General information
| Morningstar | ||
| Asset Class | Asset Allocation | |
| Category | Balanced Profile | |
| Share Class reference currency | CHF | |
| Dividend Policy | Distribution | |
| Total Assets (all classes) in mn | CHF 36.11 | 30.04.2021 |
| Assets (share class) in mn | CHF 36.11 | 30.04.2021 |
| Number of positions | 99 | 31.03.2021 |
| TER | 2.29% | 31.01.2021 |
| TER Synthetic | 2.29% | 31.01.2021 |
General information
| Domicile | Switzerland |
| Legal Form | FCP |
| Regulatory Status | – |
| Registered in | CH |
| Class launch date | 20.09.2004 |
| Close of financial year | 31.07 |
| Dividend Policy | Distribution |
| – Distribution date | November |
| – Last dividend paid (13.11.2020) | CHF 0.54 |
Fiscal Information
| EU Withholding Tax * | |
| – Distribution | – |
| – Redemption | – |
| DE Investmentsteuergesetz (InvStG) | Mix Fund |
| AT Investmentfondsgesetz (InvFG) | Non-declared Fund |
| UK Reporting Status | No |
PERFORMANCE COMMENT
LO Funds–Europe High Conviction outperformed the market by +87 bps net of fees (EUR P share class) in April. The Fund was up +2.94% (P class) while its benchmark, MSCI Europe, rose +2.07%. YTD, the Fund has underperformed the benchmark by -74 bps net of fees (P class), giving a total return of +9.85% (P class) compared to the wider market, which has returned +10.59%. N class shares outperformed the market by +94 bps in April, giving an underperformance of -43 bps YTD for a return of +10.16%.
The Fund outperformed the benchmark last month driven by positive alpha as well as some favourable sector rotation. 60% of the portfolio had a positive contribution to the outperformance, with Adevinta the only one to add >+30bps and no meaningful detractors.
April also saw some reversion of the sector trends experienced earlier in the year, benefiting the fund. Whilst the likes of autos (-5%) and energy (-3%) underperformed, consumer segments such as retail (+7%), and products and services (+6%) led. We estimate that the sectors to which we have zero exposure (Financials, Energy and Basic Resources) added +36 bps (gross) to our relative performance in April. YTD, these sectors have detracted -128 bps (gross) from our performance.
STOCK PERFORMANCE: TOP CONTRIBUTORS AND DETRACTORS
CONTRIBUTORS
The top three positive contributors to the Fund’s performance in April were Adevinta, Worldline and Heineken.
Adevinta: the online classifieds firm saw its shares reverse some of the underperformance seen at the start of 2021. The UK CMA review for the deal to buy the eBay classifieds business is ongoing; this business reported decent quarterly numbers at the end of April.
Worldline: the French payments firm quarterly figures were solid. In addition, reports indicated the company was seeking to divest its payment terminals unit.
Heineken: first quarter results were well received. Group beer volumes were flat with the Heineken brand growing +12%, as the on-trade channel showed signs of recovery in some regions emerging from the pandemic.
DETRACTORS
The three positions that detracted the most from the Fund’s performance last month were Iliad, Schindler and Whitbread.
Iliad: nothing noteworthy at the French telecom firm in April. Despite a couple of broker upgrades, the shares underperformed.
Schindler: first quarter earnings were above consensus expectations. Nevertheless, the cautious tone of management hampered the stock. The elevator industry retains its attractive characteristics and Schindler’s strong position supports good growth potential.
Whitbread: the UK’s largest budget hotelier reported a slightly smaller loss than expected, as RevPAR sensitivity improved on management’s continued success at controlling costs. However, the shares still underperformed as the outlook remained muted. The company continues to take significant share in an industry crippled by the pandemic.
Highlights
LO Funds (CH) – Balanced Allocation (CHF) is an actively managed balanced portfolio in CHF. It offers a transparent, tax-efficient and cost effective solution to get access to the Private Banking Investment Strategy. The fund can invest globally across all major asset classes in individual securities from our high-conviction research lists as well as the best available funds, whether managed by Lombard Odier or by other investment managers selected by our External Fund selection team. It aims to generate positive returns of 4% p.a above cash over a full business cycle while limiting the shortfall. The fund is well diversified both in term of asset class and instruments whose allocation is determined by the Investment Committee. Risk management is an integral part of the investment process and portfolio construction, performed by fund managers at a portfolio-level, alongside independent teams who manage investment risks and monitor operational risks.