Seven Diversified Fund

Transcription

1 Seven Diversified Fund Diversified through choice, flexible through pragmatism [Updated on December 29, 2017]

2 A management style that has safely navigated two major financial crises Seven Diversified Fund January December 2017 total return +36 % annualised return +2.9 % / yr annualised volatility 4.3 % 1 Financial crisis of 2008 October 2007 March 2009 Seven Diversified Fund 0 % 5050 Index - 26 % max. drawdown % Flex Index - 22 % Sovereign debt crisis of 2011 July 2010 November Seven Diversified Fund + 5 % 5050 Index - 10 % Flex Index - 5 % 5050 Index: 50% DJ EuroStoxx50 index (ex-dividends) + 50% EuroMTS 7 10 year index (ex-coupon) Flex Index: 507 flexible French & Luxembourg funds in existence since at least 1 January 2008 and with assets under management of more than EUR million 2

3 Focus on 2008 : a fully flexible fund that lives up to its name In the financial crisis of 2008, the S&P 500 index shed - 46%, but the Seven Diversified Fund gained + 1.6% The Fed cuts its key interest rate for the first time since 2003 The UK Treasury comes to Northern Rock s rescue Following six rate cuts since September 2007, the Fed s key interest rate now stands at 2% - 46 % BNP Paribas freezes the assets of three of its subprime funds The Kerviel scandal breaks In less than five days the Fed injects liquidity of $250 billion The SEC prohibits short-selling of Fannie Mae & Freddie Mac securities files for bankruptcy The US Treasury Department purchases more than $50 billion in banking stocks Seven Diversified Fund s equity market exposure 40% 30% 20% 10% 0% Between July 2008 and March 2009, the Seven Diversified Fund had practically no exposure to the equity markets, while the S&P 500 index dropped 37% during the same period 3

4 Capital protection, one of the most powerful performance generators 1 / 2 A clear management philosophy protecting our investors capital from market shocks Burst of the internet bubble Subprime crisis Sovereign debt crisis Seven Diversified Fund : +22 % Seven Diversified Fund : +0 % Seven Diversified Fund : +5 % Index: -28% 5050 Index: -26% 5050 Index: -10% Actual data Actual data + 28 % 120 Simulated data Outperformance ( %) - 1 = % 80 (1-52 %) % 40 4

5 Capital protection, one of the most powerful performance generators 2 / 2 The impact that flexible and responsive management can have over the long term is simply astounding January December 2017 Seven Diversified Fund 5050 Index total return +372 % +114 % 500 annualised return annualised volatility +7.2 % / yr 5.2 % +3.5 % / yr 10.4 % Actual data +372 % 400 max. drawdown % % Simulated data +114 % 5

6 Momentum investing, our performance driver An approach broken down into three different types of input 1 Price momentum 2 Risk momentum 3 Macro momentum NFP Investment strategies that have shown their mettle Newton s law applied to investing: unless external forces and factors come into play, a market s momentum should remain the same Allows us to scratch beneath the surface High volatility is associated with a bear market Low volatility is associated with a bull market Leading economic indicators reflect the health of the global economy Analysing their trends provides a source of invaluable information Circuit breakers are in place to counter risks of the macroeconomy and the stock markets decoupling 6

7 2017 : an improved management process to confront fresh challenges Seven Diversified Fund 2.0 : striving for simplification and a better portfolio balance 1, January December 2017 Seven Diversified Fund 2.0 Seven Diversified Fund 1.0 total return annualised return annualised volatility max. drawdown +601 % +9.1 % / yr 6.6 % % +372 % +7.2 % / yr 5.2 % % Simulated data Seven Diversified Fund 2.0 A steadfast management philosophy A clearer matrix of investment rules 500 A better balance between equities & bonds 400 A higher return IMPLEMENTED ON 1 JANUARY 2017 A similar risk profile 7

8 GRAA TM : Global Risk Asset Allocation, our risk allocation process A core belief, risk management should be place at the heart of the performance generation process Investment universe Momentum analysis Seven Diversified Fund Stock Indices & Equities Exposure from 0 % - 70 % Price momentum January December Risk momentum Government bonds Exposure from 0 % % Macro momentum NFP Currency risk hedged 8

9 There can be no sustainable, regular and controlled performance without risk management zzzzzzzzz Total Seven Diversified Fund % 0.28% 0.21% 1.00% 0.87% -0.36% 0.62% -2.56% 2.52% 2.06% -0.45% -0.11% 4.15% 4.22% % 1.49% -0.57% -0.26% 0.36% -0.05% -1.22% -0.18% 0.12% 0.45% 1.67% 0.93% 1.61% 5.19% % -0.03% -0.31% -0.07% 2.41% -0.91% 2.64% 1.47% 1.89% -0.93% 0.47% 0.00% 5.79% 4.20% % -0.78% 2.98% 0.15% -2.98% -0.06% 1.07% 0.66% 2.78% 1.09% -1.90% 2.26% 3.04% 12.21% % 1.00% -1.81% 1.70% 0.09% -1.04% 0.82% 0.48% -0.62% -0.10% -0.45% 0.31% 0.06% 7.64% % 1.20% -0.08% -0.01% -0.22% -0.22% 0.83% -1.08% -0.40% -1.75% 0.09% -0.02% -1.44% 8.31% % -0.10% 1.57% 0.84% 0.30% -2.51% 1.93% -1.00% 1.96% 2.24% 0.86% 0.15% 7.84% 11.36% % 2.19% -0.42% 0.14% 2.20% 0.72% -0.14% 1.20% -0.78% -0.11% 1.83% -1.40% 4.16% 14.17% % 2.91% 0.61% -0.76% -0.14% -1.33% -1.55% -3.33% -0.33% 1.26% 0.27% -1.91% -1.91% -3.90% % 1.22% -0.05% -0.65% -0.06% 0.94% 0.27% -0.70% -0.82% -1.48% -0.77% 1.64% -0.15% 5.58% % 2.41% 0.42% 0.80% 1.41% -1.24% 1.06% 1.37% -0.23% 3.09% 0.26% -0.31% 8.87% Seven Diversified Fund 2.0 Start >> 01/01/2017 9

10 Main Features ISIN Code Format AMF Classification Strategy Valuation Currency Custodian Valuation Agent Auditors Minimum Subscription Management Fees Performance Fees Class I: LU / Class P: LU SICAV Luxembourg UCITS Diversified Flexible Fund Absolute Return Daily EUR USD CHF CACEIS Bank Luxembourg 5 Allée Scheffer L2520 Luxembourg CACEIS Bank Luxembourg 5 Allée Scheffer L2520 Luxembourg Deloitte Audit 560 Rue Neudorf L 2220 Luxembourg Class I: EUR 000 USD 000 CHF 000 / Class P: EUR USD CHF Class I: 1 % maximum / Class P: 1,50 % maximum 10% Maximum over capitalized EONIA 10

11 Legal information This document was drafted by Seven Capital Management, a management company authorised by the AMF (French Financial Markets Authority - AMF, in France on 13 September 2006 as a portfolio management company under number GP with its registered office at 39, rue Marbeuf Paris, France. This document was prepared for information purposes only and does not represent an offer, a personalised recommendation or a solicitation to purchase the products or services presented in it. Investors are the sole judge of the validity of the transactions which they conclude. Seven Capital Management cannot be held liable for any investment or disinvestment decision made on the basis of information contained on this site. The information, services and products presented are subject to change without notice. The subscription of UCITS units or shares may entail a degree of risk. UCITS are neither guaranteed nor protected, their net asset value may increase or decrease depending on market fluctuations and it is possible that investors may not get back their original investment. In addition, prior to any transaction, investors must: become familiar with the key investor information document and the prospectus for each UCITS, and understand the nature, characteristics and risks of the selected investment. ensure that the selected investments are appropriate, whether in terms of their financial situation, their investment objectives or the risks investors are prepared to accept. Please note that results refer to simulated past performance and past performance is not an indication of future performance. Consequently, investment decisions must not be based primarily on past performance: other items outlined in the factsheet for each UCITS must be considered. The key investor information documents and the UCITS prospectuses presented may be obtained from Seven Capital Management on written request sent to info@seven-cm.com or from the company s website: Lastly, the taxation to which any investment in UCITS units or shares is subject depends on the individual circumstances of each investor. As such, investors are advised to consult their tax advisers. Document for information purposes only and not contractually binding. For further information please refer to the Prospectus, available for french and english speakers and KIID (Key Investor Information Document), available for french, english, german, spanish and italian speakers on our website :. In Switzerland, the Fund appointed as representative Oligo Swiss Fund Services SA, Av. Villamont 17, 5 Lausanne, Switzerland, Tel : , info@oligofunds.ch. The fund s payment service in Switzerland is the Neue Helvetische Bank. 11