This month, in a continuation to align our selection to our customers’ request for more defensive fund managers, we have made various changes to our list.
We have downgraded 2 funds, and added 2 funds.
Drop & Cease Coverage
Russian equity fund has been put “On Hold” in March 2022 following the conflict in Ukraine and its indefinite suspension of the NAV, subscriptions, and redemptions . Given the lack of visibility on trading capabilities for foreign investors, we decided to downgrade the fund to “cease coverage”.
UK Equity Fund: This fund has experienced a dreadful underperformance both on an absolute and relative basis over the last 12 months. The drift in performance has reached unsustainable levels, amplified by the fund’s very low turnover. A recent change of the lead portfolio manager level has added uncertainty to the fitting of the investment approach to the current environment. The rotation and sell-off experienced since the beginning of the year advocated for portfolio adjustments not consistent with the buy and hold strategy of this fund. While we may reconsider our views on this strategy later, in the meantime we cease its coverage.
New Funds in the MasterList
Global Multi-Strategy fund, a UCITs market-neutral, alternative multi-strategy which invests across a diversified set of bottom-up strategies including convertible arbitrage, event-driven, price analysis, risks transfer, and hedged equity combined with a “protection” strategy.
A global strategy that seeks to provide positive absolute returns with low to moderate volatility (4% to 8% long term) and low correlation to both traditional and alternative asset classes.
Historically, the fund has delivered the decorrelation benefits when diversification failed and protection was most needed during the biggest markets’ sell offs. Since 2012 the max drawdown is -2.3%, in line with expectations. No negative calendar year since 2012.
Global Equity Income fund that aims to provide investors with both income and long-term capital appreciation. It invests in companies that are attractively valued, that are well placed to steadily grow their dividend over the long term and with a history of generating consistently high returns on capital. The strategy seeks to provide a dividend yield higher than the global market average.
Blended strategy, well diversified in-country and sectors, mainly invested in large cap. Consistent, disciplined, and cycle-tested methodology and screening tool, implemented strictly since inception.
We hope that you will find these communications insightful, should you have any further interest related to our selection services, do not hesitate to contact us, we would be delighted to assist you.
WSP Analysts team