/USD parity is expected to strengthen further in the next six to 12 months.

Meanwhile, the Fund’s absolute return strategies provide a diversified return stream to the broader portfolio. The portfolio’s exposure to absolute return strategies currently consists of two funds: One is managed with a global macro approach using traditional investment instruments such as ETFs while the other uses multiple concurrent bond strategies (including duration management, yield curve or maturity structuring, sector rotation and all bottom-up techniques).

Structure of Securities

 

GLOBAL EFFORTS PAYING OFF

Crucial to the Fund are, of course, the conditions and performance of world markets. The global outlook is currently positive as substantial efforts provided by authorities in major global economies (China, USA, Europe, etc.), notably through an extraordinarily accommodative rates policy to support economies, are finally paying off. Business and consumer confidence is peaking. Growth figures are high and expected to remain at such levels for a couple of quarters. Nonetheless, major risks remain. While oil prices may drop back later in the year as Middle East concerns fade, uncertainty remains great and events could still take another turn for the worse.

 

MANAGEMENT EXPERTISE

Delubac Asset Management

Investors into the WIOF Global Strategy Alpha Portfolio benefit from having their investments managed by one of the market’s top investment managers - Delubac Asset Management, part of Delubac Bank. Delubac, which specialises in fund picking, stock picking and asset allocation, has created an important niche for itself with its expertise in emerging markets funds of funds. Delubac also follows a unique investment philosophy of focusing on strategic investment themes, actively monitoring risk, diversification and long holding periods.

 

 

IMPORTANT NOTE: This report has been prepared for information only, and it does not represent an offer to purchase or subscribe to shares. World Investment Opportunities Funds (“WIOF”) is registered on the official list of collective investment undertakings pursuant to part I of the Luxembourg law of 20th December 2002 on collective investment undertakings as an open-ended investment company. WIOF believes that the information is correct at the date of production while obtained from carefully selected sources considered to be reliable. No warranty or representation is given to this effect and no liability can be assumed for the correctness or accuracy of the given information which may be subject to change at any time, without notice. Past performance provides neither a guarantee, nor an indication of future performance. Value of the shares and return they generate can fall as well as rise. Currency fluctuations, either up or down, may also affect value of the investment.Due to continuing market volatility and exchange rate fluctuations, the performance may be subject to significant changes over a short-term period. Investors should be aware that shares in the financial instruments entail investment risks, including the possible loss of the invested capital. Performance is usually calculated on the basis of the relevant NAV unless stated otherwise. Performance shown does not take account of any fees and costs associated with subscribing or redeeming shares. It is assumed that all dividends were reinvested. WIOF prospectus is available and may be obtained through www.1cornhill.com. Before investing in any WIOF Sub-fund(s) investors should contact their financial adviser / legal adviser / tax adviser and refer to all relevant documents relating to the WIOF and its particular Sub-fund(s), such as the latest annual report and prospectus that specify the particular risks associated with the Sub-fund, together with any specific restrictions applying, and the basis of dealing. In the event investors choose not to seek advice from a financial adviser / legal adviser / tax adviser, they should consider whether the WIOF is a suitable investment for them.