BL-Global Flexible EUR

Guy WAGNER
Chief Economist and fund manager

January 2011
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BL-Global Flexible

High Conviction Investing

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BL-Global Flexible

BL-Global Flexible is a balanced fund:

• 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

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BL-Global Flexible

BL-Global Flexible's objectives:

- 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
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BL-Global Flexible

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

- 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
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BL-Global Flexible

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

- The valuation of the various asset classes

- Individual investment opportunities within each asset class

- BL-Global Flexible's structural investment themes

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BL-Global Flexible

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 a
combination of individual investment opportunities.
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BL-Global Flexible

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

denominated in euros (the fund’s 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.
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BL-Global Flexible

Currency breakdown – January 2011

before currency hedging after currency hedging

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BL-Global Flexible

Asset allocation – January 2011

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

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BL-Global Flexible

Geographical breakdown of equity portfolio (01/2011)

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%
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BL-Global Flexible

Breakdown of bond portfolio (01/2011)

by issuer type by currency

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BL-Global Flexible

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

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BL-Global Flexible

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

(1) German government bond

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BL-Global Flexible*: Performance since 2010

*
BL-Global Flexible - capitalisation shares
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BL-Global Flexible: Performance over 5 years

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BL-Global Flexible

Key features
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Contact

Guy WAGNER

Chief Economist / Fund Manager

Tel.: (+352) 26 26 99 - 3317

E-mail: guy.wagner@blfram.com

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: info@blfram.com
www.blfram.com