CB Accent Lux – Explorer Equity – Eur

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.

Investor’s profile

Targeting investors with a superior risk tolerance who expect capital growth over the business cycle, investing primarily in global equites.

Factsheet: CB Accent Lux – December Explorer Equity

Fund manager insights

During December 2022 the Explorer Equity Fund generated a negative return of -4.06% bringing its YTD return to -9.95%. Most equity markets gave back a part of their recent gains as central banks seemed to signal that they would accept causing a recession in 2023 as the price for cooling inflation. In US stocks fell sharply but most sectors outperformed the index as a whole, which was dragged down by the heavily weighted consumer discretionary, information technology, and communication services segments. In Europe shares fell sharply in December on renewed worries about rising interest rates and a looming economic slowdown. The ECB raised its deposit rate by 50bps to 2%, with a hawkish Lagarde announcing a balance sheet run-off from March 2023 onwards. In Japan the BoJ surprised markets in the latter half of the month by announcing that it would modify its policy of yield curve control, allowing 10-year Japanese government bond yields to rise as high as 0.50%. Emerging markets outperformed, helped by new stimulus measures in China and the country’s abandonment of strict COVID restrictions. Speaking about performances, the Explorer Equity Fund alpha generated against the MSCI ACWI in 2022 is around 9.85%. For the next weeks, we will maintain the same attitude of December. We believe we are in a transition phase where the global equity market has room to grow further. Many problems remain and still need effective solutions, but there may be an easing of investor concerns.