Lupus alpha Structure Sustainable Emerging Markets

WKN: A1JDV8

ISIN: DE000A1JDV87

Lupus alpha Structure Sustainable Emerging Markets offers investors access to the growth potential of sustainable emerging markets equities as part of a value protection concept. The fund enables investors to participate in positive trends in the MSCI Emerging Markets Index filtered by imug/EIRIS10 in accordance with a variety of predefined sustainability criteria. The fund aims to limit possible losses to a maximum of 10 per cent per calendar year by managing equity exposure.

  • 10The Sustainable Investment working area of Hannover-based firm imug GmbH specialises in the valuation of companies, countries and banks in accordance with sustainability criteria. Together with London-based firm EIRIS and a global network of independent research institutes, imug helps institutional investors, investment companies and banks to implement individual sustainability preferences. More than 100 asset managers and asset owners use research analysis from imug and EIRIS.

    For more details, please visit www.imug.de and www.eiris.org

Fund data

Current fund data as of 12/12/2018

Currency EUR
Issue price 93.45
Redemption price 89.00
Fund volume 18.91 Mio.
Launch date 28 December 2012
Minimum investment amount 1,000
Distribution frequency 8annually
Portfolio managers Stephan Steiger, Marvin Labod
Performance fee 420% of Outperformance
Administration fee 3currently p.a. 1 %
Hurdle Rate 550% Eonia Index + 50% UBS Sustain. Equity Index on MSCI EM TR Index
Subscription fee 75 %
Unit price determined daily
Unit redemption possible daily
Fund price publication www.fundinfo.com
  • Source: Lupus alpha; gross performance (BVI method): The gross performance considers all costs incurred at Fund level (e. g. management fee) and assumes reinvestment of any distributions. Costs incurred at customer level such as sales charge and securities account costs are not included. Unless otherwise specified, all indicated performance data show the gross performance. Please note: Past per-formance is not a reliable indicator for future performance.
  • Source: Lupus alpha; the net performance assumes a model calculation based on an invested amount of EUR 1,000, the maximum sales charge and a redemption charge (see master data). It does not include individual costs of the investor, such as a securities account fee. (To this effect, please refer to the price list of your securities account provider.) Please note: Past performance is not a reliable indicator for future performance.
  • The management fee is the fee for managing the Fund and taken from the Fund's assets; it is paid to Lupus alpha for the management and administration of the Fund.
  • The performance fee is a performance-related remuneration depending on the performance or the achievement of specific objectives such as a better performance compared to a benchmark. The costs may also be levied if a pre-defined minimum performance has been achieved.
  • The hurdle rate means a specific minimum interest and/or profit threshold a Fund has to achieve in order to allow the investment company to participate in the Fund's profit.
  • Volatility: Volatility is the range of variation of a security price or index around its mean value over a fixed period of time. A security is regarded as volatile if its price fluctuates heavily. Maximum loss 90 days: The maximum loss specifies an investor's potential loss if he had bought during the past 90 days at the highest price and sold at the lowest price. VaR 95 – 10: Value at Risk defines the level of loss which will not be exceeded within 10 days with a probability of 95%. VaR 99 – 10: Value at Risk defines the level of loss which will not be exceeded within 10 days with a probability of 99%. Sharpe Ratio: Sharpe Ratio is the excess return (Fund performance less money market rate) in relation to the range of variation (volatility) and shows the yield of the Fund per risk unit. The higher the Sharpe Ratio, the more yield has been generated in relation to the risk incurred.
  • The sales charge is the difference between the sales price and the unit value. The sales charge varies depending on the type of the Fund and the distribution channel and usually covers the advisory and distribution costs.
  • Distributing Funds do not reinvest the generated income, they pay out the income to the investor
  • The correlation measures the strength of the statistical relationship between two variables. A positive correlation means "the more ... the more", a negative correlation means "the more ... the less". The value of correlation is in the range between -1 (completely opposed) and +1 (completely equal). Correlations are some kind of no-tice on but no evidence for causalities which mean proven cause-effect relation-ships.

Performance chart

Performance since 01.07.2014: +1.75 %
As of: 31.07.2014
Performance

Performance (gross in EUR):¹

201620172018
Jan-2.55 %1.06 %1.82 %
Feb-0.54 %2.22 %-2.72 %
Mar2.97 %1.08 %-1.69 %
Apr-0.60 %0.04 %0.47 %
May-0.69 %-0.30 %-1.35 %
Jun2.38 %-0.30 %-2.26 %
Jul2.36 %0.78 %1.51 %
Aug1.34 %0.11 %-0.53 %
Sep-0.11 %0.00 %-0.66 %
Oct0.88 %4.10 %-2.82 %
Nov-0.33 %-1.86 %0.49 %
Dec0.28 %2.25 %n.a.
Year5.38 %9.44 %n.a.

fromtoLupus alpha Structure Sustainable Emerging Markets
1 month31.10.201830.11.20180.49 %
90 days31.08.201830.11.2018-2.99 %
1 year30.11.201730.11.2018-5.52 %
3 years30.11.201530.11.20186.53 %
5 years29.11.201330.11.20181.02 %
this year29.12.201730.11.2018-7.60 %
since inception28.12.201230.11.2018-6.80 %
since inception p.a.28.12.201230.11.2018-1.18 %

12-month-timeframe (gross)Lupus alpha Structure Sustainable Emerging Markets
30.11.2017 - 30.11.2018-5.52 %
30.11.2016 - 30.11.20177.33 %
30.11.2015 - 30.11.20165.05 %
30.11.2014 - 30.11.2015-11.38 %
30.11.2013 - 30.11.20147.14 %

Key Risk ratios (gross):³

as ofLupus alpha Structure Sustainable Emerging Markets
Volatility p.a.30.11.20188.31 %
Maximum Draw Down 90 Days30.11.2018-18.29 %
VaR 95 - 1030.11.2018-1.27 %
VaR 99 - 1030.11.2018-1.80 %
Sharpe Ratio30.11.2018n.a.
Distribution02.01.20180.20 €
Fund structure

Correlations? as of 30/11/2018

MSCI Emerging Markets0.84
MSCI World0.51
EURO STOXX® 500.46

Asset Allocation as of 30/11/2018

Equity Exposure as of 30/11/2018

Highlights
  • Value protection concept with investment focus on emerging market equities
  • Investors utilise the growth potential of emerging market equities without bearing the full investment risk
  • Sustainability criteria are taken into consideration when selecting stocks
  • In the event of negative market performance, the risk of loss is limited to a maximum of 10 per cent per calendar year
  • Positive diversification effect, as emerging markets exhibit favourable correlation properties with developed equity markets and thus form an essential part of a diversified portfolio
Team expertise

The fund is based on a value protection concept proven over many years and can draw upon Lupus alpha Alternative Solutions expertise of more than a decade.

  • Large, experienced portfolio management and research team for Alternative Solutions with more than 20 experts
  • Own team for quantitative investments
  • Proprietary databases
  • Critically scrutinised backtesting methods
  • Methodically sound, experienced risk management
  • Complete control over trading process
Investment concept

Value protection concept for sustainable exposure to emerging markets equities

Lupus alpha Structure Sustainable Emerging Markets enables sustainable and conscientious exposure to emerging markets equities as part of a value protection concept. As a result, investors can benefit from the diversification effects of this asset class in relation to developed equity markets. Investors also profit from the fundamentally dynamic economic development in these markets, characterised by significant pent-up demand and often favourable demographic factors, thus avoiding larger drawdowns. This element is essential for many investors, as the performance of these equity markets, with their unique return opportunities, is characterised by large fluctuations in value.

Lupus alpha Structure Sustainable Emerging Markets invests in the MSCI Emerging Markets Index filtered by imug/EIRIS1 in accordance with a variety of predefined sustainability criteria and participates in the performance of equities from a current selection of 20 emerging markets on four continents (Asia, Europe, Africa and Latin America). The following exclusion criteria are among those taken into consideration when composing indices: nuclear, chemical or biological weapons, production of civilian handguns, landmines, armaments, human rights violations, spirits, tobacco.

As a result, in particularly critical sectors such as pharmaceuticals, chemicals, utilities, automotive and mining, additional central ESG (environmental, social and governance) key criteria are applied using imug/EIRIS's 'best-in-class' approach to select only the most favourable companies. The UBS Sustainable Equity Index on MSCI EM TR, which currently includes almost 300 stocks from 20 countries, is calculated on this basis using a size filter that excludes poorly capitalised and thus potentially illiquid securities. It covers more than 50 per cent of market capitalisation. This index forms the basis for the investments made by Lupus alpha Structure Sustainable Emerging Markets.

The fund's value protection concept is implemented by actively managing the equity ratio, which is intended to limit losses to a maximum of 10 per cent per calendar year in the event of negative market performance. To do this, the fund uses risk models proven in Lupus alpha's Structure Invest family since 2003, keeping equity exposure between zero and a maximum of 100 per cent.

Potential equity exposure is determined using expected shortfall calculations and dynamically adjusted to ensure that the fund can participate to an ever greater extent in further price increases in rising markets and does not limit its profit opportunities.

This results in a favourable, asymmetric risk-return profile (opportunities go up, protection goes down). Despite the limitation of risk, it is even possible to outperform the index over longer periods. This value protection concept for investments in emerging market equities limits sharp declines on the markets and ensures that investors can continue to participate, to some extent, in positive developments.

  • The Sustainable Investment working area of Hannover-based firm imug GmbH specialises in the valuation of companies, countries and banks in accordance with sustainability criteria. Together with London-based firm EIRIS and a global network of independent research institutes, imug helps institutional investors, investment companies and banks to implement individual sustainability preferences. More than 100 asset managers and asset owners use research analysis from imug and EIRIS.

    For more details, please visit www.imug.de and www.eiris.org
Investment objective

The objective of the fund is to give investors access to the high growth potential of emerging market equities while taking specific sustainability criteria into consideration and using the value protection concept to limit equity risk in times of crisis.

Investors participate in equity market development without bearing the full equity risk. The risk of loss is limited to a maximum of 10 per cent per calendar year.

Chances and Risks

The value of investments and the income from them can go down as well as up and you may get back less than the amount invested.

A full list of risks applicable to this fund can be found in the Prospectus.

Disclaimer

This fund information is provided for general information purposes. The fund is a mutual funds (“UCITS”) launched by Lupus alpha Investment GmbH in Germany or launched by Lupus alpha Investment S.A. in Luxembourg.

This information is not designed to replace the investor's own market research nor any other legal, tax or financial information or advice. The information presented does not constitute an invitation to buy or sell or investment advice. It does not contain all key information required to make important economic decisions and may differ from information and estimates provided by other sources or market participants. We accept no liability for the accuracy, completeness or topicality of this information. All statements are based on our assessment of the present legal and tax situation. All opinions reflect the current views of the portfolio manager and can be changed without prior notice. Full details of our funds and their licenses of distribution can be found in the relevant current sales prospectus and, where appropriate, Key Investor Information Document , supplemented by the latest audited annual report and/or half-year report. The relevant sales prospectus and Key Investor Information Documents prepared in German are the sole legally-binding basis for the purchase of funds managed by Lupus alpha Investment GmbH or Lupus alpha Investment S.A. You can obtain these documents free of charge from Lupus alpha Asset Investment GmbH, P.O. Box 11 12 62, 60047 Frankfurt am Main, upon request by calling +49 69 365058-7000, by emailing service@lupusalpha.de or via our website: www.lupusalpha.de.

If funds are licensed for distribution in  Austria the respective sales prospectus, Key Investor Information Document and the latest audited annual report or half-year report are available from the Austrian paying and information agent UniCredit Bank Austria AG based in A-1020 Viena, Rothschildplatz 1. Fund units can be obtained from banks, savings banks and independent financial advisors. Neither this fund information, nor its contents, nor any copy thereof may be sent to third parties, changed in any way or copied without the prior written consent of Lupus alpha Asset Management AG. By accepting this document you agree to comply with the provisions above. Subject to change without notice.

Portfolio Manager

Experienced fund managers

Stephan Steiger has more than 15 years of international experience managing share portfolios. He has been working at Lupus alpha since 2007. Marvin Labod is part of the Lupus alpha Alternative Solutions team since 2013.
 

Stephan Steiger
CFA, CAIA, Portfolio Management Alternative Solutions


Marvin Labod
Portfolio Management Alternative Solutions