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 |
|
| 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 31/12/2018
| Trailing | 3 Months |
1 Yr |
3 Yrs |
5 Yrs |
10 Yrs |
Since Inception |
Inception Date |
|---|---|---|---|---|---|---|---|
| European Equity Fund | -14.42 | -15.48 | -0.81 | 2.67 | -- | 4.98 | July 12, 2010 |
| MSCI Europe Index | -11.27 | -10.00 | 0.99 | 3.77 | -- | 6.88 | July 12, 2010 |
| Statistics | Fund | Index |
|---|---|---|
| Weighted Median Market Cap | 21.1B | 39.9B |
| Average Price/Book | 1.4x | 1.8x |
| Average Price/Earnings | 14.1x | 15.0x |
| Average Yield | 3.1% | 3.4% |
| Beta (ex ante) | 1.0 | 1.0 |
| Active Share | 74.2% | N/A |
| 5 Yr Earnings Rate | 12.1% | 5.5% |
| Ten Largest Portfolio Holdings | 18.4% | 9.7% |
| # Securities in Portfolio | 139 | 447 |
| Turnover Rate (12 Mo) | 54.5% | N/A |
| Fund Size | € 157.3MM | |
| Sector | Fund | Index | Diff. |
|---|---|---|---|
| Consumer Discretionary | 10.5 | 10.7 | -0.2 |
| Consumer Staples | 13.6 | 13.4 | 0.3 |
| Energy | 8.5 | 8.5 | 0.0 |
| Financials | 19.2 | 19.3 | -0.1 |
| Healthcare | 12.2 | 12.5 | -0.3 |
| Industrials | 12.6 | 13.0 | -0.4 |
| Information Technology | 5.8 | 5.6 | 0.2 |
| Materials | 8.3 | 8.6 | -0.2 |
| Real Estate | 1.2 | 1.4 | -0.3 |
| Telecomm Services | 3.3 | 3.3 | 0.0 |
| Utilities | 3.8 | 3.7 | 0.1 |
| Cash | 0.9 | 0.0 | 0.9 |
| Region | Fund | Index |
|---|
| Top 10 Holdings | % Weight |
|---|---|
| Royal Dutch Shell Plc | 3.4 |
| Anheuser-Busch InBev SA/NV | 2.1 |
| Total SA | 2.0 |
| Royal Philips NV | 1.7 |
| Siemens AG | 1.7 |
| Danone SA | 1.6 |
| Henkel AG & Co. KGaA | 1.5 |
| Pernod Ricard SA | 1.4 |
| Intesa Sanpaolo S.p.A. | 1.4 |
| BNP Paribas SA | 1.4 |
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Q2 2018 Performance Review
The European Equity Fund (EUR) returned 1.96% versus the MSCI Europe Index’s 4.42% return and the STOXX Europe Christian EUR Net Index’s 3.93% return.
3-MONTH REVIEW
- After several quarters of strong excess returns, the Fund underperformed in 2Q.
- The sub-adviser constrains sector allocations to be almost identical to the Index weights. Relative performance shows up almost exclusively in specific stock selection within sectors.
- More than 50 bps of relative return was lost in industrials; holdings and under-weights in several sub-industries contributed. The aerospace and defense stock underweight subtracted 14 bps.
- Lower than market average returns within materials and financials also contributed negative excess returns in 2Q (~50 bps each).
- The sub-adviser continued adding value within healthcare with strong selection results and effective substitutions for Catholic Responsible InvestingSM restricted names.
12-MONTH REVIEW
- Even with the disappointing quarter, the European Equity Fund remains ahead of the Index at 1, 3, and 5 years.
- The Fund’s pharmaceutical holdings show average returns of 15.5% for the 12 month period, versus -6.4% with that larger market in the Index. This result was achieved through the combination of Catholic Responsible InvestingSM restrictions on weaker performing companies and the sub-adviser’s selecting attractive alternatives in pharma and other sub-industries. Total value added in health care was more than 220 bps.
- The Fund’s energy holdings returned 30.1% over the past year, slightly behind the Index’s 33.6% average.
- Restrictions on tobacco stocks added value, as their average return was -19.8%.
- The largest negative in stock selection was in industrials (-72 bps).
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Fund Fact Sheet
PDF