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 | 1.50 |
| ISIN | IE00B3DD4Y80 |
Annual Average Total Returns
(%) as of 30/06/2019
| Trailing | 3 Months |
1 Yr |
3 Yrs |
5 Yrs |
10 Yrs |
Since Inception |
Inception Date |
|---|---|---|---|---|---|---|---|
| European Equity Fund | 3.23 | -2.66 | 8.15 | 4.09 | * | 6.29 | 12/07/2010 |
| MSCI Europe Index | 3.45 | 5.14 | 8.89 | 5.70 | * | 8.36 | 12/07/2010 |
Characteristics as of 30/06/2019
| Statistics | Fund | Index |
|---|---|---|
| Weighted Median Market Cap | € 13.8B | € 42.8B |
| Average Price/Book | 1.3x | 1.8x |
| Average Price/Earnings | 14.7x | 16.4x |
| Average Yield | 3.4% | 3.6% |
| Beta (ex ante) | 1.1 | 1.0 |
| Active Share | 77.3 | N/A |
| 5 Yr Earnings Rate | 8.9% | 7.5% |
| Ten Largest Portfolio Holdings | 17.8% | 8.8% |
| # Securities in Portfolio | 135 | 442 |
| Turnover Rate (12 Mo) | 76.2 | N/A |
| Fund Size | € 153.0MM | |
| Sector | Fund | Index | Diff. |
|---|---|---|---|
| Communication Services | 4.4 | 4.6 | -0.2 |
| Consumer Discretionary | 9.1 | 9.6 | -0.4 |
| Consumer Staples | 15.1 | 14.5 | 0.6 |
| Energy | 8.2 | 7.7 | 0.5 |
| Financials | 18.4 | 18.0 | 0.4 |
| Healthcare | 12.9 | 13.0 | -0.1 |
| Industrials | 13.2 | 13.5 | -0.3 |
| Information Technology | 5.9 | 5.9 | 0.0 |
| Materials | 7.6 | 7.6 | 0.0 |
| Real Estate | 1.0 | 1.3 | -0.3 |
| Utilities | 4.4 | 4.3 | 0.0 |
| Cash | -0.1 | 0.0 | -0.1 |
| Country | Fund | Index |
|---|---|---|
| France | 30.0 | 18.1 |
| Germany | 9.0 | 14.0 |
| Italy | 8.4 | 3.7 |
| United Kingdom | 17.7 | 26.6 |
| United States | 1.9 | 0.0 |
| Other Developed Europe | 33.0 | 37.7 |
| Top 10 Holdings | % Weight |
|---|---|
| L'Oreal SA | 2.6 |
| Total SA | 2.6 |
| Anheuser-Busch InBev SA/NV | 2.0 |
| Royal Dutch Shell Plc | 1.7 |
| Danone SA | 1.7 |
| Banco Santander, S.A. | 1.6 |
| Henkel AG & Co. KGaA | 1.5 |
| UCB S.A. | 1.4 |
| Carlsberg A/S | 1.4 |
| BNP Paribas S.A. | 1.4 |
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Q2 2019 Performance Review
3-MONTH REVIEW
- The quarter saw a turnaround in the Fund’s performance as it not only outperformed the value index, but also the core one.
- By design, most of the Fund’s excess return is generated through stock selection; the biggest detractors in the quarter were holdings in Consumer Discretionary, Communication Services, and Health Care. The positive results in Consumer Staples, Information Technology, and Utilities were more than enough to offset that negative impact.
- Within Consumer Staples, excluding tobacco companies was beneficial to the portfolio and more than offset the negative impact.
- Information Technology stocks within the portfolio were another bright spot in the quarter, with most holdings contributing to the outperformance.
- The Fund’s value bias continued to dampen results as the overweight to the lowest P/E names and underweight to highest P/E stocks, strong stock selection was enough to overcome that hurdle.
12-MONTH REVIEW
- The Fund had negative stock selection in all sectors except for Utilities. The sectors that detracted the most were Consumer Discretionary, Industrials, and Health Care.
- Underperformance was driven by a broad group of stocks across all sectors.
The focus on smaller capitalization stocks also detracted significantly from relative results. - 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 detracted over the trailing one year period.
- On the positive side, the Fund’s overweight and stock selection mix in Information Technology was additive to relative return.
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Fund Fact Sheet
PDF