Market Review
It was an excellent quarter for European equities. Positive sentiment was driven by news Greece had secured support for its debt restructuring plan, positive US economic data and the European Central Bank’s €1 trillion long-term refinancing operation. But the period closed on a sour note as fears mounted about Spain’s finances.
Fund Performance
The Fund outperformed the median over the first quarter of 2012. They key positive impacts came from our overweight holdings in Hugo Boss, Heidelberg Cement and SAP Stamm while the main detractors included Storebrand and Julius Baer Group.
Fund Positioning
Due to our bottom-up investment process, we have an overweight stance in personal & household goods. This, though, is a play on individual stocks, rather than the sector as a whole. The portfolio also has a bigger presence in the media space than the benchmark. In contrast, we are underweight banks.
Catie Wearmouth &Kathleen Dewandeleer
31 March 2012