Multi Asset Boutique Flexible Allocation

Vontobel Fund II - Vescore Active Beta

ISIN
LU1617166936
Valor
36870126

Fund strategy

Investment objective

This absolute-return-oriented multi-asset fund aims to participate in rising markets and achieve steady value growth in the long term with a balanced risk profile (usual target volatility: 5.5%).


Key features

The fund invests worldwide mainly in equities and government bonds. Based on quantitative models, it systematically adapts its equity ratio and bond duration to the risks and opportunities offered by the prevailing market conditions. The usual equity weighting range is 0-60%. The usual duration range is 0-10 years.


Approach

Vescore's proven investment process amalgamates outstanding proprietary models, cutting-edge technology, and active management. For this fund, the highly experienced investment team uses two of their main models to manage the portfolio: one for equities and one for bonds. These models continuingly assess the fundamental macro-economic risk environment and return potential with a long-term view, and make the corresponding investment decisions without emotional biases, while ensuring systematic risk control at all times.

1,706.35
NAV
-6.70%
Performance YTD
4 stars
As at Aug 13 2020 As of Jun 30 2020

Why invest?

  • We are active investors. Our quantitative investment processes provide the optimal allocation without behavioral bias.
  • We are a “white-box” investor. Clients receive transparent, cost-efficient implementation.
  • Delivered excellent returns since 2002 across cycles.

”The investment concept is based on academically recognized principles and is the result of decades of research...Overall, the fund receives a top rating of A ("very good").”

Scope, independent rating agency, 2019

Our investment process

Vontobel Fund II – Vescore Active Beta invests in global equities and government bonds with a focus on tactical asset management. The structure of the portfolio is optimally adapted to the risks and opportunities offered by prevailing market conditions (economic cycles) through long-term tactical management of the equity ratio and bond maturities.

The assessments of the fundamental economic risk environment on which tactical allocation management is based, and the potential returns derived from them, are grounded in the models developed by Vescore (GLOCAP and FINCA). The decisions made by these models are unemotional and comprehensible, and attention to risk is systematically maintained at all times. Currently, the equity ratio is kept between 0% and 60%; while the duration in global government bonds is kept between 0 and 10 years. The equity market weighting is currently equally divided among North America, Europe, and Asia-Pacific. The bond markets are weighted based on model signals. Liquid, exchange-traded derivatives can be used to efficiently implement the investment strategy and for hedging purposes.

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Investment opportunity

Investing in a global universe of risk premia is the most sustainable source of return, as proven by financial market research. Since risk premia vary over time, dynamic management adds value. In essence, equities and bond risk premia are the most relevant risk premia. With this fund, you can participate in them in a straightforward fashion.

Our strategy is used as a base investment in multi asset portfolios. In addition, a December 2018 study by the rating agency Scope showed that adding such systematic, model-based multi asset approaches brings a diversifying benefit alongside star-manager, discretionary asset management: investor portfolios overall exhibit stabler risk-return profiles.

Investment philosophy

Academic research has proven that economically justified risk premia offer sustainable sources of investment return. Since risk premia vary over time, active investment adds value. Research upholds the fund’s quantitative models and systematic approach, and spurs continual innovation. Model-based allocation and risk management, precisely implemented, ensure optimal exposure and unbiased portfolio adjustments. The character of the models enables investment transparency for investors. Using liquid instruments enables efficient and cost-effective implementation.

Investment team

  • Heritage over 20 years: Vescore’s proprietary, quantitative models for asset allocation and risk management grew out of research at the University of St. Gallen in the late 1990s and have worked well through all economic cycles.
  • Commitment to innovation: Our ‘Research & Development’ Team applies strong research backgrounds and continues innovating, dedicated to developing new models and maintaining and adjusting existing ones. The team follows a research strategy, monitors academic research and reviews feedback from the portfolio and clients.
  • Systematic, coherent processes: based on the model design, Computation Team checks data quality, calculates portfolios daily and supplies allocation data to portfolio managers as well as for reporting and subsequent analysis. This team also tests and verifies any model adjustments before introducing them into the investment process, with clients notified of material changes. The Portfolio Management Team monitors and implements calculated portfolios daily, transforming allocation adjustments into investments using exchange-traded financial instruments.

All data is as at Jul 31 2020 unless otherwise indicated.

Daily Performance

Periodic Performance

1M YTD 3Y 5Y SI
AI EUR 0.2% -7.7% 2.5% 3.1% 106.7%

Rolling Performance

Aug 01 2015 - Jul 31 2016 Aug 01 2016 - Jul 31 2017 Aug 01 2017 - Jul 31 2018 Aug 01 2018 - Jul 31 2019 Aug 01 2019 - Jul 31 2020
AI EUR 1.8% 6.2% 4.2% 8.5% -4.9%

Annual Performance

Past performance is not a reliable indicator of current or future performance. Performance data does not take into account any commissions and costs charged when shares of the fund are issued and redeemed, if applicable. The return of the fund may go down as well as up due to changes in rates of exchange between currencies. The value of the money invested in the fund can increase or decrease and there is no guarantee that all or part of your invested capital can be redeemed.

All data is as at Aug 13 2020 unless otherwise indicated.

Fund data
Portfolio Manager Stephan Schneider
Fund Domicile Luxembourg
Fund Currency EUR
Share Class Currency EUR
End of fiscal year 31 March
Index EURIBOR® 3M-TR (EUR)
Share Class Launch date Nov 11 2002
Distribution type Dist
Last distribution 35.00 (Jul 19 2019)
Fund Registrations AT, CH, DE, ES, FI, FR, GB, IT, LU, NL, NO, SE, SG
Share Class Registrations AT, CH, DE, LU, SG
Nav Information
Highest since launch 1,870.16
Lowest since launch 998.22
Fund volume in mln. EUR 602.74
Share class volume in mln. EUR 326.82
Fees And Expenses
Management fee 0.45%
Performance fee 0.00%
TER 0.58% (Mar 31 2020)
Identifiers
ISIN LU1617166936
Valor 36870126
Bloomberg VOVABAI LX
WKN A2DUV2
Parties
Depository RBC Investor Services Bank S.A.
Management Company Vontobel Asset Management S.A.
Swiss Paying Agent Bank Vontobel AG
Swiss Representative Vontobel Fonds Services AG

Available Share Classes

Share class Currency ISIN Distrib. Type Launch date Management fee TER TER Date
AI EUR LU1617166936 Dist Institutional Nov 11 2002 0.45% 0.58% Mar 31 2020
B EUR LU1936094579 Accum Retail Jan 21 2019 0.90% 1.07% Mar 31 2020
H (hedged) CHF LU1936094736 Accum Retail Jan 21 2019 0.90% 1.13% Mar 31 2020
HI (hedged) CHF LU1936094819 Accum Institutional Jan 21 2019 0.45% 0.64% Mar 31 2020
N EUR LU1936095030 Accum Retail Jan 21 2019 0.45% 0.62% Mar 31 2020
Click here to see an overview of our shareclass naming convention.

* TER includes performance fee where applicable

All data is as at Jul 31 2020 unless otherwise indicated.

Current exposure

Document Date DE EN FR IT
Factsheets & Commentaries
Factsheet Jul 2020
Brochures
Product Flyer Oct 2019
Product Sheet May 2020
KIIDs
KIID Aug 2020
Legal Documents
Articles of Association Jul 2019
Notification to Investors Jun 2020
Sales Prospectus Jun 2020
Financial Reports
Annual Report Mar 2020
Dividend Payout Jan 2019
Semi-Annual Report Sep 2019
Dealing Information
Holiday Calendar 2020 Jan 2020
List of Active Retail Share Classes Dec 2018
Policies
Shareclass Naming Convention Nov 2019
  • Limited participation in the potential of single securities

  • Success of single security analysis and active management cannot be guaranteed

  • It cannot be guaranteed that the investor will recover the capital invested

  • Derivatives entail risks relating to liquidity, leverage and credit fluctuations, illiquidity and volatility

  • Interest rates may vary, bonds suffer price declines on rising interest rates

  • Investments in foreign currencies are subject to currency fluctuations

  • Money market investments are associated with risks of a money market, such as interest rate fluctuations, inflation risk and economic instability

  • Use of Derivatives may entail additional risks (e.g. Counterparty risk)

  • Price fluctuations of investments due to market changes are possible

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