It's time to be an active manager again
After more than a decade of benefiting from historically low interest rates and the resulting surge in asset prices, we're faced with the looming question: What happens if the unthinkable occurs? The landscape of investment options has shifted significantly, with alternatives to traditional market ETFs emerging, making it increasingly challenging to generate returns. As moderate inflation returns, we transition from a period of structural deflation to a more reflationary environment. With interest rates remaining relatively elevated compared to the past decade, the price paid for assets becomes a critical consideration. What may have proven successful as an investment strategy over the last decade may no longer be viable for the next.
As we move towards more normalized economic cycles, accompanied by a resurgence of animal spirits, we find ourselves on the brink of an economic boom. In light of these changes, wouldn't it be prudent to consider active management with a rigorous yet flexible approach to valuation, poised to capitalize on the growth potential of the real economy? Remember, there's always an alternative – choose Alpha over Beta!
Combination of fundamental analysis with entrepreneurial tilt
Employing a strategic approach, we meticulously search for specific catalysts to propel share prices upwards, guided by a common-sense perspective. With a deliberate deviation from traditional core holdings, our focus lies solely on vehicles poised to yield returns. We adhere to a disciplined selling strategy, parting with holdings as they approach fair value or when superior opportunities arise.
Our investment philosophy is rooted in thorough bottom-up stock picking, devoid of geographical or sectoral constraints, and devoid of any dogmatic style biases.
Our commitment to conviction is evident, with over 90% of our fund invested in companies outside the MSCI world index, reflecting our unwavering confidence in unique opportunities. Adopting a private equity lens, we scrutinize companies with precision, fostering strategic investments in entities such as BT Group, Shell, CNP Assurances, Vodafone, Western Digital, and Liberty Media, among others, enhancing our portfolio's potential for growth and value creation.
How we see the market
Despite the dire predictions often aired on financial television channels, the broader economic landscape seems to defy recessionary concerns.
Although interest rates are anticipated to sustain a higher trajectory compared to recent years, consumers appear largely unfazed. This resilience is bolstered by robust economic growth, particularly within the services sector, driven by increasing wages.Inflation persists stubbornly above the targets set by central banks. However, their ability to further raise rates is constrained, particularly in the United States, where the weight of national debt looms large.
A notable trend emerges as economies reap the rewards of consumers upgrading their lifestyles to align with their improved financial standing. Meanwhile, financial markets continue to experience heightened volatility as investors grapple with the aftermath of the era of easy monetary policy. In a significant paradigm shift, investors are beginning to acknowledge the potential for world economies to not only endure but thrive amidst the backdrop of higher rates and inflation.
In this evolving investment landscape, the importance of selecting the right individual companies for investment is emphasized, overshadowing the traditional focus on index tracking.
Numbers and Information
Fund Manager: Peter Ahluwalia
Investment Manager: MRB Fund Partners AG, Zurich
Custodian Bank: Bank Pictet & Cie (Europe) S.A., Luxembourg
Administrator: Fund Partner Solutions (Europe) S.A., Luxembourg
Auditor: Grant Thornton Lux Audit S.A., Luxembourg
Legal Status: Luxembourg SICAV with UCITS V Status
Fund Dealing: Daily
Dealing cut off: 15:00 CET
Fund Launch: 4 April 2016
Base Currency: USD
Available Currencies: USD, EUR, CHF
Minimum Investment: n.a.
Eligible Investors: Retail Investors
End of Fiscal Year: 31 December
Dividend Distribution: accumulating
Issue Commission / Entrance Fee:n.a.
Management Fee:1%
Performance Fee: 10%
Fund Codes
Bloomberg
BELIEAU.LX (USD-Class)
BELIEAE.LX (EUR-Class)
BELIEAC.LX (CHF-Class)
ISIN
LU1265904661 (USD-Class)
LU1265906799 (EUR- Class)
LU1265911955 (CHF- Class)
Fund Distribution
The SICAV has been authorised in Switzerland as a foreign investment fund. The representative in Switzerland is FundPartner Solutions (Suisse) SA (the"Representative"), 60, route des Acacias, CH-1211 Geneva 73, Switzerland. The paying agent in Switzerland is Banque Pictet & Cie SA, with its registered office in 60, route des Acacias, CH-1211 Geneva 73, Switzerland.The prospectus and the key investor information documents of the subfunds distributed in Switzerland, the articles of incorporation and the annual and semi-annual reports are available free of charge from the Representative. The list of purchases and sales that have taken place during the period under review is available free of charge on request to the Representative in Switzerland.
Publication Media
www.fundsquare.net
Morningstar
“Over 50% of the world’s population is under 30. In the US generations Y and Z will be larger than the baby boomers. All of these people will need stuff. Do you really think inflation is coming down soon?”
