Echiquier Major 29 October 2010 ECHIQUIER MAJOR invests in mid and large-cap "must-have" European stocks which are selected using a bottom-up stock-picking approach. ECHIQUIER MAJOR's objective is to return long-term performance without reference to an index.
Manager Comments on 29 October 2010
Performance as 29/10/10
Echiquier Major sold off three leaders during the month of October, namely INDITEX (clothing), KUEHNE+NAGEL (transport) and ATLAS COPCO (capital goods), thereby perfectly illustrating the management method that we have applied to the fund for almost six years now. After in-depth analysis in order to convince ourselves that these companies had all of the specific characteristics required to enter our list of leader stocks (high-quality management, high entry barriers, exportable economic model), we waited until the time was right to buy the stocks at a price that implied significant upside potential. In 2009 this opportunity arose. We were convinced that the financial crisis could not undermine the business model of companies such as INDITEX with its unique model of highly-centralised logistics, KUEHNE+NAGEL with its irreproachable quality of service and ATLAS with its unavoidable geographical presence in compressors. We did not hesitate to become shareholders in these attractive growth stocks. A year later and with the worst of the crisis behind us, our investment cases proved wise. The quality of earnings at these companies has been spectacular, driven by emerging markets. For example, over the first nine months of the year, INDITEX saw sales leap more than 14% and EBIT more than 70%. Stockmarket performances were also extremely (overly?) fast with our sell targets reached already. After rallies of more than 70% for INDITEX, 50% for ATLAS and 40% for KUEHNE, we congratulated ourselves on selling off these companies whose prospective growth over the next two years looks fully valued to us. This has not prevented us from maintaining these leaders on our list pending an opportunity for future upside potential. Echiquier Major gained 2.1% during October and is currently 93% invested. Risk Measures
- Fund
26,1
Price Earnings 2010
29,6
Dividend Yield (%)
8,6 17,3%
Beta
90
0,8
Average Market Cap (M€)
DJ STOXX 600
50 Mar-05
Mar-06
Mar-07
ECHIQUIER MAJOR (%)
DJ STOXX 600 (%)
Mar-08
Mar-09
2,1
0,8
17,7
4,8
24,9
10,0
-3,6
-31,2
37,2
-6,2
41,4
1,1
Mar-10
Past performances does not guarantee future performance and is not constant over time. (*) Performance net of fees
Annual Performance ECHIQUIER MAJOR DJ STOXX 600
ECHIQUIER MAJOR DJ STOXX 600
Year
(%)
(%)
Year
(%)
(%)
2005
11,0
17,9
2008
-36,8
-45,6
2006
20,9
17,8
2009
38,4
28,0
2007
2,5
-0,2
2010
17,7
4,8
Weight (%)
Holdings
Largest Variations Weight (%)
Holdings
Change (%)
DANONE
2,7
MAERSK
2,3
SCHOELLER-BLECKMANN OILFIELD EQUIPMENT +19,4
19,2
QIAGEN
2,5
SANDVIK
2,2
VOLKSWAGEN
+18,8
RECKITT BENCKISER
2,4
LINDT & SPRUENGLI
2,2
BENETEAU
+16,1
MICHELIN
2,3
METRO
2,2
MICHELIN
-13,0
CAPITA GROUP
2,3
DASSAULT SYSTEMES
2,1
ARCELORMITTAL (ex MITTAL STEEL)
-6,5
BONDUELLE
-6,1
2,1 15 013,6 50
Total assets (M€)
141,42 €
1,9
Number of holdings
Geographic Distribution
Echiquier Major
70
NAV
1 month YTD 1 year 3 years 5 years since inception
110
Holdings EV/Sales 2010
- Index Alpha
130
Principal Holdings
3 years
Tracking Error
150
Portfolio Profile
Standard Deviation (%)
Evolution of the Portfolio and its index since inception (base 100)
170
689,0
Weighting by Market Capitalization
Sector Distribution Consumer Staples 38,4%
France 35,2% < 2000 M€
14,8% Utiliies 34,6%
Germany 17,2%
Information Technology 10,9%
UK 12,6% Switzerland 9,6%
77,5%
> 2000 M€
Health Care 6,2% Services 4,3%
Sweden 4,6% Denmark 4,6%
Cash
Energy 3,4%
7,7%
Financials 2,2%
Others 16,1%
Fund Information > Portfolio Inception > Classification
11 March 2005 FCP equities from countries in the European Community
> ISIN Code
FR0010321828
> Portfolio Manager
Frédéric PLISSON
> Annual fees
2,392% TTC
Disclaimer 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 III 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 S.A. AU CAPITAL DE 10 000 000 € – SIREN 352 045 454 – R.C.S. PARIS AGREMENT A.M.F. N° GP 91004