Fensifund offers a solution for all investors looking for diversifying their assets on a long term perspective. Fensifund intends to convince holders of saving accounts that the only solution for asset growth is diversifying and investing in consistent risk taking asset managers.
The fund is aimed at growth-oriented investors open to moderate-to-high risk and wishing to participate in the return potential of the equity markets. Accordingly investments are primarily focused on equities. Risk management can make the profile of the fund evolve between offensive (equities between 60% and 90%) and defensive (equities between 30% and 60%) – depending on expecting respectively a bull or a bear market environment.
Other asset classes than equities are considered in terms of diversification or temporary financial shelters in times of crisis. Investment decisions are implemented through equity funds, bond funds, mixed asset funds, other funds and derivatives.
The asset allocation of FensiFund is organized along 3 crosscutting strategies:
These 3 strategies are used to guide us in our fund selection to optimize the risk/return ratio of FensiFund. The backbone of our fund selection is based on a thorough search of asset managers able to deliver stable and recurring performance using a robust investment process in line with their investment strategy.
FensiFund is invested in equity funds, in bond funds, in mixed assets funds and to a limited extent in alternative funds.
Mixed assets funds are the core of the strategy and amount for 30% of the portfolio of FensiFund. They bring consistency to the performance while limiting volatility.
The weight of equity funds and bond funds changes depending on our expectations on markets, making the asset allocation of FensiFund change between 30% in equities (defensive) and 90% equity (offensive).
We work with various asset management companies, from the big firm managing billions in assets to the boutique with just hundreds of millions under management. The share of the assets invested in boutiques will range from 30% to 100% of the portfolio. We see very often that boutiques are more responsive, flexible and inventive than big firms, which makes them deliver better performances less correlated to market volatility. On the other side, big firms have more consensual asset management stategies which can be less volatile. In line with the whole process of investment of FensiFund, we try to optimize the risk/return ratio by investing into funds of big firms and of boutiques.
Investment themes is an important part of FensiFund investment strategy. The target is to have 30% of the portfolio invested in promising themes: high growth potential sectors, market inefficiencies, booming sectors,…
1. Family Businesses and Small Caps
In the long run, small companies have always been better performers than big ones.
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It is easier to grow fast when you are a small player in a growing niche than when you are a big global player. Furthermore, small companies are often run by their founders who are usually the most motivated and best placed persons to develop their business.
2. Climate change and environment
Climate change and environmental protection are forcing people to change their consumption habits
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We need to reduce our dependency on fossil energies, improve our energy efficiency to reduce our energy consumption, recycle to reduce the amount of waste produced and reduce our consumption of natural resources,… All these changes are a source of development of new activities and therefore of growth for the coming years.
By 2021, most of the subordinated debts which are not convertible into equity if needed will not be part of the Tier 1 capital anymore. This type of debt (called Legacy) will be replaced by a new type of debt (called CoCo or AT1) that will be convertible into equity if the bank needs additional core capital according to Basel III rules. All the Legacy debt still in the market is trading at an important discount. A large part of this Legacy debt will be called at par by the issuers by the end of 2021.
4. Technological change
The world never stops changing. Technological change that is taking place is a source of many investment opportunities. We have different partners to invest into this theme.
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First, we are investing in a specific sub-theme: medical technology. On one hand, there is biotechnology that allows to develop treatments to previously incurable diseases, to develop new treatments with less side effects than existing treatments, to develop a new diagnostic tests for early detection of diseases in order to treat them more efficiently and without any delay,... Instead of investing in big companies that are very sensitive to market fluctuations, we decided to invest in small drug discovery companies (some in form of private equity) which offer more potential with a limited risk due to the large diversification in investments. Apart from biotechnology is the sector of medical technology which is less popular among investors, even if it is of considerable importance. There are continuous evolutions in medical devices (pace makers, MRI, scanners, implants, surgical equipment,…), which is source of growth in a traditionally defensive sector.
Finally, we are investing in robotics. This theme will be the 3rd industrial revolution. Robotics is not only about robots, but also about software, tools and sensors which will allow robots to accomplish tasks that will no longer look like sci-fi within the next few years. However this will not only be an industrial revolution. It will change many aspects of our life: medicine (see above), cars, leisure…
FensiFund is a sub-fund of the umbrella Conventum SICAV, a Luxembourg UCITS V SICAV with European passport.
Conventum Asset Management (Conventum AM), a 100% subsidiary of Banque de Luxembourg, acts as the management company of the SICAV and its sub-funds. It carries out all functions of the SICAV operation but investment management, which is delegated to external investment managers.
Conventum AM has delegated the investment management to Fuchs & Associés Finance SA, which had entrusted Jan Lecluyse and Ivan Nicolas to manage Fensifund.
Conventum AM is responsible for all other activities than investment management, namely: fund governance, legal compliance and requirements, central administration (performed in privileged partnership with its subsidiary European Fund Administration-EFA), distribution support, risk management and supervision.
The fund’s assets are held in custody with Banque de Luxembourg, one of Luxembourg's largest, oldest and top tier financial institutions. In parallel with the development of the financial centre of Luxembourg, the bank has also developed specific expertise in investment funds and a range of services and tools for asset management professionals.
The SICAV auditor is PricewaterhouseCoopers. The SICAV and all the fund's decision-making bodies are subject to the supervision of the financial regulator CSSF.
With the new Basel III rules, banks will have to strengthen their core capital