23.01.2012

Sebastien 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.

The Fund – which has been awarded four stars by the international fund ratings agency Morningstar recognizing its outstanding long-term performance - 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, with long-term capital growth in USD being the objective. The Fund’s objective had until recently been long-term capital growth in SGD, but this is in the process of being changed to USD and should be completed soon. The Sub-Fund may invest up to a maximum of 90% of its net assets in equities and equity related securities. The Sub-Fund may also invest in warrants. The Sub-Fund may also invest substantially into other UCITS or UCIs. Notwithstanding the provisions of Article 12.1 of Appendix I, the Sub-Fund may invest more than 10% of its assets into such other UCITS or UCIs, provided that the limitation in Article 12.2 of Appendix I shall always be complied with.

INVESTOR BENEFITS

The Fund gives investors a number of benefits and combines both low volatility and flexibility. Among the Fund’s key advantages are:

  • An active multi-asset strategy with lower volatility
  • Emphasis on long term investing and capital growth in USD
  • 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

 

INVESTMENT PROCESS

The Fund manager’s investment process involves comprehensive fund-picking and asset allocation mechanisms. Initially tracking tens of thousands of funds, a screening process allows the fund manager to make a selection of 100 superior funds which are then examined using quantitative and qualitative analyses followed by further evaluation for return perspectives and diversification contributions before fund picks are made. This is combined with an asset allocation process which uses a top-down, bottom-up approach including evaluation for strategic and tactical allocation to short-list funds. The final constructed portfolio is monitored daily.

DIFFICULT YEAR

The Fund’s active management and daily monitoring mean that the investment manager can react quickly to conditions on world markets which, of course, are crucial to the Fund’s performance. The past year, especially its latter half, was a troubled one for markets. Continuing weakness in global growth, sovereign debt concerns in the US and Europe and worries over emerging market and particularly Asian, economic prospects in the face of a possible recession in developed economies burdened investor sentiment around the globe. The Eurozone crisis, and the seeming inability of politicians to deal with the continent’s debt problems, was particularly damaging, dragging down markets across the Atlantic and sparking a series of massive sell-offs and severe volatility. Looking ahead, the early part of 2012 is likely to remain challenging. The risk of many European countries slipping into recession remains ever present and without a clear solution to the Eurozone crisis that markets will accept, uncertainty and volatility are likely to be the dominant characteristics for most markets. Asian markets have not been immune to global economic problems and macro uncertainties remain while liquidity conditions in some countries are tight.

 

ENCOURAGING OUTLOOK

However, there is some encouragement. Economic data from the US has been steadily positive, suggesting the economy is recovering, while there are hopes that monetary conditions in Asia may begin to ease and that markets will rise again. Volatility is not expected to be as strong as in 2011 and even a serious downturn in Europe which would affect Asian economies could give Asia the chance to outperform. Sentiment towards emerging markets is positive and, while they suffered as an asset class in 2011 they should outperform relative to developed markets in 2012. Their fundamentals remain solid in the long-term, and even if demand for their exports drops if developed countries slip into recession there is the potential for domestic markets to gain. Emerging market debt also appears to have comparative potential amid improving sovereign creditworthiness.

 

INVESTMENT MANAGER

The Global Strategy Alpha Portfolio is managed by 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.