bl-global flexible-en_jan_2011

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BL-Global Flexible EUR

January 2011

Guy WAGNER

Chief Economist and fund manager


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High Conviction Investing

BL-Global Flexible


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with no specific predefined orientation (defensive, neutral, aggressive)

investing in equities, bonds and money-market products

in all geographical regions: Europe, United States, Asia, emerging markets

BL-Global Flexible

BL-Global Flexible is a balanced fund:


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- to deliver absolute returns

- with low volatility

- and preservation of capital over the medium to long term

BL-Global Flexible is not a capital guarantee fund and its NAV may decline over

shorter periods of time

BL-Global Flexible is therefore not appropriate for investors with an investment

horizon of less than three years

BL-Global Flexible

BL-Global Flexible's objectives:


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- In the long term, the financial markets reflect economic reality and businesses

fundamentals

- However, attempting to forecast short-term fluctuations on the markets is a vain

exercise

- The price paid determines the return

- The best way to control risk is to buy with a high margin of safety

BL-Global Flexible

BL-Global Flexible's investment philosophy is based on the following principles:


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- The valuation of the various asset classes

- Individual investment opportunities within each asset class

- BL-Global Flexible's structural investment themes

BL-Global Flexible

The weight given to the main asset classes in BL-Global Flexible depends on:


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The equity portion invests in quality companies.

A quality company is defined as having the following characteristics:

- Low levels of debt

- Low capital intensity

- High profitability

BL-Global Flexible applies a free cash flow model to assess the value of

companies.

The portfolio's equity weighting may be adjusted using derivatives.

The portfolio's structure is not dependent on a benchmark index; rather it is acombination of individual investment opportunities.

BL-Global Flexible


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The bond portion of BL-Global Flexible invests mainly in government bonds

denominated in euros (the funds reference currency). Duration management is

mainly based on inflation expectations.

From time to time, the fund invests in bonds denominated in other currencies or

corporate bonds when attractive opportunities in terms of risk/return arise.

BL-Global Flexible


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before currency hedging after currency hedging

BL-Global Flexible

Currency breakdown January 2011


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(1) of which 37% is covered through the sale of futures

Asset allocation January 2011

BL-Global Flexible


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before hedging after hedging

Eurozone 18% 5%

United States 26% 8%

United Kingdom 9.5% 3%

Japan 5.5% 5.5%

Asia ex Japan 15.5% 15.5%

Switzerland 5% 5%

Other 5% 5%

BL-Global Flexible

Geographical breakdown of equity portfolio (01/2011)


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by issuer type by currency

BL-Global Flexible

Breakdown of bond portfolio (01/2011)


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BL-Global Flexible

Performance of S&P 500 and equity weighting in BL-Global Flexible


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(1) German government bond

BL-Global Flexible

10-year yield(1) and bond weighting in BL-Global Flexible


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* BL-Global Flexible - capitalisation shares

BL-Global Flexible*: Performance since 2010


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BL-Global Flexible: Performance over5 years


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Launch date: 01/04/2005

Distribution shares: LU0211339816 (Management fee: 1%)

Capitalisation shares: LU0211340665 (Management fee: 1%)

Institutional shares: LU0379366346 (Management fee: 0.5%, initial investment

minimum 5 million)

Assets under management (10/11/2010): 763.65 million

BL-Global Flexible

Key features


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Banque de Luxembourg Fund Research & Asset Management

7, Boulevard Prince Henri - L-1724 Luxembourg

Tel.: (+352) 26 26 99 - 1

Fax: (+352) 26 26 99 - 33 33

E-mail: [email protected]

www.blfram.com

Guy WAGNER

Chief Economist / Fund Manager

Tel.: (+352) 26 26 99 - 3317E-mail: [email protected]

Contact

bl-global flexible-en_jan_2011

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