New Factsheet
14 September 2022
Dear Investors,
This week's post focuses on the Monocle fund with the Factsheet for August 2022, new format.
This new and expanded version contains, among other things:
1/ Several risk indicators on the fund: Volatility, Semi-volatility* (or Downside Vol) and Max Draw Down**.
For these indicators, you will see that the fund ranks well: the 5-year volatility is at 7.9% but the Downside Vol (the one that counts) is at 4.9%. Finally, on the MaxDrawdown, we are at -9.8%, hit at the beginning of the COVID in March 2020 - no significant drawdown this year due to our cautious positioning.
2/ On the equity side, the breakdown by capitalisation, sector and region.
It should be noted that 72% of the equity allocation is made up of MegaCap stocks (capitalisation of over $50bn): no liquidity risk on this type of stock, which is consistent with an asset-based fund with daily liquidity.
3/ On the bond side (Credit), the breakdown by Rating and by Maturity.
Here we note that bonds rated Investment Grade (A or better) represent 85% of the bond allocation.
For the sake of simplicity, we have not detailed our derivative positions. They are mainly made up of :
1) a future hedge position on the SP500 index which brings our net equity exposure to 10%.
2) a future hedge position on the USD which reduces our net exposure to the USD to 5%.
Finally, this factsheet is your factsheet: we are of course happy to receive any comments or requests you may have so that this document can be as useful as possible.
Furthermore, Monocle Fund is now article 8 SFDR!
This means that the fund takes a responsible approach to investment by taking into account environmental and good governance characteristics and by excluding companies active in controversial sectors such as tobacco.
* Semi volatility: a measure of the risk of downward performance of the fund, which is not affected by upward returns
** Max drawdown: maximum loss since the last peak in the fund's NAV.
Market and portfolio focus
Behaviour: :
The US consumer price index came out above expectations yesterday afternoon. Core inflation (i.e. inflation excluding energy and food prices) rose sharply in August (+0.6% against expectations of +0.3%). The markets corrected sharply. The S&P500 closed down 4%.
Lines: :
No significant trades in the fund this week.
Have a great week,
Charles
Disclaimer
This presentation is a promotional document. The content of this document is communicated by and is the property of Monocle Asset Management. Monocle Asset Management is a portfolio management company approved by the Autorité des Marchés Financiers under number GP-20000040 and registered with the ORIAS as an insurance broker under number 10058146. No information contained in this document should be construed as having any contractual value. This document is produced for information purposes only. The prospects mentioned are subject to change and do not constitute a commitment or a guarantee. Access to the products and services presented here may be subject to restrictions for certain persons or countries. Tax treatment depends on individual circumstances. The fund mentioned in this document (Monocle Fund SICAV) is authorized for marketing in France and possibly in other countries where the law permits. Before making any investment, it is advisable to check whether the investor is legally entitled to subscribe to the fund. The risks, costs and recommended investment period of the funds presented are described in the KIDD (key investor information documents) and the prospectus, available free of charge from Monocle Asset Management and on the website. The KIDD must be given to the subscribers before the subscription. Past performances are not a reliable indicator of future performances. Monocle Asset Management cannot be held responsible for any decision taken or not taken on the basis of information contained in this document, nor for the use that could be made by a third party. The investor may lose all or part of the amount of capital invested, as the funds are not capital guaranteed.
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