WSP Model Portfolios are built from our universe of selected active Ucits funds. We manage actively the allocation according to current and expected market conditions and taking into consideration the fund managers’ exposure.
The aim is to demonstrate that an optimal combination of strategies, coupled with a careful selection of active fund managers, have the ability to deliver added-value to investors over the long run, while keeping a full exposure and constant asset allocation within the given investment profiles.
More detailed reporting including portfolio quantitative and qualitative data are available to customers having subscribed to the WS Partners Model Portfolio Services. Would you request more information on this service, please contact us.
Portfolios Structure
- Portfolios are made of 14 to 17 Ucits or Alternative Ucits funds (according to profile).
- Two currency based portfolios ; in US dollar or in Euro.
- Apart one fund with a bi-monthly liquidity, all funds have a daily liquidity.
- Usually we select identical funds either for US dollar or Euro based portfolios, but keeping currency exposure hedge for fixed income funds.
- The performances are shown net of fees, calculated from the cheapest share classes, hence making our Model Portfolios fully replicable.
Strategic Allocations
We keep a constant balance between equity and fixed income strategies according to Model Portfolio profiles and guidelines. We also maintain a neutral currency and regional allocation compare to benchmarks.
The portfolio outperformance should mainly arise from the alpha generated by active management, and to a certain extent to a diversification optimisation. Tactical bets such as investment style (value, growth defensive), sector allocation (e.g., commodities, real estate), interest rate or spread duration may also contribute, time to time, to the value added generation.
A conservative portfolio with a 1/3 equity and 2/3 fixed income allocation.
Within the equity universe we tend to favour yielding strategies rather than pure price appreciation funds.
The objective is to outperform over time a benchmark composed by 1/3 of the MSCI All Country World Index, and by 2/3 of the Barclays Global Aggregate Bond Index.
The portfolio aims to outperform a benchmark made of 50% MSCI All Country World Index, and 50% Barclays Global Aggregate Bond Index in a risk-adjusted return basis and with a capital preservation mindset.
For that reason, we maintain around 33% of the portfolio allocation into Absolute Return strategies, including Alternative Ucits funds.
The most equity oriented portfolio with the aim to beat a benchmark composed by 2/3 of the MSCI All Country World Index and 1/3 of the Barclays Global Aggregate Bond Index. Growth of capital through capital appreciation is the main long term portfolio objective.
Market Review and Outlook
Market Review – First Quarter 2022
After an exceptional 2021, the first quarter of 2022 has been difficult for markets. Concerns over the economic implications of the Russian invasion of Ukraine and the potential need for a faster pace of interest rate hikes to combat higher inflation weighed on both equities and bonds.
Developed market equities recovered some of their losses to end March up about 3% but were still down 5% YTD. Emerging markets lost a further 2% in March leaving them down nearly 7% YTD. A new round of Omicron cases in China weighed on Chinese markets on top of the broader geopolitical concerns.
Over the quarter, developed market value stocks were only down 0.5% while growth stocks fell nearly 10%. This was partly due to the fact that 10-year Treasury yields reached 2.4%, up from only 1.5% at the start of the year after the Fed delivered its first rate hike since 2018. The Global Aggregate Bond Index fell 6.2% over the quarter.
Expectations for faster monetary tightening in the US also contributed to a rally in the dollar, which finished the quarter up about 3% against both the pound and the euro.
The narrative that inflation was transitory began to change at the beginning of the year and over the quarter central banks became gradually more hawkish, driving bond yields higher. The start of the war between Russia and Ukraine and the resulting commodity supply shock poses a dilemma for central banks who are forced to choose between trying to tame inflation or support growth. Central banks have so far suggested that they view inflation as the more pressing problem to tackle unless the growth outlook markedly deteriorates.
Final February euro area inflation was revised up to 5.9% and inflation in the UK accelerated to 6.2%. In the US, inflation reached a 40-year high of 7.9% and is expected to remain elevated over the coming quarters.
The Fed raised the target rate by 0.25%, as expected, making it clear that further increases will be appropriate. The median voting member now expects seven hikes this year, and four next year, signalling that rate could end this hiking cycle higher than the committee’s perceived neutral rate of 2.4%. The committee plans to reduce the size of its now $9.0 trillion balance sheet, which could be announced very soon.
Outlook
During the quarter we rebalanced our equity funds, by removing the most aggressive growth strategies and by adding blend or value strategies. At this stage, our style exposure is neutral. Due to the geopolitical situation, commodities are the best tactical hedge. We currently don’t have implemented such a move, but it is something we could consider, according to valuations.
We remain slightly overweight in small caps and in EM equities. On the fixed-income side, we are interest rate duration underweight, spread duration overweight. We also have built exposure to uncorrelated fixed income strategies, such as absolute return, microfinance, and cat bonds.
Performance Review – March 2022
Yield & Income Portfolio (in USD) -0.2% (+ 57bps vs. the benchmark)
Balanced portfolio (in USD) -0.2% (-19bps)
Growth portfolio (in USD) +0.2% (-54bps)
Our overall positioning had mixed results in March. While the short duration was the main contributing factor, our overweight in EM was again lagging. On the fixed income side, we were pleased with the alternative strategies (cat bonds, microfinance) which are the only FI funds in positive territory YTD. Credit strategies (High Yield and EM) did also well in relative terms in March.
In equities, active management generated alpha (+12bps in the Growth portfolio), while the exposure into the infrastructure thematic (+7.1% in March) was also a positive contributor.
The Absolute Return strategies had negative impact on performance of the Balanced portfolio. Long/Short equities were down as well as the asset allocation funds.
US Dollar Portfolios
USD - Yield and Income
Cumulative Performance to end March 2022
Calendar Returns
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2022 | -3.31% | -2.29% | -0.23% | 5.04% | |||||||||
| Benchmark | -2.68% | -1.78% | -0.80% | 4.90% | ||||||||||
| Portfolio | 2021 | 0.20% | 0.67% | -0.24% | 2.24% | 0.81% | 0.64% | 0.46% | 1.11% | -1.94% | 1.32% | -1.97% | 1.70% | 5.04% |
| Benchmark | -0.51% | -0.28% | 0.62% | 1.62% | 0.66% | 0.76% | 1.05% | 0.69% | -2.01% | 1.52% | -0.33% | 1.06% | 4.90% | |
| Portfolio | 2020 | 0.19% | -2.47% | -10.45% | 6.50% | 4.71% | 2.76% | 3.30% | 2.59% | -1.03% | -0.48% | 5.95% | 2.77% | 13.96% |
| Benchmark | 0.81% | -1.89% | -5.60% | 4.64% | 1.62% | 1.37% | 2.46% | 1.45% | -0.80% | -0.83% | 4.49% | 1.73% | 9.40% | |
| Portfolio | 2019 | 4.59% | 1.67% | 0.63% | 1.97% | -2.39% | 2.91% | 0.90% | -1.11% | 0.95% | 1.69% | 1.37% | 2.17% | 16.26% |
| Benchmark | 3.39% | 0.96% | 1.58% | 1.16% | -1.02% | 3.11% | 0.61% | 0.71% | 0.37% | 0.79% | 0.72% | 1.01% | 14.14% | |
| Portfolio | 2018 | 2.88% | -1.91% | -0.66% | 0.76% | -0.63% | -0.50% | 1.50% | -0.20% | 0.71% | -3.54% | -0.22% | -2.48% | -4.36% |
| Benchmark | 1.42% | -1.55% | -0.21% | 0.07% | 0.26% | -0.04% | 1.00% | 0.42% | -0.12% | -2.63% | 0.80% | -1.48% | -2.12% | |
| Portfolio | 2017 | 2.15% | 1.58% | 0.72% | 1.01% | 1.27% | 0.19% | 1.55% | 0.03% | 0.58% | 1.05% | 0.61% | 1.07% | 12.45% |
| Benchmark | 0.68% | 1.49% | 0.35% | 0.95% | 1.10% | -0.06% | 1.13% | 0.71% | 0.32% | 0.95% | 0.73% | 0.63% | 9.36% | |
| Portfolio | 2016 | 1.16% | 2.25% | 1.04% | 0.86% | -0.43% | -1.25% | 1.25% | 4.93% | |||||
| Benchmark | 1.04% | 1.81% | 0.06% | 0.17% | -1.23% | -0.86% | 0.84% | 1.81% |
Benchmark: 1/3 iShares MSCI All Country World ETF (EUR) + 2/3 X II Barclays Gbl Agg ETF H EUR
Source: WS Partners, Morningstar
USD - Balanced
Cumulative Performance to end March 2022
Calendar Returns
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2022 | -3.47% | -1.56% | -0.21% | 6.59% | |||||||||
| Benchmark | -3.22% | -1.99% | -0.02% | 8.25% | ||||||||||
| Portfolio | 2021 | 0.61% | 1.39% | -0.24% | 1.99% | 0.82% | 0.76% | 0.47% | 0.95% | -1.93% | 1.25% | -1.57% | 1.99% | 6.59% |
| Benchmark | -0.49% | 0.37% | 1.14% | 2.31% | 0.88% | 0.90% | 0.96% | 1.15% | -2.54% | 2.43% | -0.85% | 1.80% | 8.25% | |
| Portfolio | 2020 | -0.68% | -2.98% | -8.44% | 5.95% | 3.34% | 2.14% | 3.08% | 2.52% | -0.96% | -0.17% | 6.33% | 3.04% | 12.93% |
| Benchmark | 0.33% | -3.43% | -7.62% | 6.15% | 2.29% | 1.82% | 3.15% | 2.60% | -1.43% | -1.24% | 6.47% | 2.45% | 11.20% | |
| Portfolio | 2019 | 4.01% | 1.50% | 0.36% | 1.64% | -2.65% | 2.65% | 0.92% | -1.37% | 1.24% | 1.94% | 1.43% | 1.99% | 14.36% |
| Benchmark | 4.50% | 1.38% | 1.48% | 1.71% | -2.24% | 3.97% | 0.54% | -0.06% | 0.80% | 1.28% | 1.15% | 1.63% | 17.18% | |
| Portfolio | 2018 | 2.75% | -1.59% | -0.42% | 0.82% | -0.97% | -0.54% | 1.49% | -0.32% | 0.78% | -3.58% | -0.07% | -2.11% | -3.84% |
| Benchmark | 2.47% | -2.21% | -0.73% | 0.31% | 0.22% | -0.15% | 1.50% | 0.48% | 0.02% | -3.84% | 0.96% | -2.88% | -3.96% | |
| Portfolio | 2017 | 1.85% | 1.21% | 0.74% | 0.84% | 0.87% | 0.64% | 1.73% | 0.04% | 1.19% | 1.03% | 0.93% | 0.66% | 12.35% |
| Benchmark | 1.19% | 1.82% | 0.56% | 1.10% | 1.37% | 0.07% | 1.54% | 0.63% | 0.72% | 1.23% | 1.02% | 0.88% | 12.82% | |
| Portfolio | 2016 | 0.01% | 2.83% | 0.94% | 0.65% | -0.55% | 0.36% | 1.59% | 5.93% | |||||
| Benchmark | 0.62% | 2.43% | 0.12% | 0.28% | -1.35% | -0.46% | 1.17% | 2.81% |
Benchmark: 1/2 iShares MSCI All Country World ETF (USD) + 1/2 X II Barclays Gbl Agg ETF H USD
Source: WS Partners, Morningstar
USD - Growth
Cumulative Performance to end March 2022
Calendar Returns
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2022 | -5.28% | -1.80% | 0.21% | 6.68% | |||||||||
| Benchmark | -3.77% | -2.21% | 0.75% | 11.67% | ||||||||||
| Portfolio | 2021 | 0.55% | 1.37% | -0.56% | 2.80% | 0.62% | 0.94% | 0.34% | 1.59% | -2.47% | 2.50% | -2.66% | 1.60% | 6.68% |
| Benchmark | -0.47% | 1.01% | 1.65% | 3.00% | 1.11% | 1.04% | 0.88% | 1.61% | -3.06% | 3.33% | -1.36% | 2.54% | 11.67% | |
| Portfolio | 2020 | -0.68% | -4.30% | -9.68% | 8.05% | 3.42% | 2.83% | 4.24% | 3.53% | -1.30% | -0.43% | 8.50% | 3.72% | 17.74% |
| Benchmark | -0.16% | -4.98% | -9.63% | 7.67% | 2.96% | 2.26% | 3.84% | 3.75% | -2.06% | -1.65% | 8.44% | 3.17% | 12.84% | |
| Portfolio | 2019 | 6.20% | 2.06% | 0.71% | 2.39% | -4.35% | 4.44% | 0.61% | -2.00% | 0.95% | 2.30% | 2.02% | 2.51% | 18.89% |
| Benchmark | 5.61% | 1.81% | 1.38% | 2.27% | -3.47% | 4.83% | 0.46% | -0.83% | 1.23% | 1.77% | 1.57% | 2.25% | 20.23% | |
| Portfolio | 2018 | 3.65% | -2.87% | -1.07% | 0.82% | -0.44% | -1.19% | 1.66% | 0.54% | 0.00% | -6.66% | 0.64% | -4.12% | -9.06% |
| Benchmark | 3.53% | -2.87% | -1.24% | 0.54% | 0.17% | -0.26% | 2.00% | 0.55% | 0.16% | -5.05% | 1.13% | -4.28% | -5.81% | |
| Portfolio | 2017 | 2.83% | 1.52% | 1.28% | 1.65% | 1.88% | 0.46% | 2.48% | -0.28% | 1.77% | 1.50% | 1.22% | 1.64% | 19.45% |
| Benchmark | 1.70% | 2.14% | 0.78% | 1.25% | 1.65% | 0.19% | 1.95% | 0.54% | 1.12% | 1.51% | 1.32% | 1.12% | 16.37% | |
| Portfolio | 2016 | -1.01% | 4.18% | 1.46% | 1.17% | -1.04% | 0.28% | 1.33% | 6.44% | |||||
| Benchmark | 0.21% | 3.05% | 0.19% | 0.39% | -1.47% | -0.06% | 1.50% | 3.80% |
Benchmark: 2/3 iShares MSCI All Country World ETF (EUR) + 1/3 X II Barclays Gbl Agg ETF H EUR
Source: WS Partners, Morningstar
Euro Portfolios
Euro - Yield and Income
Cumulative Performance to end March 2022
Calendar Returns
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2022 | -2.91% | -2.20% | -0.16% | -5.19% | |||||||||
| Benchmark | -2.28% | -1.88% | -0.61% | -4.70% | ||||||||||
| Portfolio | 2021 | 0.50% | 0.82% | 0.91% | 1.16% | 0.24% | 1.57% | 0.44% | 1.22% | -1.16% | 1.34% | -1.04% | 1.37% | 7.57% |
| Benchmark | -0.33% | -0.29% | 1.68% | 0.75% | 0.09% | 1.77% | 1.01% | 0.81% | -1.47% | 1.54% | 0.56% | 0.61% | 6.90% | |
| Portfolio | 2020 | 0.53% | -2.09% | -10.15% | 6.30% | 3.67% | 2.35% | 1.21% | 2.25% | -0.37% | -0.38% | 4.70% | 1.75% | 9.15% |
| Benchmark | 1.13% | -1.73% | -5.70% | 4.62% | 1.04% | 1.00% | 0.61% | 1.02% | -0.20% | -0.66% | 3.46% | 0.87% | 5.22% | |
| Portfolio | 2019 | 4.15% | 1.82% | 1.00% | 1.86% | -2.37% | 1.85% | 1.52% | -0.82% | 1.13% | 0.67% | 1.75% | 1.25% | 14.54% |
| Benchmark | 3.06% | 1.06% | 1.89% | 1.05% | -1.02% | 2.15% | 1.22% | 0.92% | 0.56% | -0.15% | 1.00% | 0.23% | 12.58% | |
| Portfolio | 2018 | 1.46% | -1.36% | -1.10% | 1.26% | 0.42% | -0.66% | 1.26% | -0.03% | 0.64% | -2.96% | -0.39% | -2.99% | -4.49% |
| Benchmark | 0.04% | -0.99% | -0.65% | 0.53% | 1.28% | -0.21% | 0.78% | 0.45% | -0.21% | -2.02% | 0.66% | -1.98% | -2.37% | |
| Portfolio | 2017 | 1.24% | 2.08% | 0.35% | 0.20% | 0.10% | -0.38% | 0.23% | -0.41% | 0.61% | 1.46% | -0.20% | 0.56% | 5.97% |
| Benchmark | -0.24% | 2.01% | 0.03% | 0.26% | -0.09% | -0.64% | -0.11% | 0.31% | 0.41% | 1.35% | -0.17% | 0.26% | 3.39% | |
| Portfolio | 2016 | 1.12% | 2.05% | 1.00% | 0.53% | 0.20% | -0.23% | 1.34% | 6.16% | |||||
| Benchmark | 1.03% | 1.51% | 0.11% | -0.22% | -0.52% | 0.14% | 0.92% | 3.00% |
Benchmark: 1/3 iShares MSCI All Country World ETF (EUR) + 2/3 X II Barclays Gbl Agg ETF H EUR
Source: WS Partners, Morningstar
Euro - Balanced
Cumulative Performance to end March 2022
Calendar Returns
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2022 | -3.08% | -1.67% | -0.12% | -4.81% | |||||||||
| Benchmark | -2.58% | -2.12% | 0.36% | -4.30% | ||||||||||
| Portfolio | 2021 | 0.84% | 1.41% | 0.73% | 1.03% | 0.35% | 1.67% | 0.41% | 1.08% | -1.33% | 1.17% | -0.78% | 1.75% | 8.60% |
| Benchmark | -0.18% | 0.38% | 2.77% | 1.04% | 0.07% | 2.44% | 0.94% | 1.35% | -1.69% | 2.47% | 0.51% | 1.20% | 11.83% | |
| Portfolio | 2020 | 0.13% | -2.66% | -8.37% | 5.87% | 2.62% | 1.74% | 1.18% | 2.14% | -0.39% | -0.06% | 5.39% | 2.17% | 9.37% |
| Benchmark | 0.88% | -3.11% | -7.66% | 6.19% | 1.46% | 1.29% | 0.45% | 1.98% | -0.50% | -0.95% | 4.95% | 1.22% | 5.63% | |
| Portfolio | 2019 | 3.70% | 1.71% | 0.86% | 1.56% | -2.56% | 1.43% | 1.56% | -1.09% | 1.43% | 0.91% | 1.80% | 1.08% | 12.98% |
| Benchmark | 4.15% | 1.66% | 2.07% | 1.69% | -2.11% | 2.68% | 1.56% | 0.37% | 1.20% | -0.01% | 1.66% | 0.59% | 16.49% | |
| Portfolio | 2018 | 1.08% | -0.82% | -0.93% | 1.60% | 0.42% | -0.67% | 1.30% | -0.19% | 0.71% | -2.76% | -0.21% | -2.66% | -3.17% |
| Benchmark | 0.48% | -1.28% | -1.26% | 1.10% | 1.86% | -0.28% | 1.28% | 0.65% | -0.01% | -2.80% | 0.88% | -3.48% | -2.97% | |
| Portfolio | 2017 | 0.67% | 1.98% | 0.39% | -0.11% | -0.71% | -0.09% | 0.02% | -0.47% | 1.34% | 1.57% | -0.12% | 0.19% | 4.72% |
| Benchmark | -0.12% | 2.65% | 0.16% | 0.13% | -0.33% | -0.72% | -0.22% | 0.12% | 0.93% | 1.91% | -0.23% | 0.41% | 4.72% | |
| Portfolio | 2016 | 0.25% | 2.48% | 1.02% | 0.24% | 0.35% | 1.68% | 1.74% | 8.00% | |||||
| Benchmark | 0.67% | 2.03% | 0.27% | -0.24% | -0.20% | 1.13% | 1.38% | 5.13% |
Benchmark: 1/2 iShares MSCI All Country World ETF (EUR) + 1/2 X II Barclays Gbl Agg ETF H EUR
Source: WS Partners, Morningstar
Euro - Growth
Cumulative Performance to end March 2022
Calendar Returns
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2022 | -4.44% | -1.97% | 0.55% | -5.81% | |||||||||
| Benchmark | -2.88% | -2.36% | 1.33% | -3.91% | ||||||||||
| Portfolio | 2021 | 1.06% | 1.44% | 1.41% | 1.03% | -0.23% | 2.81% | 0.30% | 1.90% | -1.24% | 2.42% | -1.02% | 1.20% | 11.57% |
| Benchmark | -0.02% | 1.05% | 3.86% | 1.32% | 0.05% | 3.11% | 0.86% | 1.90% | -1.90% | 3.41% | 0.46% | 1.79% | 16.94% | |
| Portfolio | 2020 | 0.07% | -3.39% | -8.86% | 7.92% | 2.08% | 2.18% | 0.65% | 2.86% | -0.13% | -0.14% | 6.55% | 2.18% | 11.49% |
| Benchmark | 0.63% | -4.49% | -9.63% | 7.76% | 1.88% | 1.58% | 0.28% | 2.94% | -0.80% | -1.24% | 6.45% | 1.57% | 5.91% | |
| Portfolio | 2019 | 5.86% | 2.49% | 1.58% | 2.40% | -4.08% | 2.86% | 1.94% | -1.50% | 1.46% | 0.72% | 2.68% | 1.14% | 18.65% |
| Benchmark | 5.24% | 2.25% | 2.25% | 2.32% | -3.20% | 3.21% | 1.90% | -0.19% | 1.84% | 0.12% | 2.32% | 0.94% | 20.48% | |
| Portfolio | 2018 | 1.10% | -1.62% | -1.70% | 1.97% | 1.78% | -1.28% | 1.39% | 0.87% | 0.07% | -5.27% | 0.55% | -4.81% | -7.06% |
| Benchmark | 0.93% | -1.56% | -1.86% | 1.67% | 2.43% | -0.35% | 1.78% | 0.85% | 0.20% | -3.58% | 1.10% | -4.97% | -3.61% | |
| Portfolio | 2017 | 1.24% | 2.58% | 0.76% | 0.29% | -0.22% | -0.54% | 0.21% | -0.93% | 2.03% | 2.43% | -0.28% | 0.98% | 8.82% |
| Benchmark | 0.00% | 3.28% | 0.29% | 0.00% | -0.56% | -0.81% | -0.34% | -0.08% | 1.45% | 2.46% | -0.29% | 0.57% | 6.05% | |
| Portfolio | 2016 | -0.95% | 3.88% | 1.55% | 0.66% | 0.46% | 2.35% | 1.69% | 9.98% | |||||
| Benchmark | 0.31% | 2.56% | 0.42% | -0.26% | 0.12% | 2.13% | 1.83% | 7.28% |
Benchmark: 2/3 iShares MSCI All Country World ETF (EUR) + 1/3 X II Barclays Gbl Agg ETF H EUR
Source: WS Partners, Morningstar