Global Allocation / Total Return

7% p.a., net of fees

Daily

Luxembourg-regulated AIF

Beauclerc Limited

14 December 2011

27 May 2014

MS Management Services SA

Manager comment

In April, the fund recorded another positive performance of +0.73%, taking the year-to-date performance up to +3.91%.
The momentum in risky assets gained more traction in April, with both equities and credit posting strong returns, as the new Goldilocks configuration boosted investors’ confidence. Although the macro news-flow showed signs of US domestic softening, another strong job report ended the risk of a recession in 2019. At the same time, the Fed confirmed its new neutral guidance and removed the probability of a new rate hike before 2020. On top of these accommodative monetary conditions, Q1 2019 corporate earnings were released globally above expectations, although much weaker than in 2018, which resulted in lifting the S&P 500 back to its 2018-peak. Meanwhile, concerns remained in Asia where the manufacturing sector failed to recover significantly despite the supportive measures in China last winter. Also, the level of US corporate debt exceeded previous historical peak reached in 2008, while the number of rating downgrades started to outpace the upgrades in the HY segment, concerning trend that proved to be the real motivation behind the Fed’s neutral shift in guidance, while the macro momentum was still pretty solid. Finally, US/China trade negotiations remained a source of risk as investors were already positioned for a favourable outcome. Equity volatility reached another historical low, confirming investors’ complacency unable to reflect the level of risks prevailing in financial markets.
The reduction in the fund’s equity allocation continued late April, with 50% cut in the EM equity position, following the disposal of EZ banks in March. Large holdings in short-volatility positions were rolled over and HY/EM bonds were maintained. The strategy was to wait for an eventual risk-off event to add more risk through short-volatility positions.

YTD

  • Cumulated Performance
  • Share class A

As of 28/06/2019

3 months

  • Cumulated Performance
  • Share class A

As of 28/06/2019

1 year

  • Cumulated Performance
  • Share class A

As of 28/06/2019

3 years

  • Cumulated Performance
  • Share class A

As of 28/06/2019

All

  • Cumulated Performance
  • Share class A

As of 28/06/2019

Download Monthly Fund Reports