29.06.2012

Sebastien Legoff

Portfolio Manager

Delubac Asset Management

 

Taking advantage of diversification across global markets and asset classes and offering a balanced investment opportunity and actively-managed volatility, the WPP New Global Equity Markets Risk 18% Portfolio is tailor-made to meet the needs of the inexperienced investor as well as those with years of experience in capital markets.

 

OVERVIEW

The Fund is structured as a fund of funds, allowing investors to invest according to their level of risk tolerance and investment goals. It invests a minimum of 75% of its net assets in investment funds investing in equities and equity related securities and aims to achieve a three year historic volatility within a range of 15% to 21%. Focusing on global equity and bond markets and aimed at maximising long-term capital growth in EUR, the portfolio includes more than 20 investment funds diversified across worldwide developed, emerging and frontier markets.

 

STRENGTH IN DIVERSITY

There are a number of key benefits the Fund provides, including:

 

  • Attractive growth potential driven by a mixture of assets from developed, emerging, and frontier markets.
  • Investment risk profile is maintained with actively managed volatility.
  • A significant part of portfolio investment is allocated in emerging markets with growth potential expected to lead global recovery.
  • Global diversification with varied asset classes.

 

ADVANTAGES OF DIVERSITY

Diversity is one of the cornerstones of the Fund’s strength and its diversification across sectors and countries remains a key benefit. The Fund’s global investment scope means that the Fund manager can create a broad holding of funds so that if one sector or market in an area of the world is performing less well, it has holdings in other parts of the globe or other sectors to counterbalance this. Also, as a fund of funds, the Fund offers access to local knowledge and manager diversification. Many retail investors do not have access to local fund managers who operate in many emerging market regions. Local knowledge is vital when investing in regions where outsiders’ access to knowledge is limited. This is particularly true with many emerging markets as opposed to developed markets where knowledge is generally readily available to everyone. In addition, funds of funds offer manager diversification to the investor, thus minimizing the overall risk undertaken.

 

COMPREHENSIVE INVESTMENT MANAGEMENT

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.

 

OUTLOOK

Crucial to the Fund is, of course, the conditions and performance of global markets. Economic data from the US continues to be generally positive and the economy appears to moving forward. Consumer data in particular has recently shown an upward trend. Emerging markets and frontier markets should also continue to deliver through the year, thanks to moderate valuations and good growth prospects. Despite slowing manufacturing activity in China due to falling demand in the country’s major export markets, economic conditions remain favourable in much of the Asia-Pacific region. However, it should be noted that volatility is likely to remain a strong market characteristic as investors will continue to focus heavily on the situation in Europe.

 

INVESTMENT MANAGER

The Fund’s investment manager is Delubac Asset Management, the award-winning asset management arm of Banque Delubac & Cie, a French independent private bank established in 1924. Since its creation, the company has specialised in fund picking (multi management) and asset allocation. The company offers its clients discretionary portfolio management services and collective investment vehicles. Under a family banner with a growing reputation, Delubac Asset Management has developed a niche expertise in emerging markets funds of funds.

 

IMPORTANT NOTE: This report has been prepared for information only, and it does not represent an offer to purchase or subscribe to shares. World Performance Portfolios (“WPP”) 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. WPP 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. WPP prospectus is available and may be obtained through www.1cornhill.com. Before investing in any WPP Sub-fund(s) investors should contact their financial adviser / legal adviser / tax adviser and refer to all relevant documents relating to the WPP 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 WPP is a suitable investment for them.