Strategy overview

BL Global Flexible EUR is a flexible asset allocation fund that aims to generate an attractive return over the medium term.

The Fund invests in asset classes that are often inversely correlated, each having a specific role to play in the portfolio depending on the market context:

  • Equities are the main long-term driver of returns;
  • Bonds: A factor of stability during periods of turbulence on the stock markets;
  • Gold (via gold-mining stocks): Protection against macro/geopolitical/systemic risks;
  • Cash serves as a reserve to invest when opportunities arise.

Finally, BL Global Flexible EUR is a fund classified as Article 8 according to the SFDR regulation. It integrates ESG factors into different stages of its investment process and is committed to investing a minimum of 20% of its assets in assets that are considered sustainable (according to BLI's internal methodology).
The Fund also benefits from the “Label ISR” (France) attesting to the solidity of the SRI approach implemented.

Recent positioning and movements

The Fund Manager has not made any significant changes to the asset allocation since the beginning of the year. The equity allocation remained stable, hovering around 70%. The Fund Manager maintained an equity hedge of 25% -24% through the sale of futures on the S & P Euro500, Stoxx 50 and SMI indices. The weighting of the bond portion was slightly increased as a result of the rise in rates in February and May, from 10% to nearly 13%. The gold weighting remained stable at around 14%.

In terms of regional allocation of the equity pocket, the Fund Manager maintains a significant exposure to Asian markets, whether Japan or emerging Asia. In particular, Japan should benefit from a structural trend towards better allocation of capital and improved profitability of Japanese companies. Conversely, US market weight remains well below the MSCI World Index.

Year to date holdings in Adobe, Alphabet, Mastercard, Christian Hansen, Bridgestone, Adidas and Travelsky exited the portfolio and seven new stocks were added to the portfolio: Canadian National Railway, Edwards Lifesciences (Healthcare), Equifax (Credit Software), Nomura Research Institute (consulting), Pembina Pipeline (Energy Transportation), ASML (Semiconductor Supplier), Tokyo Electron (Semiconductor Production Equipment Fabricants).

In the gold pocket, royalty companies were increased at the expense of producers.


Note: Performance data net of fees (share class B) in EUR. Past performance is not a guide to future performance. References to a market index or peer group are made for comparison purposes only; the market index is not mentioned in the investment policy of the sub fund.
Source: BLI/Lipper. Data as of 31 May 2023.

Since 31/12/2022 3 months 1 year 3 years 5 years
Fonds 3,3% 4,1% -1,6% 5,6% 23,1%
Lipper Global Mixed Asset EUR Balanced 3,2% 0,8% -2,1% 6,6% 4,9%

Since the beginning of the year, the Fund has posted a performance in line with its peer group posting positive performances each month except in February which turned out to be more complicated as a result of the rise in bond yields, which negatively impacted bonds and gold. On the other hand, the lack of exposure to banking stocks meant that the Fund was not affected by the problems in the banking sector that arose in March.

Overall, the equity positions in the portfolio contributed positively to the Fund's performance, particularly European and Japanese stocks.
Equity hedging strategies weighed on performance in an overall rising equity market environment despite palpable fears of an economic recession in the coming months. Given BLI's macro scenario of a likely recession, the Fund Manager maintains this cautious view.


The impact of monetary tightening initiated by central banks in March last year is becoming increasingly visible. The slowdown is therefore likely to continue and a recession seems possible in the second half of the year or early 2024. If that were the case, there was a risk that stock markets could see a second earnings related downtrend, whereas last year's earnings downtrend was driven by multiple contraction.

Unless large cap tech stocks regain market leadership, US market outperformance looks behind us. Such a leadership recovery would require a return to the environment that had characterised the 2009's to 2021's, marked by moderate growth, stable inflation and ever lower interest rates. The possibility of a new structural environment emerging, with higher inflation leading to higher nominal growth, will have positive implications for other markets, particularly Asian markets.

Government bonds should continue to benefit from the economic slowdown and lower inflation in 2023, although longer term rates are already pricing in weaker economic activity and the end of central bank tightening. Their long-term prospects, on the other hand, appear poor, given the financing needs of governments and the risk of higher inflation in the long term.

Gold continues to be well positioned in a diversified portfolio, particularly given the possibility that central banks may sooner than expected exit from monetary tightening. An investment in gold should, however, be viewed as insurance and not as a short term investment.

Author : Guy Wagner, CIO and portfolio manager at BLI,
BLI - Banque de Luxembourg Investments, a management company authorised by the Commission de Surveillance du Secteur Financier Luxembourg (CSSF).

Reporting period: 31/12/2022 to 31/05/2023
Final editorial date: 09/06/2023 at 4pm
Publication date: 19/06/2023 at 14h00

Legal notice

This document is issued by BLI - Banque de Luxembourg Investments ("BLI"). It refers directly or indirectly to one or more financial products (the "Financial Product") and constitutes a marketing communication within the meaning of Regulation (EU) 2019/1156 of 20 June 2019 on facilitating cross-border distribution of collective investment undertakings. Economic and financial information contained in this publication is provided for information purposes only based on information known at the date of publication. This information does not constitute an investment advice, an investment recommendation or a solicitation to invest and should not be understood as legal or tax advice. No warranty is given as to the accuracy, reliability, timeliness or completeness of this information.

BLI draws the attention of any recipient of this document on the need to use with the utmost caution all information relating to a Financial Product, in particular that relating to the performance of such Financial Product:
- Where applicable, any scenarios relating to future performance in this document are an estimate of such future performance based on evidence from the past on how the value of this Financial Product varies and/or current market conditions. They are not an exact indicator and what you will get will vary depending on how the market performs and how long you keep the Financial Product.
- Conversely, the past performance of the Financial Product does not predict its future returns.

In general, BLI does not assume any responsibility for the future performance of these Financial Products and will not be liable for any decision that an investor may make based on this information. Interested persons should ensure that they understand all the risks inherent in their investment decisions and should refrain from investing until they have carefully assessed, in collaboration with their own advisors, the suitability of their investments to their specific financial situation, in particular with regard to legal, tax and accounting aspects.
They must, moreover, consider all the characteristics and objectives of the Financial Product, in particular where it refers to sustainability aspects in accordance with Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector.

Subscriptions in a Financial Product are only permitted on the basis of its current prospectus, Key Information Document (KID) and the latest annual or semi-annual report (the "Documents"). The Documents are available free of charge at BLI’s registered office at regular business hours. All the Documents, including the sustainability information and the summary of investor’s rights, are available on BLI's website at

Any reproduction of this document is subject to the prior written consent of BLI.

Specific Information concerning MSCI Data:
All MSCI data is provided “as is”. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the result to be obtained by the use thereof) and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent.

Specific Information concerning GICS Data:
The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard and Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”) and is licensed to use by Banque de Luxembourg S.A.. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any of such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS classification have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if noticed of the possibility of such damages.