29077413

Document Sample
29077413 Powered By Docstoc
					                                                                                                                                                             Argos Real Assets
                                                                                                                                                                                                         June 2012

Monthly Review
Management Team : Mark Ebert, Cristofer Gelli

Investment Style / Objective
Real Assets Fund - The objective is to create a long-term thematic vehicle for investors wanting to take advantage of the solidity
and stable returns offered by Real Assets. The Fund aims to produce substantial long-term capital growth and dividends of 3-4%
p.a., replicating the return of a diversified portfolio of direct real asset investments, but with 10 day liquidity. This will be achieved
by active management, focusing on strong book/price ratios, and high asset intensity, using funds, REITS, ETFs and equity securi-
ties of companies across the world to provide exposure to all 5 key sub-classes of real assets:
Real Estate - Infrastructure - Timberland Assets - Agricultural Assets - Precious Metals

NAV EUR 96.47 / CHF 96.34
                                                                                          Performance MTD                                               Since Inception (02.04.12)
Argos Real Asset Fund EUR                                                                      2.55%                                                             -3.53%
Argos Real Asset Fund CHF                                                                      2.43%                                                             -3.66%
MSCI World USD (Benchmark)                                                                      4.93%                                                            -4.50%
Eurostoxx 50                                                                                    8.85%                                                            -7.69%
Swiss Market Index                                                                              5.05%                                                            -1.77%
S&P 500                                                                                         3.96%                                                            -2.93%
JP Morgan Inv Grade Bond Index                                                                  0.36%                                                             0.84%
DJUBS Broad Commodity Index                                                                     5.48%                                                            -3.23%
AIGA Agricultural Commodities                                                                  14.15%                                                             4.59%
HFR Global Hedge Fund Index                                                                    -0.29%                                                            -1.74%

Manager’s commentary

In its third month of operation, the fund returned +2.55%
versus the +4.93% return of its benchmark, the MSCI World
(USD) Index.     Since inception on 01.04.12, the fund                                                                Asset Allocation
returned –3.53%. The return for the fund's initial month
                                                                                                                                                            Cash                     Precious
was dragged down by certain non-recurring expenses and                                                                                                      11%                       Metals
                                                                                                                                                                                       10%
abnormally high brokerage commissions, both associated
with the launch of the fund (-1.26%). Excluding the effect                                                                                                                                          Ag
                                                                                                                                Timber                                                             10%
of these one-time items the fund would have had a perfor-                                                                        20%
mance of –2.27% since inception, compared to the
benchmark’s –4.50%. This is more or less what we would
have expected. In months of high stress for the market,
such as May 2012, the fund, which is long-only, lost less
than half as much as the market. Since inception, the
adjusted performance absorbed only 50% of its benchmark’s
losses.

Our market positioning is currently risk averse, and
accordingly we have a higher cash allocation and a lower
agricultural allocation than our risk neutral positioning. Our                                                                       Real Estate
                                                                                                                                        19%                                                     Infrastructure
currency exposure remains broadly unchanged from last                                                                                                                                                30%

month and, in accordance with our policy to hedge out the
majority of the fx exposure, we are fully hedged against
USD, AUD, CAD and GBP.                                                                                                Performance of Current Equity Portfolio by Sector in Local Currencies


Precious metals are limited to gold, held in the ZKB ETF                                                                                                                    Month                            YTD
which is backed by allocated physical gold. Our allocation
                                                                                                                      Precious Metals                                        1.84%                          -4.87%
strategy calls for a constant 10% exposure, and it was up
1.8% for the month. Our agricultural positions hurt us the                                                            Agricultural Assets                                   -6.41%                          -4.51%
most this month. They all lost money, some due to the US
                                                                                                                      Infrastructure                                         2.56%                          2.29%
drought.    The sector was down over 6%, even though
agricultural commodities performed exceptionally well. Our                                                            Real Estate                                            2.92%                          -0.47%
infrastructure holdings performed well, up over 2.5%. Real
                                                                                                                      Timber Assets                                          7.15%                          0.97%
estate, which has been our most volatile sector, managed to
gain almost 3% for the month. 11 of our 14 real estate                                                                Total                                                 2.05%                          -0.39%
stocks gained, with European REITs leading the recovery.
Finally, timber made a spectacular recovery, all stocks were
up, partially in sympathy with good news on US house-
building. The sector was up 7.2% and now has a positive
YTD result.


 This document does not constitute an offer or solicitation to purchase the shares in the Fund described here-in. Past performance is not a guarantee of future returns. The value of investments may fall as well as rise. Any
 decision to invest should be based on a full reading of the fund prospectus and the most recent financial statements. The information and figures here-in are valid on the data here-of. There is no obligation to update the
 figures here-in.

 For further information please contact: Argos Investment Advisors S.A., Luxembourg, e-mail: info@argos-funds.com, www.argos-funds.com. Tel. + 352 26 26 25 05
                                         Argos Investment Managers S.A., Geneva, e-mail: info@argos-managers.ch, Tel. +41 22 799 90 90, Fax. +41 22 799 90 99
                                                                                                                                                            Argos Real Assets
                                                                                                                                                                                                      June 2012

Manager’s commentary

Trigon Agri A/S suffered 12% and is now down 8% since we in-                                                    Lippo Malls was up 8% after dropping almost 10% in May. It an-
vested. The market anticipates that the unusually dry weather in                                                nounced a SGD 750m issue of fixed rate notes, enhancing its
Russia and the Ukraine will negatively affect crop yields. Notwith-                                             financial flexibility and debt maturity profile. We believe it has good
standing, we like its valuation and expansion plans for continued                                               prospects for 2012 given the strong domestic consumption in
purchases of very reasonably priced farmland close to storage and                                               Indonesia.
transportation infrastructure.
                                                                                                                British Land was up 5.7% in June. It announced the acquisition of
Archer Daniels Midland was down 7.4% and was the subject of                                                     Hamsworth Quays from The Daily Mail General Trust which includes
broker downgrades. The most severe drought in the US since 1980                                                 a 14 acre site at Canada Water in South East London, close to other
has caused ADM to warn that profit at its grain handling segment is                                             major developments it owns. Its latest earnings release displayed
running below its $150-200m estimate, plus ethanol margins have                                                 resilient operational per
eroded due to high corn prices and disappointing gasoline demand.
We continue to like its dividend underpinning and cheap valuation.                                              formance and it has increased its dividend; it now yields 5.3%, and
                                                                                                                it trades on a discount to NAV of 17.2%.
Brookfield Infrastructure Partners was up 7.25% after reporting
strong quarterly funds from operations (FFO) increasing to $108m                                                Neuwe Steen Investments rebounded over 8% in June, as it an-
from $98m, although these were marginally down on a per unit ba-                                                nounced the sale of the majority of its assets in Switzerland, nar-
sis. The increase was primarily driven by its transport and energy                                              rowing its focus to the Netherlands and Belgium. However it re-
segment, including a doubling of FFO from its Australian railroad.                                              mains our biggest loser, having announced a downward revaluation
Its utilities’ FFO increased due to inflation indexation, and its timber                                        of its investments by EUR 26.5m in May. We think that the market
operations were down on poor pricing of Chinese exports.                                                        has priced in the worst case for this retail and office focussed portfo-
                                                                                                                lio, which is trading at a 35% discount to NAV and a yield of 15%.
Cheung Kong Infrastructure has rebounded 11.2% since its 2012
low on 30 May. It is bidding for a JV with Manchester Airport and Wharf Holdings rebounded 8.5% from its low in early June, finish-
has a strong     balance sheet which could support a GBP 3bn acqui- ing the month up 4.9%. Investors are concerned that its plan to
sition.                                                               raise its holdings in Greentown, a Chinese property company , in
                                                                      light of the uncertain economic situation. Wharf’s HKD 42bn of cash
Societa Iniziative Autostradali e Servizi SpA was added to the should be sufficient to finance this and its lease extension at Ocean
portfolio in June and rose 7.9%. SIAS is the second-largest toll-way Terminal in Hong Kong, but its gearing will go up to 33% from 28%
operator in Italy, with 18% of the Italian network, with concessions if it does. Nevertheless, we like the 45% discount to NAV.
based on a clear regulatory framework which provides visibility on
tariffs that are likely to see 7% CAGR in 2011-15, driven by capex. Our local currency timber portfolio rose 7.2% in June, with all stocks
In February 2012, SIAS sold its Chilean business for EUR 565m, posting significant gains. Plum Creek was up 8.8% and Potlatch
with a capital gain of EUR380m, and it is now 100% focussed on was up 11.4%. 9 out of 12 forestry companies posted first quarter
Italy. Consequently, its refinancing needs are limited to EUR 0.5bn earnings which beat consensus. Current timber prices stand at the
in 3 years and are already covered by existing liquidity. SIAS has a highest level since May 2010. Market sentiment was boosted by
prospective yield of 9.2% and trades at a 30% discount to BV.         companies’ raising their housing starts estimates, however Chinese
                                                                      demand for North American timber was incrementally negative and
Mirvac was down 4% as speculation mounted that it will not use inventories are building, putting new pressure on prices.
the AUD 322m proceeds from the sale of its hotel business to repur-
chase stock. Mirvac is maintaining an unusually high cash balance
to avoid a credit squeeze if the situation in Europe deteriorates. As
housing markets in Sydney, Brisbane and Melbourne slow, it is fo-
cussing on the fast growing regions of Western Australia and
Queensland.

Investor information
Strategy Objective                              To produce substantial long-term capital growth and          Number of Stocks                                                                  Generally between 30 and 50
                                                    high dividends by investing in 5 Real Asset sub-
                                                classes: Infrastructure, Agricultural Assets, Precious
                                                              Metals, Timber Assets and Real Estate

                                                                 Luxembourg Umbrella SICAV—Part 2            Subscription and Redemption                                             10th, 20th and last day of each month
Legal Form

Registration for Public Distribution                                                         Luxembourg      Minimum investment                                                                            Equiv. EUR 10’000

UCITS Status                                                                                           No    Annual management fee                                                                                        1.5%

Investment Manager                                                     Argos Investment Managers SA          Performance fee                                                                                                N/A

Management Team                                                               Mark Ebert, Cristofer Gelli    Currency Class                                                                                           EUR CHF

Administrator and custodian                              Banque Privée Edmond de Rothschild Europe           Telekurs Class A1 EUR                                                                                   18146710

Auditor                                                                        PriceWaterhouseCoopers        Telekurs Class C1 CHF                                                                                   18316466

Legal Advisors                                                              Allen & Overy, Luxembourg        ISIN Code Class A1 EUR                                                                            LU0765414692

Net Equity Exposure range                                                                       90-100%      ISIN Code Class C1 CHF                                                                            LU0769261826

Geographical Region                                                                                Global    Bloomberg Class A1 EUR                                                                               ARGRAA1 LX

Inception date                                                                               2 April 2012    Bloomberg Class C1 CHF                                                                               ARGRAC1 LX

Reference Index                                                                         MSCI World USD



Subscription and redemption fees as mentioned in the prospectus can be waived upon identification of the investor either via the relevant form or direct notice providing the INVESTING INSTITUTION’S NAME, the BANK
ORIGINATING THE SUBSCRIPTION, the SUBSCRIPTION / REDEMPTION AMOUNT and DATE to info@argos-advisors.lu or by fax to +41 22 799 90 99.

All transactions which had been executed cannot be cancelled.



This document does not constitute an offer or solicitation to purchase the shares in the Fund described here-in. Past performance is not a guarantee of future returns. The value of investments may fall as well as rise. Any
decision to invest should be based on a full reading of the fund prospectus and the most recent financial statements. The information and figures here-in are valid on the data here-of. There is no obligation to update the
figures here-in.

For further information please contact: Argos Investment Advisors S.A., Luxembourg, e-mail: info@argos-funds.com, www.argos-funds.com. Tel. + 352 26 26 25 05
                                        Argos Investment Managers S.A., Geneva, e-mail: info@argos-managers.ch, Tel. +41 22 799 90 90, Fax. +41 22 799 90 99
                                                                                                                                                            Argos Real Assets
                                                                                                                                                                                                        June 2012

Factsheet
Management Team : Mark Ebert, Cristofer Gelli

Investment Style / Objective
Real Assets Fund - The objective is to create a long-term thematic vehicle for investors wanting to take advantage of the solidity
and stable returns offered by Real Assets. The Fund aims to produce substantial long-term capital growth and dividends of 3-4%
p.a., replicating the return of a diversified portfolio of direct real asset investments, but with 10 day liquidity. This will be achieved
by active management, focusing on strong book/price ratios, and high asset intensity, using funds, REITS, ETFs and equity securi-
ties of companies across the world to provide exposure to all 5 key sub-classes of real assets:
Real Estate - Infrastructure - Timberland Assets - Agricultural Assets - Precious Metals


Fund Characteristics

                                                   Fund has 10 day liquidity. Underlying investments are highly liquid and traded on major stock exchanges—therefore no need for gates /
 Highly Liquid
                                                   side pockets.
 Well Diversified                                  Balanced exposure to Real Asset sub-classes, diversification within subclasses and by country

 Targeting 7-8% real long-term return              Asymmetric return profile: outperformance when equity markets are weak (low down-side capture)

 Moderately Volatile                               Target 15% volatility

 Conservatively Managed                            Long-only, no leverage, no shorting, no hedge funds or private equity

 Straight-forward                                  Highly transparent, low turnover, hedge out fx exposure

 Strong hedge on price inflation                   All components are moderately/highly correlated to inflation
                                                   Correlation to equities and hedge funds – moderate
 Uncorrelated
                                                   Correlation to bonds and commodities - low
 Asset Intensive                                   Focus on strong book / price ratios

 Underpinned by dividends                          Most underlying investments yield 3-8%

 Fair to investors                                 Low Total Expense Ratio




Portfolio Structure — as of 30.06.2012

                                                                 Precious
                                       Cash 12%
                                                                Metals 10%



                                                                              Ag 11%
                    Timber 19%


                                                                                                                                                        Mkt Cap <$1m                 >5m 34%
                                                                                                                                                             33%




                                                                                                                                                                       1-5m 33%


                         Real Estate                                      Infrastructure
                            21%                                                27%




                                       Cash 12%                 ETFs 11%                                                                              Cash EUR 12%


                                                                                                                                                   HKD 4%
                                                                               Equities 31%
                     REITs 34%                                                                                                                                                                      USD 33%
                                                                                                                                             CHF 3%


                                                                                                                                          EUR 3%


                                                                                                                                         JPY 1%
                                                                                                                                        NZD 3%




                                                                                                                                           CAD 12%
                                                                                                                                                                                                    SEK 4%



                                                                                                                                                                                           AUD 9%
                                                                                                                                                       SGD 4%

                                                           Closed Ended                                                                                                    GBP 12%
                                                            Trusts12%




This document does not constitute an offer or solicitation to purchase the shares in the Fund described here-in. Past performance is not a guarantee of future returns. The value of investments may fall as well as rise. Any
decision to invest should be based on a full reading of the fund prospectus and the most recent financial statements. The information and figures here-in are valid on the data here-of. There is no obligation to update the
figures here-in.

For further information please contact: Argos Investment Advisors S.A., Luxembourg, e-mail: info@argos-funds.com, www.argos-funds.com. Tel. + 352 26 26 25 05
                                        Argos Investment Managers S.A., Geneva, e-mail: info@argos-managers.ch, Tel. +41 22 799 90 90, Fax. +41 22 799 90 99
                                                                                                                                                            Argos Real Assets
                                                                                                                                                                                                       June 2012


  Portfolio composition and expected returns*

                                                                                Annual      Annual     Return/                                              Largest Holdings
         Sector                             Portfolio **                                                       Weight**          Yield*    Currency                                                  Description
                                                                                Return*      Vol.*      Vol*                                                  by Sector**

                                                                                                                                                       Westfield Group                Diversified Australian / Intl. REIT
  Real Estate            14 REITs                                                  7%        12%         0.58       19.0%        4.5%       Various
                                                                                                                                                       Chartwell senior Homes Canadian Senior Housing

                         8 Quoted Infrastructure Companies / Trusts                9%        12%         0.75       24.0%        5.0%       Various    3i Infrastructure PLC          Europe/N.A. Infrastructure
  Infrastructure
                         2 Equities: Airports & Tollroads                          9%        12%         0.75        6.0%        3.0%       Various    Flughaven Zurich               Swiss airport Operator

                         3 Timber REITs                                            8%        15%         0.53       14.0%        5.3%          USD     PCL Plum Creek Timber          US Timber REIT
  Timber Assets
                         1 Timber Company                                          8%        15%         0.53        6.0%        5.0%          CAD     Acadian Timber Corp            Canadian, Maine Timberlands

                         3 Farmland Equities                                      12%        12%         1.00        7.0%        0.0%       Various    Prime Ag                       Australian Broadacre Farms
  Agriculture Assets
                         1 Agricultural Infrastructure Equity                      5%        17%         0.29        3.0%        0.0%          USD     Archer Daniels Midland         Storage / Distribution

                         1 Gold ETF - Allocated Bars in Switzerland                8%        17%         0.47       10.0%        0.0%          USD     ZKB Gold ETF A                 Allocated Pysical Gold
  Precious Metals


  Cash                   Deposit with Banque Edmond de Rothschild                  0%         0%          n/a       11.0%        0.0%          EUR     Deposit Banque Edmond de Rothschild

  5 Sectors              38 Investments                                          8.0%       12.8%        0.58      100.0%       3.00%

 *Expected returns are the portfolio manager's expectation over the next 3 years.
 **As at 30 June 2012




 Back-Tested Statistics



                                                                                                                             Argos Real Asset
                                                                                                                                                                MSCI World MXWO
                                                                                                                                  Fund*
                                  Cumulative return strategy                                                                         31.41%                                -6.79%

                                  Annualised return since inception                                                                    7.1%                                -1.74%

                                  Annualised volatility since inception                                                              17.23%                               12.79%

                                  Sharpe ratio since inception                                                                         0.41                                -.07%

                                  Percentage of months fund outperformed when MXWO was positive                                       28.0%

                                  Percentage of months fund outperformed when MXWO was negative                                       77.0%

                                  Fund AUM                                                                                     Target USD 100m

                                  Number of stocks                                                                                     35-50




                                  *Statistics derived from back-tested model portfolio from 01.01.08 to 31.03.12, excludes fees




Investor information

Strategy Objective                               To produce substantial long-term capital growth and          Number of Stocks                                                                  Generally between 30 and 50
                                                     high dividends by investing in 5 Real Asset sub-
                                                 classes: Infrastructure, Agricultural Assets, Precious
                                                               Metals, Timber Assets and Real Estate

                                                                  Luxembourg Umbrella SICAV—Part 2            Subscription and Redemption                                             10th, 20th and last day of each month
Legal Form

Registration for Public Distribution                                                          Luxembourg      Minimum investment                                                                            Equiv. EUR 10’000

UCITS Status                                                                                            No    Annual management fee                                                                                        1.5%

Investment Manager                                                      Argos Investment Managers SA          Performance fee                                                                                                N/A

Management Team                                                                Mark Ebert, Cristofer Gelli    Currency Class                                                                                           EUR CHF

Administrator and custodian                               Banque Privée Edmond de Rothschild Europe           Telekurs Class A1 EUR                                                                                   18146710

Auditor                                                                         PriceWaterhouseCoopers        Telekurs Class C1 CHF                                                                                   18316466

Legal Advisors                                                               Allen & Overy, Luxembourg        ISIN Code Class A1 EUR                                                                            LU0765414692

Net Equity Exposure range                                                                        90-100%      ISIN Code Class C1 CHF                                                                            LU0769261826

Geographical Region                                                                                 Global    Bloomberg Class A1 EUR                                                                               ARGRAA1 LX

Inception date                                                                                2 April 2012    Bloomberg Class C1 CHF                                                                               ARGRAC1 LX

Reference Index                                                                          MSCI World USD


Subscription and redemption fees as mentioned in the prospectus can be waived upon identification of the investor either via the relevant form or direct notice providing the INVESTING INSTITUTION’S NAME, the BANK
ORIGINATING THE SUBSCRIPTION, the SUBSCRIPTION / REDEMPTION AMOUNT and DATE to info@argos-advisors.lu or by fax to +41 22 799 90 99.
All transactions which had been executed cannot be cancelled.



 This document does not constitute an offer or solicitation to purchase the shares in the Fund described here-in. Past performance is not a guarantee of future returns. The value of investments may fall as well as rise. Any
 decision to invest should be based on a full reading of the fund prospectus and the most recent financial statements. The information and figures here-in are valid on the data here-of. There is no obligation to update the
 figures here-in.

 For further information please contact: Argos Investment Advisors S.A., Luxembourg, e-mail: info@argos-funds.com, www.argos-funds.com. Tel. + 352 26 26 25 05
                                         Argos Investment Managers S.A., Geneva, e-mail: info@argos-managers.ch, Tel. +41 22 799 90 90, Fax. +41 22 799 90 99

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:16
posted:9/1/2012
language:English
pages:4