SEARCH A FUND

Year to date performance overview

Note: Performance data net of fees (B units) in euros at 31 August 2022. Past performance is not a guide to future performance. References to a market index or peer group are for comparison purposes only; the market index is not mentioned in the sub fund's investment policy.
Sources: BLI/Lipper.

On a YTD basis, in a market environment marked by a particularly tense geopolitical environment, very high inflation and a drastic change in tone on the part of the central banks, the Fund generates a performance slightly higher than that of its peer group.

  YTD 3 years 5 years
BL Global Flexible EUR -7.5% 8.5% 24.5%
Peer group * -9.1% 4.4% 5.6%
* Lipper Global Mixed Asset EUR Flex - Global

Overall, since the beginning of the year, the portfolio's low bond weighting in a context of rising rates and the hedging of part of the equity exposure have contributed positively to performance. Investments in gold stocks weighed on the Fund's performance.

Portfolio positioning

Asset allocation

At 31 August 2022, the portfolio was exposed to equities for 74.5% gross (on 70 positions) and 48.73% net (after hedging by US, Eurozone and Switzerland equity indices). These hedges were initiated in March after the Russian invasion of Ukraine and slightly strengthened in June and July.

Bond investments remain limited (7%) while gold stocks represent 12.11% of the portfolio and cash 6.45%.

Recent transactions

In a declining equity market, the equity component was actively managed according to stock selection opportunities, notably by strengthening certain positions during price weakness while new companies entered the portfolio: Amazon, Aptar Group, Jack Henry & Associates, Kerry Group, Logitech, Disco Corp, Terumo (January), Novartis, Hong Kong Exchanges (March), Verisign (May), Daifuku, Hoya and Recruit Holdings (June).

In terms of sales, several stocks left the portfolio: Essity, Jardine Matheson, Orion, Kimberly Clark de Mexico (January), CK Asset Holdings, CP All, Otsuka, Santen Pharmaceutical, SATS, Want China (February), Diageo, Tencent Holdings (March), Pernod Ricard, Calbee (April), Femsa, Grifols, Jack Henry and Netease (June).

While Newmont Mining, SSR Mining were sold, the Fund Manager took advantage of the weakness in gold prices to increase the weighting of Agnico Eagle, Franco Nevada, Wheaton Precious Metals and Royal Gold.

The bond allocation was slightly increased during the first half of the year, taking advantage of the weakness of the bond markets (in April and May) and opportunities in inflation linked bonds.

Conclusion

After a historic correction in the first half of the year, the global equity market rebounded strongly in July, rising by just over 9% in euros before losing just over 2% in August.

Two important factors contributed to this rally of risky assets in July. On the one hand, the publication of generally reassuring quarterly corporate results. On the other hand, the slight decline in inflation recorded in the United States in July. This slight decline in price growth in the United States was interpreted favorably by the markets, supported by the idea that inflation has reached its peak.

However, the central bankers in the main developed countries recalled their determination to continue tightening monetary policies, which led to a reversal of the trend in August.

The equity component, which now accounts for 74.5% (gross) and 48.8% (net) of the portfolio, remains the main contributor to the portfolio's long-term performance. It is composed of quality securities with complementary profiles combined according to the market context (secular growth, attractive valuation, defensive character). In addition, positions in cash, long dated sovereign bonds and gold companies are maintained to protect the portfolio during more difficult periods for equities.

Disclaimer

This is a promotional document meant solely for institutional investors. It refers directly or indirectly to one or more financial products (“Financial Product(s)”) The economic and financial information contained in this publication is solely for informative purposes on the basis of information known at the date of publication. Such information does not constitute investment advice, a recommendation or a solicitation to invest and must under no circumstances by interpreted as legal or financial advice. No guarantee is offered regarding the accuracy, reliability, recency or exhaustiveness of said information.

BLI - Banque de Luxembourg Investments (“BLI”) alerts any recipient of this document to the need to take the utmost care in using any information pertaining to a Financial Product, particular information pertaining to the performances of this Financial Product:
• where applicable, all scenarios pertaining to future performances contained in this document are an estimate of said future performances based on past data relating to the securities contained in the Financial Product and/or current conditions. They do not constitute an accurate indicator, and other factors pertaining to market trends and the holding period of the Financial Product must be considered.
• Conversely, the Financial Product’s past performances are not a reliable indicator of its future performances.

Generally speaking, BLI assumes no liability regarding the future returns of these Financial Products and may not be held liable for such information or any decisions that an investor might take on the basis thereof. Interested persons must ensure that they understand all the risks inherent in their investment decisions and must abstain from investing as long as they have not carefully assessed, in coordination with their own advisers, whether their investments suit their specific financial situation, particularly regarding legal, tax and accounting aspects.

They must also take into account all the characteristics and objectives of the Financial Product, particularly when said product makes reference 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 are authorised solely on the basis of the current prospectus, the latest annual or semi-annual report and the Key Investor Information Document (KIID) (the “Documents”). The Documents are available free of charge from BLI at any time. All Documents, including disclosures on sustainability, are available on BLI’s website at www.bli.lu.

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.