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 March, the fund recorded another drawdown of 0.45%, taking the YTD return down to -1.01%.
After their first severe correction since summer 2017, equity markets did not manage to recoup in March their losses generated the previous month. The persisting turmoil in the U.S. tech sector and the protectionist stance suddenly taken by the White House did not help restoring investors confidence, creating new sources of concerns for future corporate earnings. Every attempt made by equity markets to rebound did fail and the U.S. market lows hit early February were tested several times again in March. Despite this unstable market configuration, equity volatilities did not experience a similar spike than in February. The VIX and V2X kept trading around 20, indicating that there was no panic sell-off at this stage. The main reason for this resilience comes from the solid fundamental background prevailing in DM and EM countries. Early March, the U.S. macro indicators once again showed a strong domestic activity with accelerating job creations. Similarly, EM Asia delivered solid macro data leading to upward revisions of their Q1 GDP forecasts. By contrast, the EZ macro data did soften somehow in mid-Q1, but leading indicators remain at a high level and the Italian elections did not result in political chaos in the area. In the meantime, inflationary pressures remain modest, allowing long-bond yields to make a pause in their rising trend and softening the pressure on equity valuations.
Since mid-February, the risk exposure has been gradually increased in the fund through short-volatility positions on DM equity indices and crude oil. These positions were opened every time the U.S. equity market hit his February lows. Meanwhile, no new equity directional positions were opened, awaiting the support from the April earnings season.

YTD

  • Cumulated Performance
  • Share class A

As of 09/05/2018

3 months

  • Cumulated Performance
  • Share class A

As of 09/05/2018

1 year

  • Cumulated Performance
  • Share class A

As of 09/05/2018

3 years

  • Cumulated Performance
  • Share class A

As of 09/05/2018

All

  • Cumulated Performance
  • Share class A

As of 09/05/2018

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