fund overview belfund sicav belinvest equity fund · 2016-10-17 · 12.10.2016 swisspartners 9 as...

FUND OVERVIEWBELFUND SICAV – BELINVEST EQUITY FUND

October 12, 2016

High Water Mark:

The Fund will mainly offer an exposure to equities and equity related securities. The choice of investments of the Fund will neither be limited by geographical area (including emerging markets), economic sector, nor in terms of currencies in which investments will be denominated. However, depending on financial market conditions, a particular focus can be placed in a single country (or some countries) and/or in a single currency and/or in a single economic sector.

On an ancillary basis, the Fund may invest in any other type of eligible assets, such as debt securities or eligible UCIs.

For hedging and investment purposes, the Fund may use all types of financial derivative instruments traded on a regulated market and/or over the counter (OTC) provided they are contracted with leading financial institutions and subject to regulatory supervision.

212.10.2016 swisspartners

OBJECTIVE OF THE FUND

The objective of the Fund is to produce an attractive absolute and relative return over time by offering an exposure mainly to blue chip equities and equity related securities which are growing faster than the market but trading at a discount to it. Equities which are trading at a significant discount (value stocks) but have a catalyst to release their value will also be part of the portfolio. The Fund tends to favor companies which have a high free cash flow yield. Given more volatile markets the timing of investments will remain an important consideration.

“Blue Chip” companies are considered as those with leading market position and strong financial fundamentals, generally with a minimum market capitalisation level of EUR 10 billion following the view of the Investment Manager.

High Water Mark:

Strategy highlights:

Apple is the largest company in the world manufacturing technology devices and services. Cheap valuation (PE of 7x when you strip out the cash)and high free cash flow yield (div. yield of 2.38%; P/E of 10.71, EPS of 8.25 and FCF yield of over 10%). Apple trades at a big discount to the overall market for emotional reasons – investors still remember Blackberry and Nokia. Service revenue is expanding rapidly and the company`s prudent policy of only making selective acquisitions along with a stock buy back programme should help. Expectations for the new iphone 7 sales are too low and should easily be beaten by the company.

Viacom – a 2% position initially bought in the company and when the market panicked over the Dish renewal talks, the manager added to the existing position. As expected the renewal talks succeeded with the net result of close to a 15% gain in the stock price. Now that the CEO of the company has effectively been removed this could clear the way for a minority sale of Paramount pictures and also a reintegration of the company with CBS thereby unlocking value for shareholders.

Deutsche Lufthansa - whilst probably not the best airline in the world it certainly does not deserve to be priced like the worst. The resignation of the long time CFO (for legitimate reasons) severely hurt the stock price. An excellent new CFO has now been announced and the company has confirmed that there should be no impact to profits as a result of the BREXIT.

With a dividend yield of 4.55% and a PE of 4x and free cash flow yield of over 11% the valuation looks compelling.


AS OF OCTOBER 11, 2016

MONTHLY UPDATE

The Fund started investing on April 5, 2016. As of October 11, the fund is nearly equally invested in European and US Equities. Overall, a performance of 0.754% can be reported since its launch (net of costs, with 98% of the assets invested), compared to a Benchmark return of +3.029%. Since the fund is fully invested, a significant outperformance compared to its benchmark can be reported. Biggest return contribution came from investments in Alibaba (+39.09%), Western Digital (+29.72%), and Maisons du Monde (+16.91%). Negative contributor to performance was Mediaset(-25.03%) due to the temporary collapse of talks regarding the purchase of Mediaset Premium by Vivendi.

The Fund took advantage of the volatility following the UK referendum to get fully invested having entered this volatile period with over 15% in cash. Quality businesses such as Vinci, Metro, Saint Gobain and Deutsche Telekom were purchased. Weakness in existing positions such as Deutsche Lufthansa, Axa, Telecom Italia and Eiffage were used as opportunities to add to the positions.

Whilst there has been a lot of noise and volatility following the UK referendum it will probably only reduce European growth by 0.3%. The differential between European and US GDP growth is narrowing however markets do not seem to be pricing this in. Taking a step back from the market melee the European Union is the largest trading block and economy in the world. 500mn people are unlikely to vanish overnight!

Given the high volatility in financial markets, market timing of investments will remain a key performance driver for the Fund. The chart below gives an example of timing in investments in Alibaba Group – a Chinese e-commerce company that provides sales services via web portals. Overall contribution of this trade to the fund was 39.09%.


IDENTIFYING VALUE EARLY


initial investment

Given the high volatility in financial markets, market timing of investments will remain a key performance driver for the Fund. The chart below gives an example of timing in investments in LVMH Moet Hennessy Louis Vuitton SE – a French multinational luxury goods conglomerate, which was established in 1087 with the merger of Louis Vuitton with Moet Hennessy. Overall contribution of this trade to the fund was 4.28%. The proceeds from the sale were switched into Christian Dior (45% shareholder in LVMH) which was trading at a much cheaper valuation and is under researched by analysts.


RELATIVE SWITCHES TO ENHANCE PERFORMANCE


initial investmenttaking profit

second investment

High Water Mark:

USD43%

EUR14%

CHF43%

SHARE CLASS OVERVIEW



FUND AUM

As of October 11, 2016 the AuM of the Fund has reached a value of USD 53’208’939. The chart on the right side provides an overview of the different share classes of the Fund.

All share classes, except the base currency, are fully currency hedged.

Important: Investors should carefully consider the usual risks of investing and participating by investing in listed and unlisted securities. For further information please consult the Key investor Information Document (KIID) and the actual prospectus of the Fund.

Risk considerations:

Currency Share Class

ISIN Bloomberg Valor

USD A LU1265904661 BELIEAU LX 28867138

EUR (Hedged) A LU1265906799 BELIEAE LX 28867180

CHF (Hedged) A LU1265911955 BELIEAC LX 28867182

1 2 3 4 5 6 7

Lower risk Higher RiskPotentially lower reward Potentially higher reward

High Water Mark:



FUND HOLDINGS

Below you can find a snapshot of the current investments:

Data as of October 11, 2016.

Source: Bloomberg & Pictet Connect.

Sector Holdings % Fund

Consumer Discretionary 36.7%

Information Technology 17.9%

Financials 11.7%

Industrials 11.6%

Consumer Staples 6.3%

Telecommunication Services 5.4%

Health Care 4.3%

Energy 2.4%

Utilities 1.6%

Materials 0.0%

Liquidity 2.1%

Top 10 Holdings % Fund

Apple Inc 6.6%

Western Digital Corp 6.3%

AXA SA 4.4%

TEGNA Inc 4.2%

Renault SA 3.6%

Viacom Inc 3.6%

Walt Disney Co/The 3.5%

L Brands Inc 6.3%

Airbus Group SE 3.5%

Deutsche Lufthansa AG 3.4%

Liquidity 2.1%

Country Holdings % Fund

United States 47.3%

France 25.7%

Germany 11.0%

Italy 8.0%

Britain 3.1%

China 2.8%

Belgium 0.0%

Liquidity 2.1%

Key Figures of the Fund

Average forward PE 12.39x

Average Dividend yield 2.62%

Average PEG 7.41

High Water Mark:



FUND PERFORMANCE

Below you can find a snapshot of the fund’s performance month over month and since inception. The Performance is displayed for the fund’s main share class (A; USD). The fund is fully invested since June 28th, 2016.

Since the fund is fully invested, a significant outperformance compared to its benchmark can be reported.

Data as of October 11, 2016.

Source: Bloomberg.

Fund Performance in %, A Share Class (USD):

April Mai June July August September Q3 2016 QTD Since Inception

Fund 0.580% 0.357% -5.626% 4.752% 0.788% 0.772% 6.392% -0.588% 0.754%

Benchmark * 1.735% 0.689% -3.063% 4.444% 0.440% 0.158% 5.073% -1.179% 3.029%

* The Benchmark consists of 50% S&P 500 and 50% Euro Stoxx 50 Net Return USD.



KEY FUND DATA

Investment Manager swisspartners AG, Liechtenstein

Fund Manager Peter Ahluwalia

Depositary Pictet & Cie (Europe) S.A., Luxembourg

Auditor Grant Thornton Lux Audit S.A., Luxembourg

Legal status Luxembourg SICAV with UCITS status

Fund dealing Daily

Dealing cut off 15:00 CET

Fund launch 4 April 2016

Benchmark 50% EuroStoxx50 and 50% S&P 500

Base currency USD

Available currencies USD, EUR, CHF

Fund size as of August 31, 2016 USD 51.4 m

Minimum investment n.a.

Eligible investors Retail Investors

End of fiscal year 31 December

Dividend distribution accumulating

Issue commission n.a.

Performance Fee 10%*

Management fee 1.00%

*including a High Water Mark

CONTACT


WE'RE HERE FOR YOU

Fund Manager

Peter AhluwaliaDirect +423 239 79 98 Mobile +41 79 916 12 [email protected]

Operations / Co-Fund Manager

Dominik WilliDirect +423 239 79 77Mobile +41 79 722 58 [email protected]

Member of the board

Thomas KünzleDirect +41 44 200 09 09Mobile +41 79 357 35 [email protected]

High Water Mark:


PETER AHLUWALIA

FUND MANAGER

Peter Ahluwalia joined swisspartners in 2010 as a front partner. After taking over the position as CIO of swisspartners Investment Network, he became CIO of swisspartners Advisors.

He has started his career at Lloyds Bank (Jersey) in the back office for financial services. After becoming an investment executive at HSBC Private Bank, he took over the advisory business at HSBC Investment Management before becoming head of Investment Advisory group at HSBC Private Bank. Peter has studied European Business Studies at the University of Buckingham and Lille University of Science and Technology. Furthermore, he is a Member of the Securities Institute (MSI), nowadays called Chartered Institute for Securities & Investment (CSSI).

This document is provided for information purposes only and does not constitute an offer, solicitation or recommendation on the part of swisspartners Investment Network AG (afterwards swisspartners) respectively their group companies (afterwards swisspartners too). Its content is based on proprietary insights as well as publicly accessible sources deemed reliable by swisspartners. swisspartners does not guarantee the accuracy, completeness, and currency of the information provided herein and accepts no liability therefor. At the most the information provided can not replace a personal consultation. No liability whatsoever shall be accepted for any damage or losses incurred as a result of the use of this documentation.

© swisspartners

Risk Disclaimer

This current risk profile is based on historical data and may not be a reliable indication of the future risk profile of the Sub-Fund. The risk category shown is not guaranteed and may shift over time. The lowest category, which corresponds to Number 1, cannot be regarded as being risk-free. The Sub-Fund does not provide any capital guarantee or asset protection measures.

Are there any other particular risks?

Risks that could affect fund performance and are not necessarily fully reflected in the risk and reward rating include:

• Liquidity risk

• Counterparty risks

• Credit risks

• Risk from the use of derivatives

• Operational risk

fund overview belfund sicav belinvest equity fund · 2016-10-17 · 12.10.2016 swisspartners 9 as...

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