BL Global Flexible EUR Fund's investment strategy is based on a long-term flexible allocation, assigning capital to four main asset classes that tend to be negatively correlated: Equities / Bonds / Gold / Cash.
However, the strategy does not involve market timing or short-term decisions.
Performance overview
* Note: Cumulative performance net of fees (B share). Past performance is not a guide to future performance. Source: Lipper.
YTD | MTD | Q3 | |
---|---|---|---|
BL Global Flexible EUR B Cap | -8,32% | 4,78% | -4,1% |
Lipper Global Mixed Asset EUR Bal - Global | -10,27% | 2,18% | -2,3% |
For the whole of 2022, in a macroeconomic context marked by strong inflationary pressures, a rise in long rates and increasingly concrete fears of a slowdown in the global economy, the strategy managed to reduce the decline compared to its peer group (Lipper Global Mixed Asset EUR Bal - Global).
However, the third quarter of 2022 proved complicated for the strategy confirming what the first half of the year had already shown, namely that in an environment of rising real rates, the principle of diversification underlying the management of the Fund shows certain limits, government bonds and gold not protecting the portfolio against the fall in stock prices. Thus, during this period, the three asset classes of the portfolio (equities, bonds and gold stocks) suffered from the continued rise in interest rates.
During November 2022, the Fund managed to outperform the universe of comparable funds.
- • Positive contribution:
- o Equities in all regions (Europe, North America, Japan, Asia excluding Japan);
- o US dollar hedging;
- o Bonds;
- o Gold stocks.
- • Negative contribution
- o Currency allocation ;
- o Partial hedging of equity risk exposure (in a rising equity market environment).
Asset allocation
Year to date, the Fund's asset allocation has changed as follows Dec 2021 March 2022 June 2022 Sep 2022 Nov 2022 Equities Gross exposure 72.88% 72.62% 72.42% 73.53% 73.50% Net exposure 72.88% 54.39% 50.63% 48.23% 46.50% Bonds 3.95% 5.03% 6.91% 9.02% 10% Gold stocks 12.46% 13.04% 11.45% 13.56% 14% Cash 10.72% 9.31% 9.22% 3.90% 2.5% Following the outbreak of the war in Ukraine, the Fund Manager decided to hedge part of his exposure to equity risk, this hedge is maintained given the risks currently weighing on the global economy.
During the third quarter, the Fund Manager used the continued rise in bond rates to strengthen the bond allocation through US government bonds.