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 – May 2022
Markets ended the month broadly flat but there was significant intra-month volatility. The key macro risks of war in Ukraine, tightening monetary policy and Covid restrictions in China remain, and markets lacked a clear catalyst for a change in sentiment.
After a painful April, investors gained some respite with the MSCI All Country World rising by 0.2% in May. This was complimented by positive global bond returns of 0.3%. Value stocks were the best performing asset class returning 2.2% over the month.
Commodities continued to perform well returning 1.5% over the month with oil and wheat prices continuing to rise. Growth stocks continued to struggle off the back of valuation compression and several high-profile earnings warnings. Real estate was the worst performing asset class as leading indicators suggested the US and UK housing markets are starting to slow.
In Europe, consumer confidence, while still low, improved in May and business surveys were resilient. This should give the European Central Bank more confidence in raising rates in the face of inflation at 8.1% y/y. President Lagarde clarified the bank’s position indicating a first rate hike was likely in July, along with an end to asset purchases early in Q3 2022 and an exit of negative rates by the end of Q3 2022.
In the US, the FED increased rates by 50bps in May. Having been pre-warned in April, this hike was in line with market expectations and so did not prompt a jump in US yields. The market is now pricing another two sequential 50bps hikes in June and July. Excluding a deterioration in the outlook it is likely the Fed will deliver these.
Outlook
We made no changes during the month. We remain slightly overweight in small caps and in EM equities.
On the fixed income side, we are interest rate duration underweight and spread duration overweight. We did not add to duration given the volatility but concede that levels are becoming attractive once again given the overall outlook.
We also have built exposure to uncorrelated fixed income strategies, such as absolute return, microfinance, and cat bonds.
The rules we have set out for this Portfolio Models are that we are always 100% invested and that the allocation between the asset classes remain unchanged over time.
Performance Review – May 2022
Yield & Income Portfolio (in USD) -0.5% (-40bps vs. the benchmark)
Balanced portfolio (in USD) -0.9% (-84bps)
Growth portfolio (in USD) -0.8% (-78bps)
Spread widened significantly in low quality corporates, particularly in floating rate notes such as loans. Those strategies helped since the beginning of the year due to their lack of rate sensitivity. In May however they accounted for -20bps in relative value.
Equity funds contributions were neutral. Value funds finished the month in positive territory while growth and quality strategies continued to lag. Active management in equity was slightly negative (-12bps for the Growth Portfolio).
Finally, absolute return strategies contributed negatively for the Balanced Portfolio. The risk premia suffered from the strong intra-month volatility.
US Dollar Portfolios
USD - Yield and Income
Cumulative Performance to end May 2022
Calendar Returns
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2022 | -3,31% | -2,29% | -0,23% | -3,86% | -0,48% | -9,81% | |||||||
| Benchmark | -2,68% | -1,78% | -0,80% | -4,67% | -0,08% | -9,66% | ||||||||
| 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 (USD) + 2/3 X II Barclays Gbl Agg ETF H USD
Source: WS Partners, Morningstar
USD - Balanced
Cumulative Performance to end May 2022
Calendar Returns
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2022 | -3,47% | -1,56% | -0,21% | -3,36% | -0,87% | -9,14% | |||||||
| Benchmark | -3,22% | -1,99% | -0,02% | -5,49% | -0,03% | -10,41% | ||||||||
| 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 May 2022
Calendar Returns
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2022 | -5,28% | -1,80% | 0,21% | -5,11% | -0,77% | -12,22% | |||||||
| Benchmark | -3,77% | -2,21% | 0,75% | -6,32% | 0,01% | -11,17% | ||||||||
| 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 (USD) + 1/3 X II Barclays Gbl Agg ETF H USD
Source: WS Partners, Morningstar
Euro Portfolios
Euro - Yield and Income
Cumulative Performance to end May 2022
Calendar Returns
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2022 | -2,91% | -2,20% | -0,16% | -2,12% | -1,10% | -8,22% | |||||||
| Benchmark | -2,28% | -1,88% | -0,61% | -3,10% | -0,67% | -8,27% | ||||||||
| 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 May 2022
Calendar Returns
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2022 | -3,08% | -1,67% | -0,12% | -1,83% | -1,46% | -7,90% | |||||||
| Benchmark | -2,58% | -2,12% | 0,36% | -3,06% | -0,86% | -8,02% | ||||||||
| 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 May 2022
Calendar Returns
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 2022 | -4,44% | -1,97% | 0,55% | -2,03% | -1,70% | -9,29% | |||||||
| Benchmark | -2,88% | -2,36% | 1,33% | -3,02% | -1,05% | -7,79% | ||||||||
| 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