Our Sole Aim:

Protect & Grow your capital

An Independent Asset Manager Serving Its Investor Base

Dear Investors,

Your World Winners fund climbed +11.1%, in line with its index.

Our discretionary management mandates were also up sharply in 2016.

We are satisfied with these performances in such a turbulent market environment (Brexit, Trump’s election, Italian referendum).

Since the  Brexit, World Winners has bounced back 16.5%, confirming our recommendation to ” buy while taking the Brexit on board ” from 28 June.

Once again, our fundamental, contrarian and conviction-based approach, built around the potential for future value growth, paid off. We do not seek to follow fashions (short-term momentum management), but to create value over the long term, as we have done for the past 20 years. Our priority is to ensure that the capital is protected (we have very significant investments in the fund) by avoiding (numerous) valuation bubbles, even if this means temporarily underperforming compared with a particular index.

From our perspective, 2016 marked the end of the cycle of rate cuts that began more than 35 years ago. This paradigm shift will have far-reaching implications for the financial markets. Indeed, lower interest rates inflated the value of many assets while encouraging index tracking and trend following. Conversely, the end of the cycle of rate cuts is expected to benefit active management and particularly our value contrarian management.

We will continue to invest according to our prudent approach, remaining extremely selective.

At cycle lows, value equities, which are our speciality, are one of the few asset classes to have strong upside potential.

Your World Winners fund is an outstanding core portfolio invested in around 40  market-leading companies that are  poorly understood and unpopular with investors, and therefore clearly undervalued.

We have ideas for diversification into bonds, especially international/emerging market bonds, which will allow our customised diversified mandates to grow your assets over the long term.

We are very confident in our ability to deliver performance for your portfolios, as the market always ends up recognising undervalued companies.

On this optimistic note, we would like to wish you an excellent 2017!

THIERRY FLECCHIA
Fondateur

Disclaimer

PREVAL is a société anonyme having its registered office at 11 boulevard Royal, L-2449 Luxembourg, entered in the Trade and Companies Register under number B190081 PREVAL, acting as a management company subject to the provisions of Chapter 15 of the collective investment schemes act of 17 December 2010, as amended, and authorised and overseen in Luxembourg by the Commission de Surveillance du Secteur Financier (CSSF).

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