Bellevue Global Macro (Lux)
The world in one portfolio - all-weather strategy with absolute return approach
The fund seeks consistent positive annual returns over the business cycle
UCITS V regulated absolute return strategy with daily liquidity
Please find a more detailed description of share classes here.
The Fund’s objective is to generate consistent absolute returns of 5-7% p.a. in any market environment with an annualized volatility of 5-7%. The Fund actively invests globally in several asset classes with the possibility to build up long- and short exposure, maintaining a constant level of risk over time.
Indexed performance (as at: 22.03.2023)
NAV: EUR 166.50 (13.03.2023)
Rolling performance (13.03.2023)
|11.03.2022 - 13.03.2023||-2.92%||0.55%|
|12.03.2021 - 11.03.2022||-8.79%||-0.57%|
|13.03.2020 - 12.03.2021||15.11%||-0.46%|
|13.03.2019 - 13.03.2020||-7.07%||-0.42%|
Annualized performance (13.03.2023)
|Since Inception p.a.||2.24%||0.06%|
Cumulative performance (13.03.2023)
Facts & Key figures
The Fund’s objective is to generate consistent absolute returns of 5-7% p.a. in any market environment with an annualized volatility around 5-7%. The Fund actively invests globally in several asset classes with the possibility to build up long and short exposure, maintaining a constant level of risk over time. A proprietary global macro screening engine supports an experienced team of specialists to express their market views and to define the most successful top down strategies. Risk is an integrated part within the entire investment process. By targeting an explicit risk level on a daily basis the risk profile is maintained over time. The portfolio is mainly invested in liquid assets, the Fund offers daily liquidity. The Fund takes ESG factors into consideration while implementing the aforementioned investment objectives.Show moreShow less
Investment suitability & Risk
|Investment Manager||Bellevue Asset Management AG|
|Custodian||RBC Investor Services, Luxembourg|
|Fund Administrator||RBC Investor Services, Luxembourg|
|Year end closing||30. Jun|
|NAV Calculation||Daily "Forward Pricing"|
|Cut of time||15:00 CET|
|Subscription Fee (max.)||5.00%|
|Performance Fee||10.00% (with High Water Mark)|
|Total expense ratio (TER)||1.90% (28.02.2023)|
|Legal form||Luxembourg UCITS V SICAV|
|SFDR category||Article 8|
Key data (28.02.2023, base currency EUR)
|No. of positions||97|
Opportunities & Risks
- Fund targets to achieve consistent absolute returns across the economic cycle
- Systematic investment approach – based on proprietary models developed over the past 23 years
- Use of leverage is possible, the net exposure is usually between 120% and 150%.
- Possibility to make short investments if the market environment offers appropriate opportunities to do so.
- UCITS V regulated absolute return strategy with daily liquidity.
- The fund may engage in derivatives transactions. The increased opportunities gained come with an increased risk of losses.
- The fund may invest part of its assets in bonds. Their issuers may become insolvent.
- The investment in fixed-interest securities gives rise to interest rate risks.
- Investing in emerging markets entails the additional risk of political and social instability.
- The fund invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
Review / Outlook
The fund returned -2.5% in February with a volatility of 6.1%. During the month, the MSCI World Equity Index lost 2.5%, the JP Morgan Global Government Bond Index fell 1.0% and commodities lost 3.8%, all figures in euro hedged terms.
Renewed inflation fears negatively impacted all major asset classes. Consequently, all strategies contributed negatively to the fund performance with government bonds -0.94%, equities -0.85%, non-government bonds -0.27%, foreign exchange -0.25% and gold -0.15%. Government bonds were impacted by the 41 bps widening in the US 10-year treasury yield to 3.92%. The equity strategies were penalized by the biotechnology sector but underpinned by the dividend futures which contributed positively. Within non-government bonds, emerging markets were the most affected.
During the month, we reduced the equity exposure from 33% to 25% as the macro-outlook worsened. We lowered the exposure to the biotechnology sector from 16% to 9% and to the dividend futures from 10% to 6% on valuation grounds. We slightly increased the exposure to long term government bonds from 34% to 38% and non-government bonds from 27% to 28% in the market weakness. The total portfolio duration is 3.2 years vs the long-term average of 3.8. The main hedges of the fund are the 38% US 7-year treasury position, the 16% USD exposure and the 5% gold exposure.
We reviewed our scenarios on February 27. We increased the weight of scenario 3 and decreased scenario 1 and 2:
Scenario 1, weight 35%: US leading indicators bottom out, signaling that the worst of the economic slowdown is past. Markets rally. US inflation is likely to fall from now until June 2023 due to a pronounced base effect and the impact of monetary tightening. A Fed pivot would cause equity markets to rally. This is positive for non-government bonds, neutral to negative for government bonds and negative for the USD.
Scenario 2, weight 35%: Markets have already rallied significantly, interest rate expectations are too optimistic. The latest data continues sending mixed signals about a possible recession and uncertainty remains. Markets consolidate. This is slightly positive for equities and non-government bonds and slightly negative for government bonds.
Scenario 3, weight 30%: Re-accelerating inflation, deteriorating economic conditions, global trade tensions precipitate a market correction. This scenario is less likely on the 3-6 months horizon of these projections but has a higher probability on a 12-18 months basis, in our view. These risks combined would prevent central banks from loosening monetary policy in a significant way. Under this scenario, equity markets and non-government bonds correct. Government bonds, the USD and possibly gold would provide some limited shelter.
Past performance is not a reliable indicator of future results and can be misleading. As the subfund is denominated in a currency that may differ than an investor’s base currency, changes in the rate of exchange may have an adverse effect on prices and incomes. Performance is shown net of fees and expenses for the relevant share class over the reference period. All performance figures reflect the reinvestment of dividends and do not take into account the commissions and costs incurred on the issue and redemption of shares, if any. Individual costs are not taken into account and would have a negative impact on the performance. With an investment amount of EUR 1,000 over an investment period of five years, the investment result in the first year would be reduced by the front-end load of up to EUR 50 (5%) as well as by additional individual custody charges. In subsequent years, the investment result would also be reduced by the individual custody account costs incurred. The reference benchmark of this class is used for performance comparison purposes only (dividend reinvested). No benchmark is directly identical to a subfund, thus the performance of a benchmark is not a reliable indicator of future performance of the subfund it is compared to. There can be no assurance that a return will be achieved or that a substantial loss of capital will not be incurred. All figures in base currency in %, calculated by the total return / BVI method.Show moreShow less