Objective

Seeks capital appreciation through investment in European equities with market capitalization greater than 65 million euros. Focuses exclusively on developed European markets.

Strategy

Diversify portfolio using strict controls on the level of investment in any particular industry to maximise the impact of individual stock selection – assess relative earnings strength and valuation discrepancies within industry groups, based upon the premise that stock markets are reasonably, but not perfectly, efficient; investor sentiment is considered through analysis of earnings revisions, analyst recommendations and price behavior

Fund Facts
Asset Manager
  • Degroof Petercam Asset Management, Brussels, Belgium
Benchmark MSCI Europe Index
Fund Inception Date July 12, 2010
Mimimum Investment €50,000
Expense Ratio 1.55%
ISIN IE00B3DD4Y80

Annual Average Total Returns
(%) as of 31/03/2021

Trailing 3
Months
1
Yr
3
Yrs
5
Yrs
10
Yrs
Since
Inception
Inception
Date
European Equity Fund 10.81 41.42 2.23 5.44 5.41 5.96 9/7/2010
MSCI Europe Index 8.49 36.0 7.9 8.16 7.72 8.3

Characteristics as of 31/12/2020

Statistics Fund Index
Weighted Median Market Cap € 14.3B € 40.9B
Average Price/Book 1.3x 1.9x
Average Price/Earnings 16.5x 21.4x
Average Yield 2.4% 2.6%
Beta (ex ante) 1.1 N/A
Active Share 79.2 N/A
5 Yr Earnings Rate 7.6% 7.8%
Ten Largest Portfolio Holdings 16.4% 5.7%
# Securities in Portfolio 121 434
Turnover Rate (12 Mo) 89.6 N/A
Fund Size € 126.4MM
Sector Fund Index Diff.
Communication Services 4.0 3.9 0.1
Consumer Discretionary 11.7 11.5 0.1
Consumer Staples 12.7 13.5 -0.8
Energy 4.4 4.3 0.0
Financials 17.4 15.5 1.8
Healthcare 12.4 14.4 -2.0
Industrials 16.1 14.5 1.6
Information Technology 6.3 7.6 -1.3
Materials 8.5 8.2 0.2
Real Estate 1.2 1.4 -0.3
Utilities 5.1 5.0 0.1
Cash 0.4 0.0 0.4
Country Fund Index
France 27.8 16.7
Germany 13.4 14.9
Italy 4.5 3.4
United Kingdom 11.4 19.9
Other Developed Europe 42.9 44.5
Other Developed Asia 0.0 0.6
Top 10 Holdings % Weight
Total SE 2.8
Siemens AG 2.1
BNP Paribas SA Class A 1.5
Solvay SA 1.5
Volvo AB Class B 1.5
AXA SA 1.4
Royal Dutch Shell Plc Class A 1.4
Koninklijke Philips N.V. 1.4
SAP SE 1.4
Siemens Healthineers AG 1.3
  • Q4 2020 Performance Review

    12-Month Review

    • The Fund underperformed for the period.
    • Underperformance for the year was widespread with the biggest relative detractors for the year being stock decisions in Consumer Discretionary, Materials, and Consumer Staples.
    • In Consumer Discretionary, not owning a name had a significant negative impact on relative performance. Added to that was the underperformance from stocks held.
    • The positive contribution in the Health Care sector came from two names. Not owning some of Health Care companies on the CBIS Restricted List benefitted.

    3-Month Review

    • The Fund outperformed the benchmark for the period.
    • Almost all excess returns are attributed to stock selection within sectors.
    • Overweight to the lowest P/B quintile and underweight to the highest P/B stocks were the primary driver of outperformance.
    • Stock decisions in Consumer Staples and Communication Services had the biggest positive impact on relative performance. The main detractors were in Information Technology and Consumer Discretionary.

    Current Positioning

    • The weighted average market cap of the portfolio is less than half that of the benchmark index.
    • The overall P/E and P/B ratios for the portfolio are lower than the index, indicative of the fund’s value tilt.
    • Sector weights do not deviate significantly from the index.
    • Excess return is generated by quantitative and fundamental stock analytics within sectors.
  • Fund Fact Sheet

    PDF
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