FUND OVERVIEW BELFUND SICAV BELINVEST EQUITY FUND · 2017-04-07 · Fund Manager Peter Ahluwalia...

FUND OVERVIEWBELFUND SICAV – BELINVEST EQUITY FUND

April 5, 2017

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.

205.04.2017 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:

The biggest contributors to performce over the quarter were -

Viacom – which was up 33% over the first 3 months of the year as the new CEO Bob Bakish showed evidence of a turnaround in the company and continued to make significant changes to release the intrinsic value. Compared to the market and it`s peer group the valuation looks compelling and we expect this to narrow going forward.

Apple – increased by 24.41% over the quarter and continues to remain an emotional stock for many investors however it`s valuation remains undemanding and it continues to grab the majority of the profitability within the smartphone market. Service revenue within the company is often overlooked but becomes more important with each passing year. The new iphone 8 which is expected to be launched this year is likely to propel earnings significantly higher and is probably the beginning of a profit super cycle.

Western Digital - was up 21.68% over the quarter as analysts scrabbled to raise their price targets and earnings estimates. We still feel that the market`s forecasts are too conservative and expect the company`s share price to break significantly higher given it`s cheap valuation.

Deutsche Lufthansa - was up 23.88% over the quarter as the company`s results beat expectations and analysts raised their price targets (still to levels below it`s current share price). Despite being an unpopular stock we expect further appreciation as analysts are forced to capitulate.

Our position in Eutelsat- another deeply unpopular stock was sold with a 20% gain in a few months.


AS OF MARCH 31, 2017

MONTHLY UPDATE

The Fund started investing on April 5, 2016. As of March 31, the fund has a bias to European compared to US Equities. Overall, a performance of +23.136% can be reported since its launch (net of costs), compared to a Benchmark return of +15.651%. Since the fund is fully invested, a significant outperformance compared to its benchmark can be reported. Biggest return contribution came from investments in Western Digital (+70.04%), Apple (+43.77%) and Fiat Chrysler (+36.69%). Negative contributor to performance was L Brands (-22.19%) which is a small position that we will probably add to once we are sure it has bottomed out.

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. 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!

The cash which was raised at year end has now been largely reinvested as most of the worries receded and there remained plenty of opportunities at the individual stock level.

Given what we expect to be volatile market conditions in 2017 a fluid investment style (being able to admit when you are wrong and change course) along with nimbleness will be essential tactics to make money this year in addition to the usual bottom up stock analysis.

A disciplined procedure of price targets is maintained and adhered to in terms of selling discipline.

4

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 Western Digital – a US company specialized in computer data storage and it is one of the largest hard disk drive manufacturers. Overall contribution of this trade to the fund was 70.04%. Despite the strong gains the company is still trading at a forward PE below 11x.


IDENTIFYING VALUE EARLY


initial investment

5

Fiat Chrysler Automobiles (FCA) designs, engineers, and makes passenger cars, light commercial vehicles, components and production systems worldwide. Its automotive brands include Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Ram, SRT, and Maserati, as well as Mopar. Fiat Chrysler is the seventh largest automaker in the world. Overall contribution of this trade to the fund was 36.69%. Again despite gains the valuation remains compelling at below 5x forward PE.



initial investment

taking profit

subsequent investment



IDENTIFYING VALUE EARLY

High Water Mark:

USD48%

EUR13%

CHF39%

SHARE CLASS OVERVIEW



FUND AUM

As of March 31, 2017 the AuM of the Fund has reached a value of USD 71’337’113. 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 March 31, 2017.

Source: Bloomberg & Pictet Connect.

Country Holdings % Fund

United States 35.6%

France 27.7%

Germany 7.9%

Britain 3.9%

Luxembourg 3.6%

China 2.9%

Switzerland 2.7%

Denmark 2.6%

Others 6.2%

Liquidity 7.0%

Top 10 Holdings % Fund

Western Digital Corp 5.4%

Viacom Inc 4.6%

Apple Inc 4.2%

Fiat Chrysler Automobiles NV 3.9%

Ubisoft Entertainment SA 3.8%

Vinci SA 3.7%

APERAM SA 3.6%

Amazon.com Inc 3.5%

TEGNA Inc 3.4%

Deutsche Lufthansa AG 3.3%

Liquidity 7.0%

Sector Holdings % Fund

Consumer Discretionary 34.8%

Information Technology 18.0%

Industrials 12.2%

Health Care 6.5%

Materials 6.3%

Financials 5.2%

Consumer Staples 4.2%

Telecommunication Services 2.2%

Utilities 2.0%

Energy 1.6%

Liquidity 7.0%

Key Figures of the Fund

Average forward PE 15.26x

Average Dividend yield 2.31%

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.

Due to compliance issues at the custodian of the fund, the benchmark for the fund will be changed in April to the MSCI AC World in $.


Source: Bloomberg.

Fund Performance in %:

04 / 2016 05 / 2016 06 / 2016 07 / 2016 08 / 2016 09 / 2016 10 / 2016 11 / 2016 12 / 2016 01 / 2017 02 / 2017 03 / 2017 YTD Since Inception

USD Share Class 0.580% 0.357% -5.626% 4.752% 0.788% 0.772% 1.408% 1.553% 6.536% 3.273% 3.269% 3.835% 10.739% 23.136%

EUR Share Class 0.547% 0.260% -5.968% 4.585% 0.741% 0.639% 1.264% 1.567% 6.292% 3.096% 3.199% 3.660% 10.288% 21.186%

CHF Share Class 0.530% 0.212% -6.004% 4.571% 0.675% 0.593% 1.232% 1.582% 6.249% 3.032% 3.176% 3.618% 10.150% 20.689%

Benchmark * 1.735% 0.689% -3.063% 4.444% 0.440% 0.158% -1.228% 0.242% 4.630% 1.297% 2.563% 3.227% 7.191% 15.651%

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

High Water Mark:


COMPARED TO ITS PEERS, AS OF MARCH 31, 2017

FUND PERFORMANCE

Performance of the fund since launch:


Source: Bloomberg

High Water Mark:


COMPARED TO ITS PEERS, AS OF MARCH 31, 2017

FUND PERFORMANCE

Performance of the fund since it is fully invested:


Source: Bloomberg



KEY FUND DATA

Fund Manager Peter Ahluwalia

Investment Manager swisspartners AG, Liechtenstein

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 March 31, 2017 USD 71.33 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 · 2017-04-07 · Fund Manager Peter Ahluwalia...

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