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 31/12/2018

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
  • 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).

     

  • Fund Fact Sheet

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