30.05.2013

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 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 investment funds diversified across worldwide developed, emerging and frontier markets.

 

STRENGTH IN DIVERSITY

A cornerstone of the Fund’s strength is its diversification across sectors and countries. 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 manager diversification and, through this, access to local fund managers’ expert market knowledge. Local knowledge is vital when investing in regions where outsiders’ access to knowledge is limited. This is particularly true with many emerging and frontier markets as opposed to developed markets where knowledge is generally readily available to everyone.

 

The Fund also provides a number of other key benefits for investors, including:

 

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

As the Fund’s portfolio manager, Sebastien Legoff, explains: “The Fund is an excellent option for investors looking for market and asset class diversity and who want to take advantage of the benefits of actively-managed volatility. Also offering access to a diverse range of underlying fund managers with expert knowledge of their local markets, the Fund is a strong investment package.”

 

 

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

The continuing Eurozone crisis remains a major risk for markets around the world, including emerging markets which can be negatively affected by external effects, especially in the world’s major importing countries and regions. Indeed, the recent Cypriot crisis provided a timely reminder of the fact that Europe’s woes are unlikely to end any time soon – something which will continue to drag on global growth. However, underlying fundamentals in many emerging market regions, for instance South-East Asia and Latin America, are sound and should underpin further growth and opportunity. Meanwhile, individual emerging markets retain the potential for stunning returns – the world’s best performing markets in 2012 were in Africa and Asia and delivered returns of between 30% and 50%.

 

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 17th December 2010 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.