ARTY 28 June 2013 ARTY is a diversified fund invested in both European corporate bonds and equity markets. The manager is looking for the best yielding asset that firms can provide.
Manager Comments on
28 June 2013
Performance as 28/06/13
Although equity exposure was reduced to 30% and ARTY had a short duration of 3.4 years over the period, the fund was not spared from market upheaval born in the US. The fund therefore lost 2.1% over June but still gains 2.4% since the beginning of the year.
Evolution of the Portfolio and its index since inception (base 100)
NAV
Composite ARTY index ARTY* en % en %
ARTY
135
Composite index ARTY
125
Although ARTY's significant investment in high-yield bonds was a source of volatility (almost half the bonds in portfolio, or 25.4% of the fund), the interest of lending to issuers such as CONTINENTAL AG, WENDEL and LAFARGE remained intact with the FED's announcement of a change in its quantitative easing policy: the surplus yield paid by these companies relative to government bonds offers an attractive risk profile and better protection from an increase in rates. However, and as in all our bond segments, ARTY favours credit spread risk rather than duration risk. However, we were quick to take profits, particularly on the FAURECIA 2018 3.25% convertible bond which has had an impressive performance gaining 20% over nine months. On the equity segment, financials at the head of the pack last month delivered poor performances. We nevertheless remain convinced that the trend towards the European Banking Union should continue to progress slowly and that mechanisms to resolve banking sector bankruptcies should ultimately help stabilise this sector, which has been struggling for the past five years. In contrast, LAGARDERE was at the top of the league: after paying an overall dividend of €10.3, or more than a third of its capitalisation following the disposal of EADS, the share's performance has reached almost 50% on a 12 months period and provided the opportunity for us to take profits. Portfolio Profile
Bond pocket profile
1,7
Price Earnings 2013
14,0
Dividend Yield (%)
4,4
Average Market Cap (M€)
Number of holdings Total assets (M€)
37 267,4 33 263,4
Duration
3,40
Modified Duration Bond yield
3,28 3,9%
Number of securities Fixed rate
73 92,5%
Variable bonds
1,7%
Convertibles
5,8%
Asset Allocation
1 month YTD 1 year 3 years 5 years since inception
115 105 95 85 May-08
May-09
May-10
May-11
May-12
May-13
-2,1
-1,4
2,4
0,9
11,3
4,6
15,5
5,1
34,3
6,6
31,4
4,0
Indice : source Bloomberg
Past performances do not guarantee future performances and are not constant over time. Fund and index performances include dividend distributed (strating January 1st 2013). Until 2012 included, index performance was calculated ex dividend.
Annual Performance
ARTY
Composite index ARTY*
ARTY
Composite index ARTY*
Year
en %
en %
Year
en %
en %
2008
-7,4
-7,9
2011
-6,8
-2,2
2009
21,7
7,5
2012
13,5
3,8
2010
7,6
2,5
2013
2,4
0,9
Principal Holdings Equities
EV/Sales 2013
1 313,86 €
145
Weight (%)
LANCASHIRE
1,4
Bonds
Risk Measures Weight (%)
BPCE PERP
1,6
since inception Standard Deviation (%)
MICHELIN
1,2
UNICREDIT 2022
1,6
- Fund
8,1
HSBC
1,2
WENDEL 2019
1,5
- Index
5,6
BOUYGUES
1,2
FGA CAPITAL 2014
1,4
Tracking Error
3,4
ROYAL DUTCH SHELL
1,1
SOCIETE GENERALE 2023
1,4
Alpha
0,1
Beta
1,4
Bond Ratings Breakdown
Fixed rate Bond Breakdown
< 12 months 10,4%
Bonds 53,34%
Investment Grade 52,4% Between 12 months and 3 years 35,6%
Equity 29,7% High yield 41,5%
Between 3 years and 6 years 35,5%
Convertibles 3,31% Non rated 6,1%
> 6 years 18,5%
Cash 13,65%
Fund Characteristics > Portfolio Inception > Classification
30 mai 2008 Diversified FCP
> Min recomended
Financial Conditions > Subsription fee
3% max.
> Redemption fee
1% max.
> Annual fees
1,5% TTC max.
investment
5 Years
> Performance based fee
15% TTC of outperformance max.
> Risk level
4 on a scale from 1 to 7
> NAV calculation
Daily
> ISIN Code
FR0010611293
> Custodian
BNP PARIBAS SECURITIES SERVICES
> Currency
Euro
> Dividends policy
Capitalized
> Portfolio Manager Olivier de BERRANGER This document is for informational purposes only and is not an invitation to invest in Financière de l’Echiquier’s funds. This fund is registered with and regulated by the "Autorité des Marchés Financiers" ("AMF") in France and can be marketed to a retail audience in France, Italy, Germany, Switzerland and Spain. The fund is UCITS IV compliant. This document does not constitute a recommendation to buy or sell any investment, or subscribe to any investment management advisory service. FINANCIERE DE L’ECHIQUIER - ASSET MANAGEMENT COMPANY 53 AVENUE D'IENA – 75116 PARIS TEL. : 01.47.23.90.90 – FAX : 01.47.23.91.91 – www.fin-echiquier.fr/en S.A. AU CAPITAL DE 10 000 000 € – SIREN 352 045 454 – R.C.S. PARIS AGREMENT A.M.F. N° GP 91004