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 17.25 M
NAV Frequency: Daily
Registered in: LUX, CH, IT
Management Fee: 2%
Performance Fee: 20% HWM
NAV as at 30.09.2020: EUR 97.33
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 September 2020 the Explorer Equity Fund was down 0.67%, while in the same period the MSCI World Index hedged in EUR lost 2.98%. Geographically the month was slightly negative for US indices, flat for Europe and a bit positive for Switzerland and Emerging Markets. From a sector point of view, during September the Growth stocks underperformed Value equities reflecting the fact that since the ratio between them reached extremely levels during the past 6 months, a return of interest in
“old economy” equities is reasonable. 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%. Furthermore, the problem of the Corona virus seems to be far from resolved: for example, considering the still high number of infections, what will it happen in the Western world at Christmas, the time of the year in which most of sales and consumption are concentrated? In addition to the above the US presidential elections are getting closer and closer with a total uncertainty about the winner. Considering the above we preferred to keep a very conservative asset allocation. The
portfolio is geographically overweighed in US, Switzerland and Asia. Considering the sectors, the fund is exposed for more than 50% of the AUM to consumer non-cyclical, technology, communication equities and thematic strategies. Furthermore, the portfolio is still strongly hedged with index futures with a net exposure to equities slightly below 40%.