banque de luxembourg bl global flexible

8/9/2019 Banque de Luxembourg Bl Global Flexible

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High Conviction InvestingHigh Conviction Investing


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- o a ex e s a a ance un :

with no specific predefined orientation (defensive, neutral, aggressive)

investing in equities, bonds and money-market products

in all geographical regions: Europe, United States, Asia, emerging markets


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- to deliver absolute returns

- with low volatility

- and preservation of capital over the medium to long term

BL-Global Flexible is not a capital guarantee fund and its NAV may declineover shorter periods of time

- o a ex e s t ere ore not appropr ate or nvestors w t aninvestment horizon of less than three years


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BL-Global Flexible's investment hiloso h is based on the followin rinci les:

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- In the long term, the financial markets reflect economic reality and businessesun amen a s

- However attem tin to forecast short-term fluctuations on the markets is a vain

exercise

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- The best wa to control risk is to bu with a hi h mar in of safet


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The weight given to the main asset classes in BL-Global Flexible depends on:

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- The valuation of the various asset classes

- Individual investment opportunities within each asset class

- BL-Global Flexible's structural investment themes


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The equity portion invests in quality companies.

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A quality company is defined as having the following characteristics:

- Low levels of debt

- Low capital intensity

- High profitability

BL-Global Flexible applies a free cash flow model to assess the value ofcompanies.

e port o o's equ ty we g t ng may e a uste us ng er vat ves.

The portfolio's structure is not dependent on a benchmark index; rather it is a

combination of individual investment opportunities.


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The bond portion of BL-Global Flexible invests mainly in government bondsdenominated in euros (the funds reference currency). Duration management is

mainly based on inflation expectations.

From time to time, the fund invests in bonds denominated in other currencies orcorporate bonds when attractive opportunities in terms of risk/return arise.


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Currency breakdown July 2010

before currency hedging after currency hedging


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Asset allocation July 2010

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24.5%

2%

Bonds

Equities(1)

83.5 as

(1) of which 42% is covered through the sale of futures


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Geographical breakdown of equity portfolio (07/2010)

Eurozone 21.0% 6.5%

United States 27.5% 8.0%

United Kingdom 11.5% 3.5%Japan 3.0% 3.0%

. .

Switzerland 5.0% 5.0%

Other 3.0% 3.0%


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Breakdown of bond portfolio (07/2010)

by issuer type by currency

9,0%

10,0%

9,0%

10,0%

4,0%

5,0%

6,0%7,0%

,

5,0%

6,0%

7,0%

8,0%

0,0%

1,0%

2,0%

3,0%

0 0%

1,0%

2,0%

3,0%

,

supranationaux

Government Bonds/Supranationals

EUR BRL AutresCorporate Bonds

Others


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Performance of S&P 500 and equity weighting in BL-Global Flexible


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10-year yield(1) and bond weighting in BL-Global Flexible

(1) German government bond


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* BLGlobalFlexible capitalisationshares


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Guy WAGNER

Chief Economist / Fund Manager

Tel.: (+352) 26 26 99 - 3317E-mail: [email protected]

Banque de Luxembourg Fund Research & Asset Management

7, Boulevard Prince Henri - L-1724 Luxembourg

Tel.: (+352) 26 26 99 - 1

Fax: (+352) 26 26 99 - 33 33

E-mail: [email protected]

www.blfram.com

banque de luxembourg bl global flexible

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