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 31/03/2019

Trailing 3
Months
1
Yr
3
Yrs
5
Yrs
10
Yrs
Since
Inception
Inception
Date
European Equity Fund 10.88 -3.86 5.46 4.12 * 6.08 July 12, 2010
MSCI Europe Index 13.00 6.13 7.74 5.88 -- 8.18 July 12, 2010

Characteristics as of 31/03/2019

Statistics Fund Index
Weighted Median Market Cap € 14.5B € 43.1B
Average Price/Book 1.3x 1.7x
Average Price/Earnings 14.1x 15.9x
Average Yield 3.4% 3.6%
Beta (ex ante) 1.0 1.0
Active Share 77.7 N/A
5 Yr Earnings Rate 11.9% 7.7%
Ten Largest Portfolio Holdings 17.9% 8.1%
# Securities in Portfolio 134 439
Turnover Rate (12 Mo) 62.8 N/A
Fund Size € 158.7MM
Sector Fund Index Diff.
Communication Services 5.0 4.8 0.2
Consumer Discretionary 8.7 9.2 -0.5
Consumer Staples 14.3 14.7 -0.4
Energy 8.8 8.3 0.5
Financials 18.4 18.2 0.1
Healthcare 12.4 13.1 -0.7
Industrials 12.5 13.0 -0.5
Information Technology 5.6 5.5 0.2
Materials 7.5 7.6 -0.1
Real Estate 1.3 1.5 -0.2
Utilities 4.4 4.2 0.2
Cash 1.1 0.0 1.1
Country Fund Index
France 31.8 17.9
Germany 9.1 13.6
Italy 8.3 3.8
United Kingdom 19.9 27.2
United States 2.0 0.0
Other Developed Europe 28.9 37.5
Top 10 Holdings % Weight
Total SA 2.5
L'Oreal SA 2.4
Royal Dutch Shell Plc 2.0
Anheuser-Busch InBev SA/NV 1.9
Mediobanca S.p.A. 1.8
Danone SA 1.5
Henkel AG & Co. KGaA 1.5
Rio Tinto plc 1.5
Coca-Cola European Partners Plc 1.5
UCB S.A. 1.5
  • Q1 2019 Performance Review

    3-MONTH REVIEW

    • The Fund’s +11.3% return (before fees) in Q1 marks a sharp reversal from the -14% drop in the previous quarter but again trailed the benchmark index return of 13.0% by 170 bps.
    • By design, all excess return is generated through stock selection; the largest negatives were in Consumer Staples and Industrials.
    • Within Industrials, not investing in aerospace and defense was detrimental, while the Fund also suffered from profit warnings in some airlines and transportation stocks and Industrials.
    • Information Technology stocks within the portfolio gained more than 20% on average, significantly better than the 16.1% return for corresponding stocks in the index. But because those stocks total less than 6% of the Fund, their contribution to excess return was muted (+20 bps).

    12-MONTH REVIEW

    • Because sector weights are very close to the index, almost all excess return will be attributable to stock selection within sectors.
    • While the overall impact within Healthcare was about -50 bps, the specific performance deficit from not owning some large pharmaceutical companies totaled more than -100 bps.
    • Three weak performing French bank holdings in the Financials sector contributed -90 bps to excess return.
    • Two poor performing auto manufacturers detracted -70 bps over the trailing 12 months.
    • The Fund’s overweights to mid and small cap stocks detracted nearly 180 bps in relative return over the past 12 months.
    • The value tilt also hindered performance for the period. The Fund’s overweights in lower P/E stocks and underweights in the higher P/E stocks within the index contributed -170 bps in relative return over the trailing one year period.

     

     

  • Fund Fact Sheet

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