13.07.2012

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. 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, with an objective of long-term capital growth in USD. It has a maximum 70% equity exposure and is an ideal choice for investors looking to build wealth over a longer period of time.

 

KEY ADVANTAGES

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

 

  • Transparent, single portfolio of open-ended collective investment schemes
  • Ranked with 5-stars rating by Morningstar, a worldwide leader in fund industry
  • An active multi-asset strategy with lower volatility
  • Emphasis on long term investing and capital growth in USD
  • 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.

 

CHALLENGING ENVIROMENT

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. Market performance so far this year has been a combination of sentiment and corporate and economic fundamentals. The start of the year saw a massive u-turn in investor sentiment as the gloom that shrouded markets at the end of 2011 lifted and markets around the world surged, driven by increasing optimism on a resolution to the Greek debt crisis and US economic recovery. US macro data continues to be encouraging and this should help maintain a generally positive trend in markets. Markets have also breathed a sigh of relief following the Greek bailout deal as well as the result of Greece elections and series of measures unveiled by EU leaders to stimulate EU economies.

OUTLOOK

Looking ahead, the second half of 2012 is likely to remain challenging. The US economy appears to be on the mend and should provide a tail wind for Asian equity markets. However, improvement in the US economy means that the Federal Reserve will take the pedal off the liquidity accelerator which consequently might be a test for the economy to prove that it can sustain its recovery trend. Despite slowing manufacturing activity in China due to falling demand in the country’s major exports markets, economic conditions remain favourable in much of the Asia-Pacific region. The likehood of a hard landing in China is small, but it is also unlikely that there will be double digit growth in the country anytime soon. With regards to the Eurozone, results of the Greek elections reduced concerns of a potential Greek exit from the Eurozone. Positive signals came also from European leaders who announced a series of unexpected measures to combat the on-going debt crisis which included a plan to provide direct funding to the European banks without adding to their respective country’s sovereign debt. This has partly mitigated market concerns regarding the recent problems in Spain´s banking sector as well as Cyprus being the fifth country to ask for bailout funds. However markets still remain cautious and are looking for more positive long term signs of stabilization and recovery.

 

 

INVESTMENT ADVISOR

The Fund’s investment advisor is 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.