BLI's Fund Research department is responsible for the analysis of external funds – i.e. funds managed by other fund managers. A pioneer of open architecture, Banque de Luxembourg launched its specialised fund research and selection unit in 1998.

Our analysts have selected around 60 best-in-class funds (including equity, bond, sector and flexible funds) from a universe of around 60,000 funds. Key information about each fund's performance and the main holdings is updated daily. A quarterly fund management report is also available.

Selection of the best funds

Our analysts have selected around 60 best-in-class funds (including equity, bond, sector and flexible funds) from a universe of around 60,000 funds. Key information about each fund's performance and the main holdings is updated daily. A quarterly fund management report is also available.

 

Step 1: Quantitative analysis

Selection criteria:

  • Analysis of the fund's performance over an extended period (3 to 5 years)
  • Performance consistency
  • Fund volatility
  • Analysis of the fund's behaviour in bull and bear markets

 

Step 2: Qualitative analysis

Selection criteria:

  • Management style and methodology
  • Transparency of investment policy
  • Stability and quality of the management teams
  • Reputation and financial solidity of the promoter
  • Country of domiciliation
  • Size of assets
  • Risk control
  • Fee structure

Step 3: Selection of the top 80 funds

  • From 30 asset classes
  • Continuous monitoring to ensure relevance of funds included in the selection

The Team

The six-person strong team is made up of five analyst-fund managers who provide investors with research and management services focusing entirely on external funds. The team conducts independent expert quantitative and qualitative analyses that get to the heart of the ‘personality' of the funds under scrutiny and help to elucidate which funds best fit with our clients' needs and the requirements of our portfolios.
The scope of the research team focuses on the main asset classes, i.e. equities, bonds, money-market products, commodities, currencies and absolute performance strategies, but excludes private equity and hedge funds. The lack of transparency and liquidity – and simplicity, of these funds go against BLI - Banque de Luxembourg Investments' cautious approach.

BL Fund Selection: a portfolio made up of the best funds in the market

BL Fund Selection invests in a selection of external funds, managed by leading international mangers. The proportion of different financial instruments (for example the share of equity funds) varies according to market conditions.

Three profiles are available:

  • BL Fund Selection 0-50: invests a maximum of 50% in equity funds with no restriction (geographic, sector, or currency)
  • BL Fund Selection 50-100: invests between 50% and 100% in equity funds with no restriction (geographic, sector, or currency)
  • BL Fund Selection Equities: invests a minimum of 75% in equity funds with no restriction (geographic, sector, or currency)

FURTHER INFORMATION