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.
Legal Structure: SICAV Ucits V
Fund Manager: SWM SA
Custodian: State Street, LUX
Reference Currency: EUR
AuM: EUR 17.22 M
NAV Frequency: Daily
Registered in: LUX, CH, IT
Management Fee: 2%
Performance Fee: 20% HWM
NAV as at 30.11.2020: EUR 97.92
ISIN: EUR (A): LU0451080401
Share Type: Accumulation
Targeting investors with a superior risk tolerance who expect capital growth over the business cycle, investing primarily in global equites.
Fund manager insights
During November 2020 the Explorer Equity Fund was up 2.87%, while in the same period the MSCI World Index hedged in EUR gained 11.73%. Geographically November was very positive month for all equity indices, especially for those with more exposure in “Value” stocks such as the European Stoxx600 Index and the Japanese Nikkei Index. China and the Emerging Markets in general provided good performances as well, but less than Europe and Japan. November was a month strongly influenced by two important news that occurred at the beginning of the month: Biden’s victory in the US presidential election
and the discovery of several vaccines against the Coronavirus. From a sector point of view, during November “Growth” stocks still underperformed “Value” equities reflecting the fact that the news about the vaccines could lead to a “normalization” in the incoming months in terms of consumers’ habits and therefore a return of interest in “old economy” equities is reasonable. Nevertheless, macroeconomic data is still saying the whole world is expected to face an extended recession with an unemployment rate stable at high levels, low consumer confidence and a significant reduction in corporate profits, which we
still estimate could be around 30%. Considering the above we preferred to keep a very conservative asset allocation and we keep thinking that the equity markets are too optimistic about the near future. The portfolio is geographically overweighed in US, Europe, Switzerland and Asia. Considering the sectors, the fund is exposed for more than 40% of the AUM to consumer non cyclical, technology and communication equities. The fund is still strongly hedged with index futures and has a net exposure to equities around 50% even if we want to gradually raise it to at least 80% by the end of the year.