Dienstag, 18.10.2016 17:35 von

PR Newswire

All information is at 30 SEPTEMBER 2016 and unaudited.
Performance at month end with net income reinvested
One Three One Three Launch
Month Months Year Years (20 Sep 04)
Net asset value* (undiluted) 1.6% 8.0% 21.0% 29.5% 263.5%
Net asset value* (diluted) 1.6% 8.0% 21.0% 30.3% 263.9%
Share price 1.8% 8.6% 19.7% 28.5% 247.3%
FTSE World Europe ex UK 1.6% 9.0% 21.1% 27.1% 179.7%
Sources: BlackRock and Datastream
At month end
Net asset value (capital only): 287.67p
Net asset value (including income): 292.02p
Net asset value (capital only)*: 287.67p
Net asset value (including income)*: 292.02p
Share price: 276.88p
Discount to NAV (including income): 5.2%
Discount to NAV (including income)*: 5.2%
Net gearing: 1.4%
Net yield**: 1.8%
Total assets (including income): £303.5m
Ordinary shares in issue***: 102,278,113
Ongoing charges****: 0.89%
* Diluted for treasury shares.
** Based on a final dividend of 3.35p for the year ended 31 August 2015 and an interim dividend of 1.65p per share for the year ending 31 August 2016.
*** Excluding 8,050,825 shares held in treasury.
**** Calculated as a percentage of average net assets and using expenses, excluding performance fees and interest costs, after relief for taxation for the year ended 31 August 2015.
Sector Analysis Total Assets  Country Analysis Total Assets 
(%)  (%) 
Industrials 24.8  France 19.8 
Financials 19.9  Switzerland 11.8 
Consumer Goods 18.7  Denmark 10.5 
Consumer Services 9.8  Netherlands 10.5 
Health Care 9.4  Germany 10.3 
Technology 8.6  Belgium 6.9 
Basic Materials 5.8  Ireland 6.7 
Telecommunications 2.8  Sweden 5.5 
Net current assets 0.2  Finland 4.2 
-----  Russia 3.4 
100.0  Luxembourg 2.9 
=====  Italy 2.6 
Turkey 2.1 
Ukraine 1.4 
Poland 1.2 
Net current assets 0.2 
Ten Largest Equity Investments
% of
Company Country Total Assets
Anheuser-Busch Inbev Belgium 3.8
Zurich Insurance Group Switzerland 3.3
RELX Netherlands 3.3
Tenaris Luxembourg 2.9
Vinci France 2.9
Bayer Germany 2.9
KPN Netherlands 2.9
Pandora Denmark 2.8
Unibail-Rodamco France 2.8
Pernod Ricard France 2.5

Commenting on the markets, Vincent Devlin, representing the Investment Manager noted:
During the month, the Company’s NAV increased by 1.6% and the share price rose by 1.8%. For reference, the FTSE World Europe ex UK Index was up 1.6% during the period.
September saw markets more or less unchanged over the month but easing slightly from the intra-month peak. This was in part due to concerns around the banking sector, following fears of a larger than expected settlement for Deutsche Bank in its dispute with the US Department of Justice. Sector leadership on a pan-European basis came from the information technology, materials and energy sectors, the latter two buoyed by the late announcement of an oil supply cut by OPEC. Telecoms, health care and financials lagged, the latter mainly driven downwards by the banks sector.
European macro was overall less positive than in previous months, with the Eurozone Purchasing Managers Index lower, albeit still above the key 50 level. On the periphery, Spain revised its 2016 GDP growth forecast higher and internal argument in the opposition Socialist party increased the potential that acting Prime Minister Rajoy may be able to form a government.
The Company’s NAV rose in line with the market in September. Performance was driven by sector allocation, whilst stock selection, when compared with the reference index, proved negative. On a sector basis, a higher weighting to industrials proved positive for performance. The sector has been driven higher by companies with exposure to improving end markets, in particular within the construction sector. The higher weighting to information technology also proved profitable. The lower weighting to financials, when compared to the index, and in particular banks, was positive for performance as the sector sold off sharply at the end of the month led by the falling share price of Deutsche Bank.
A holding in Bayer was the largest detractor from performance as investors opted to take profits following an extension of the timeline for completion of the Monsanto deal. Standalone, we believe the company continues to trade on an attractive valuation.
Additionally, whilst the higher allocation to technology was positive on a sector basis, Scout 24, a German company with online auto and property portals, was among the top detractors. During the month the company placed some equity at a discount, putting some downward pressure on the share price, particularly given it has had a very strong run post-IPO and some of its key performance indicators were weak in its first half results.
Positively, not holding Novo Nordisk, which was sold in August, contributed to performance. The shares continue to see weakness after management downgraded guidance due to pricing pressures.
At the end of the period the portfolio had higher weightings when compared with the reference index to industrials, technology and consumer services. The Company had a lower weighting towards oil & gas, utilities, health care, basic materials, consumer goods, telecoms and financials.
European equities proved surprisingly resilient following their sudden and sharp fall post the EU referendum vote. Overall, positive data surprises across many geographies led to an improvement in sentiment, whilst ongoing extraordinary monetary easing by central banks dampened volatility across European markets. However, we do expect greater market volatility in the fourth quarter with multiple global political events. These include the US elections, Brexit negotiations and Italy’s referendum, which are in our view the key political catalysts investors will be focusing on until the year end.
The tone on fiscal policy seems to be changing in our opinion; as monetary easing reaches its limits, major economies are moving away from austerity. Historically, reckless fiscal expansion has boomeranged badly on economies and investors. Nevertheless, we see productivity-enhancing measures such as infrastructure investment as more effective than usual against a background of near-zero rates. Therefore, we continue to see opportunities for a number of companies benefiting from capex spending and an ongoing low rates environment, notably within the infrastructure and construction space where we expect trends to either remain supportive or accelerate further. Whilst we need to remain vigilant given the volatile market conditions, we think that the market offers some interesting valuation and growth opportunities given the ongoing low growth environment we are operating in.
18 October 2016
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