e-fundresearch: "Welche Kennzahlen zur Bewertung europäischer Small/MidCap Aktien sind im aktuellen Marktumfeld aussagekräftig?"
Stephan Hornung und Christian Struck, Fondsberater, "SQUAD CAPITAL - SQUAD GROWTH - A" (ISIN: LU0241337616) & "SQUAD CAPITAL - SQUAD VALUE - A" (ISIN: LU0199057307) (05.04.2012): "Die Kennzahlen EV/EBITDA, bereinigtes KGV und EK-Quote sind aus unserer Sicht für die Unternehmensbewertung aussagekräftig." Daniel Lenz, Co-Manager, "Schroder European Small & Mid Cap Value Fund" (ISIN: CH0016875426) (11.04.2012): "We are a long term investor focusing on quality and value and do not adapt our valuation approach over time. We focus on stocks with a high and sustainable dividend yield, solid balance sheet (low net debt to equity and little goodwill) and reasonable valuation multiples valuation, such as price to book and price to earnings. In the current stock market uncertain environment this quality and value focus gives the fund a defensive bias."
David Dudding, Fondsmanager, "Threadneedle European Smaller Cos Ret Acc GBP" (ISIN: GB0001531424) (05.04.2012): "Valuations in Europe remain attractive and balance sheets are strong, we therefore see upside potential in the market as a whole and expect M&A and share buy back activity to increase. Our approach to investing is no different in this environment as to any other. i.e. we continue to focus on companies with sustainable pricing power with exposure to long term growth themes."
Nicholas Williams, Fondsmanager, "Baring Europe Select Inc GBX" (ISIN: GB0000796242) (04.04.2012): "We assess stocks against four key measures: Growth, Management, Value Creation and Valuation. We look for companies whose quality management should deliver expectation-beating returns through operational excellence and value-enhancing use of their balance sheets through well-placed capital expenditure.
Each measure is important, and we take them all into account when considering new investments for the fund. Something we pay particular attention to is management credibility and strategy. We generally avoid companies with multiple share classes, weak voting rights for minority shareholders and poor disclosure histories, or those companies which are unwilling to meet potential investors."
Ollie Becket, Fondsmanager, "Henderson Gartmore Pan Eupn Sm Cos EUR A1" (ISIN: LU0201078713) (11.04.2012): "The market is being influenced by policy makers more than it has ever before. The highly unpredictable nature of European politics (or indeed any politics) makes it difficult to make short term decisions on market direction and we expect bouts of volatility to continue. Our approach to this market, as is the case with all market conditions, is to concentrate on microeconomic fundamentals, which are encouraging; strong balance sheets, growing earnings, good margins and low valuations. If you get your stock selection correct then once the market returns to more normal conditions you tend to see fundamentals reassert themselves (2012 YTD for example). We are also able to use the ‘risk off’ periods to add to overly discounted names. For example, in Q4 2011 we added a number of deep value stocks where we felt the extreme valuation factored in an overly gloomy outlook. These stocks have added strongly to the portfolio in 2012."
e-fundresearch: "Wie schätzen Sie die Marktentwicklung der europäischen Small/Midcap Unternehmen für die nächsten 6-12 Monate ein?"
Stephan Hornung und Christian Struck, Fondsberater, "SQUAD CAPITAL - SQUAD GROWTH - A" (ISIN: LU0241337616) & "SQUAD CAPITAL - SQUAD VALUE - A" (ISIN: LU0199057307) (05.04.2012): "Wir haben keine Marktmeinung. Wir konzentrieren uns auf die Unternehmensentwicklung und –bewertung."
Daniel Lenz, Co-Manager, "Schroder European Small & Mid Cap Value Fund" (ISIN: CH0016875426) (11.04.2012): "We have a long-term investment focus of about 5 years and invest accordingly. In the short term, we are cautious for the European economy. The strong growth from the BRIC countries is slowing down, the growth in the US appears to be not sustainable and the European growth prospects point to a sideways movement. However we think that equity performances could surprise positively. The corporate sector is in much better situation than the public sector. We expect fund flows from fixed income investments into equities and would not exclude the possibility of a sequential P/E multiple expansion."
David Dudding, Fondsmanager, "Threadneedle European Smaller Cos Ret Acc GBP" (ISIN: GB0001531424) (05.04.2012): "While some companies will struggle to keep their heads above water in the current low-growth environment, the strong will get stronger. Some businesses will even grow faster as a consequence of the side effects of deleveraging. The weak Euro continues to advantage European exporters, helping them to further develop their positions in fast growing emerging markets. We remain optimistic that we can continue to find good opportunities in Europe and that many of our holdings are only indirectly affected by the problems with Greek and other peripheral debt. Valuations are attractive and profits were strong in 2011. There are good opportunities in European small caps, although turbulent markets and a difficult macro backdrop will continue to cause volatility. This creates opportunities for experienced stock pickers."
Nicholas Williams, Fondsmanager, "Baring Europe Select Inc GBX" (ISIN: GB0000796242) (04.04.2012): "While we have already taken profits in some strong performing stocks, we remain positive on the outlook for European smaller companies, particularly in the Energy sector where we believe selected firms are well placed to benefit from rising capital expenditure from oil majors.
We continue to like several other economically-sensitive sectors such as Industrials and Consumer Discretionary – areas where we were previously been running a large underweight position relative to the HSBC Smaller Companies Europe ex UK benchmark index. Valuations in these sectors appeared to be discounting all but the bleakest economic scenario and the recent rebound has been particularly pronounced here, providing significant support for the fund."
Ollie Becket, Fondsmanager, "Henderson Gartmore Pan Eupn Sm Cos EUR A1" (ISIN: LU0201078713) (11.04.2012): "The change in sentiment has been quick and the market has moved sharply upwards so far in 2012.We think it is likely, and healthy, that markets will see a period of consolidation. Although the European Central Bank’s Long-Term Refinancing Operations have been supportive in removing a significant tail risk for markets (a liquidity squeeze), this is no panacea. We will doubtless continue to see news flow from Europe’s policymakers: addressing governments’ debt-laden balance sheets will take a number of years. However, given that fundamentals remain strong and valuations are still low, we are confident that the overall trajectory will be upwards and that our portfolio is well placed to benefit."
e-fundresearch: "Welche Elemente sind die wichtigsten in Ihrem Investmentprozess?"
Stephan Hornung und Christian Struck, Fondsberater, "SQUAD CAPITAL - SQUAD GROWTH - A" (ISIN: LU0241337616) & "SQUAD CAPITAL - SQUAD VALUE - A" (ISIN: LU0199057307) (05.04.2012): "Wichtig in unserem Investmentprozess ist die Analyse von Bilanz, GuV und Kapitalflussrechnung sowie die Einschätzung des jeweiligen Geschäftsmodels."
Daniel Lenz, Co-Manager, "Schroder European Small & Mid Cap Value Fund" (ISIN: CH0016875426) (11.04.2012): "Our investment philosophy is based on four pillars: We focus on value and quality, invest with a long-term investment horizon (5 years), diversify our fund (70 to 100 stocks) and invest unconstrained from benchmark. The investment process is directly linked to this philosophy. Our team, fund managers and analysts, screen for value and quality attributes, and build the portfolio bottom up based on our internal independent fundamental analysis (company visits, assessment of balance sheet, valuation)."
David Dudding, Fondsmanager, "Threadneedle European Smaller Cos Ret Acc GBP" (ISIN: GB0001531424) (05.04.2012): "We always work as a team, and the basis for our approach is to seek out companies with robust business models and strong pricing power; this enables them to deliver consistent, visible and repeatable strong returns over longer periods. Companies with high barriers to entry and pricing power are able to sustain high returns for longer than the market tends to assume."
Nicholas Williams, Fondsmanager, "Baring Europe Select Inc GBX" (ISIN: GB0000796242) (04.04.2012): "Risk management. We believe that focusing our research on the right type of company early on, and taking liquidity into account when sizing positions for the fund, helps to mitigate the risks associated with a bottom-up investment process.
We touched on the type of company we look for in the answer to the first question. When constructing the portfolio, we limit individual holdings to a maximum weighting at the time of purchase of 2% and an absolute maximum holding size of 3%. The precise position we will take in an individual stock varies by reference to each specific company’s market liquidity."
Ollie Becket, Fondsmanager, "Henderson Gartmore Pan Eupn Sm Cos EUR A1" (ISIN: LU0201078713) (11.04.2012): "The investment approach applied to this fund is to identify trends that drive consistent performance and to find companies with a strong competitive position and good long term potential. A key focus is on the sustainability of returns and strategy.
This includes appraisal of the barriers to entry and also of the structures of customers and suppliers to ensure that the company is well positioned to defend its profit margins. The team undertakes an extensive programme of between 500 and 700 visits and meetings per year with senior management. These meetings are used to assess company business strategies and the ability of management to implement these strategies. Such meetings are often more constructive and easy to arrange when compared against dealing with the management of larger companies.
The manager also considers it important to be aware of the long-term trends within an industry. This incorporates the examination of structural changes, consumer behaviour and technological advances in the assessment of how specific sectors fit within the overall economic cycle. It is considered important to understand the dynamics of a business and to be aware of the valuation attached to it. In essence this comes down to the quality of earnings growth, risk factors, and the potential return offered by the valuation. The combination of a strong business at an attractive price determines whether the stock is considered a good investment."
e-fundresearch: "Bitte kommentieren Sie die Performance- und Risikokennzahlen Ihres Fonds laufenden Jahr und in den letzten 3 bzw. 5 Jahren."
Stephan Hornung und Christian Struck, Fondsberater, "SQUAD CAPITAL - SQUAD GROWTH - A" (ISIN: LU0241337616) & "SQUAD CAPITAL - SQUAD VALUE - A" (ISIN: LU0199057307) (05.04.2012): "SQUAD CAPITAL - SQUAD VALUE - A: YTD befriedigend, der Fonds hat aufgrund der vorsichtigen Ausrichtung weniger als die relevanten Indizes zugelegt. Über 3 & 5 J. ist die risikoadjustierte Entwicklung gut. Neben der guten Performance überzeugt auch die unterdurchschnittliche Volatilität. Positiv ist, dass der Fonds ein neues All-Time-High verzeichnen konnte.
SQUAD CAPITAL - SQUAD GROWTH - A: YTD sehr zufrieden, ebenso über 3J. und 5J.. Der Rückschlag 2008 nach der „Lehman-Krise“ war relativ hoch, positiv ist aber, dass der Fonds auch auf neuem Allzeithoch notiert."
Daniel Lenz, Co-Manager, "Schroder European Small & Mid Cap Value Fund" (ISIN: CH0016875426) (11.04.2012): "Over the past 3 years the fund was up by annualised 23.8% (all performance data as of 31st March 2012), outperforming its benchmark (STOXX Europe Mid 200 Net Return) by 1.3% per annum (net of fees). This performance was achieved with a volatility of 17.5% and an ex post tracking error of 4.9%. Over the last 5 years the fund’s performance was annualised 3.0%, outperforming the benchmark by 6.5% per annum. During this period the fund’s volatility was 18.6%, the tracking error was 5.7% and the information ratio was 1.1. Since the fund is managed in a pure bottom up approach unconstrained from benchmark, risk is mainly attributable to the stock selection."
David Dudding, Fondsmanager, "Threadneedle European Smaller Cos Ret Acc GBP" (ISIN: GB0001531424) (05.04.2012):
Source: FactSet. From 01.04.2010 fund returns are calculated in Factset using daily official Global Close valuations and daily cash flows. From 01.01.08 until 31.03.2010 returns are based on Global Close (prior to this date official noon prices have been used). All returns are gross of fees and include gross reinvested income. All data is quoted in GBP. The relative returns shown are calculated on a geometric basis. Benchmark is HSBC European Small Cos. Ex UK (prior to 31/10/03 SSB Eur Ext. Index (£))
"We are focused on long term, consistent outperformance, which we have been able to achieve through our stock picking approach and focus on quality, growth companies over the past year, 3 and 5 years. We remain optimistic that we can continue to find good opportunities in smaller companies in Europe. We tend to hold companies with high market shares in relatively consolidated industries as we believe that this enables them to raise prices and hence profitability consistently through the cycle. The portfolio is monitored constantly by a dedicated risk team – a process aided by daily risk reports – to ensure that it is structured appropriately and that any risks are known, are directionally desirable and are managed."
Nicholas Williams, Fondsmanager, "Baring Europe Select Inc GBX" (ISIN: GB0000796242) (04.04.2012): "Performance of the fund is ahead of the benchmark index year to date as well as over twelve months and three years to end February.
One of the features of the way we manage the fund is the way that we integrate risk management into stock analysis as well as portfolio construction. By combining risk awareness at the research and portfolio construction process, we believe it is possible to mitigate the risks associated with a bottom-up investment process.
We believe the results of this can be seen in the strong information ratio of the fund, particularly over the longer term. Importantly, we are not achieving these results by taking excessive risks, as demonstrated by the tracking error numbers below."
Ollie Becket, Fondsmanager, "Henderson Gartmore Pan Eupn Sm Cos EUR A1" (ISIN: LU0201078713) (11.04.2012): "The fund typically has a lower average market cap than its peers and benchmark index. This is because we believe there are some very attractive investments in this area of the market given the lack of research and potentially high growth. This has resulted in the fund having a higher volatility than its benchmark but over any reasonable period it has produced good returns for its investors."
e-fundresearch: "Erzielten Sie in den letzten 5 Jahren Out- oder Underperformance vs. Benchmark und welchen Anteil repräsentierte die Titelauswahl (Performance Attribution)?"
Stephan Hornung und Christian Struck, Fondsberater, "SQUAD CAPITAL - SQUAD GROWTH - A" (ISIN: LU0241337616) & "SQUAD CAPITAL - SQUAD VALUE - A" (ISIN: LU0199057307) (05.04.2012): "Wir geben uns selbst keine Benchmark. Aber Rating Morningstar mit durchgängig 4 bzw. 5 Sternen signalisiert eine Outperformance. Titelauswahl ist der Haupttreiber der Performance. Im SV war der Cashaufbau direkt Anfang August gut. 2012 hat die noch immer höhere Cashquote den Fonds erst mal in der Performance gebremst."
Daniel Lenz, Co-Manager, "Schroder European Small & Mid Cap Value Fund" (ISIN: CH0016875426) (11.04.2012): "The Schroder European Small and Mid Cap Value Fund outperformed its benchmark by 32.1% or 6.5% per annum over 5 years. We use a bottom up approach unconstrained from benchmark; therefore the performance is primarily linked to the stock selection."
David Dudding, Fondsmanager, "Threadneedle European Smaller Cos Ret Acc GBP" (ISIN: GB0001531424) (05.04.2012): "Over the past 5 years, the Threadneedle European Smaller Companies fund outperformed its benchmark generating a relative return of 52.03% as a result of our successful investment process. A clear understanding of the macroeconomic and thematic background is a vital starting point for building the portfolio. This top-down input is complimented by a rigorous bottom-up analytical process, boosted by over 500 smaller company meetings per year which give us the ability to understand and assess poorly-researched companies. Our style is based on the search for high-quality stocks which have pricing power and therefore high and sustainable long term returns, as these are often mispriced by the market. In this regard, Porter’s Five Forces is used as a powerful metric to assess the quality of business models and competitive advantage; a wide variety of other analytical and valuation tools are also used."
Nicholas Williams, Fondsmanager, "Baring Europe Select Inc GBX" (ISIN: GB0000796242) (04.04.2012): "The fund outperformed the benchmark index over the five years to end February 2012, returning a cumulative +7.91% net of fees versus a decline of 19.26% in the benchmark HSBC Smaller Europe ex UK Index.
We manage the fund primarily from a “bottom up” perspective, with a focus on individual companies rather than country or sector decisions. Macroeconomic factors within Europe have been important however in the recent environment, and the performance attribution shows that we added value both from country and individual stock decisions during that five-year period, in a ratio of one third to two thirds."
Source: Morningstar/Barings, as at end February 2012. Past performance is no indication of current or future performance.
Ollie Becket, Fondsmanager, "Henderson Gartmore Pan Eupn Sm Cos EUR A1" (ISIN: LU0201078713) (11.04.2012): "The fund has out performed its benchmark over 1,2,3,4 and 5 years (net of fees, retail share class). Over 85% of the alpha generated can be attributed to stock selection."
Performance Daten per 02.04.2012:
