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 1.50
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
  • 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.

     

  • Fund Fact Sheet

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