The fund aims to provide capital growth by investing in worldwide equities without geographical or sector limits. The fund invests more than 51% of its assets in equities or equity-related securities. The fund seeks to generate a positive return during rising equity markets passing to a defensive approach during extended bearish trends. The fund may use derivatives in order to achieve investment gains, reduce risk or manage the fund more efficiently.
General Data
Domicile: Luxembourg
Legal Structure: SICAV Ucits V
Fund Manager: SWM SA
Custodian: State Street, LUX
Reference Currency: EUR
AuM: EUR 17.14 M
NAV Frequency: Daily
Registered in: LUX, CH, IT
Management Fee: 2%
Performance Fee: 20% HWM
NAV as at 31.08.2022: EUR 105.91
ISIN: EUR (A): LU0451080401
Share Type: Accumulation
Investor’s profile
Targeting investors with a superior risk tolerance who expect capital growth over the business cycle, investing primarily in global equites.
Fund manager insights
During August 2022 the Explorer Equity Fund generated a negative return of -1.98%, while in the same period the MSCI All Country World lost -3.86%. Equities sold off in the second half of August. Poor economic data and the FED reasserting that the monetary policy will be tighter for longer were the catalysts for the move downward. Rising interest rates pushed the dollar to its highest level in 20 years. Despite headline inflation easing to 8.5% (y/y) in July, Mr. Powel reiterated the Fed’s objective: restoring price stability. Consequentially, markets have priced-in another 75bps hike in September. In Europe gas and power prices spiked sharply in the face of tight electricity markets and further reduced Russian gas supplies. An increasingly hawkish ECB has signalled that a steeper path of hiking may be necessary. Emerging markets proved to be a diversifier this month. Chinese equities were supported by the People’s Bank of China decision to cut its medium-term lending facility interest rate. Speaking about performances, the Explorer Equity Fund during August increased the alpha generated against the MSCI ACWI.
At the end of the month, the alpha was around 10.9%. For the next weeks, considering that we believe inflation will remain high and that central banks or politics do not have great possibilities to counter it, we’ll keep a conservative attitude: we in fact believe that it is not the time to be aggressive because equity markets may generate lower lows in 2022 and that they could face a prolonged trading range or a downside period before starting a new bullish phase.