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COMGEST GROWTH MID-CAPS EUROPE
ISIN
Domicile
Fund Currency
Total Net Asset Value (m)
Net Asset Value per Share
31 March 2016
Quarterly Reporting
Investment Team
IE0004766014
Ireland
EUR
113.02
21.30
Contact
Eva Fornadi
Rebecca Kaddoum
Alistair Wittet
[email protected]
PERFORMANCE DATA*
PERFORMANCE COMMENTARY
CALENDAR PERFORMANCE
The increased market volatility witnessed since the start of the year
has put pressure on the European equity market, with the MSCI
Europe index falling 7.1% in Euro over the period under review.
European mid-caps also felt the pressure, particularly given their
strong 2015 performance, however they managed to outperform their
large-cap counterparts over the quarter. Without any clear support of
corporate earnings, the market echoed the major swings seen in the
price of oil, whilst the ECB announced another expansion of its
stimulus package. At its March meeting, the Federal Reserve left its
rates unchanged. In Europe, energy and basic resources were among
the best performing sectors over the quarter while financials and
healthcare suffered the most. On the currency front, the Euro regained
some ground against the US Dollar, while the British Pound fell ahead
of the June vote on a potential “Brexit”.
20.0
Quarterly Return
10.0
0.0
-10.0
-20.0
%
Fund
Index
+/- Index
Descrip
tion
2006
13.90
29.29
-15.38
2007
0.38
-6.17
6.54
2008
-37.04
-48.42
11.37
2009
31.95
40.36
-8.42
CUMULATIVE PERFORMANCE SINCE INCEPTION
2010
19.82
19.48
0.34
2011
-5.17
-13.50
8.33
2012
33.90
20.59
13.30
2013
23.46
24.15
-0.69
% change
Description 3 Months
200
Fund Performance
Index Performance
Fund Volatility
Index Volatility
150
100
50
Fund
2015
31.04
15.10
15.95
YTD
-9.25
-5.37
-3.87
ROLLING PERFORMANCE (%)
250
Dec
2004
2014
7.37
8.78
-1.40
Dec
2009
Dec
2014
Index
-9.25
-5.37
1 Year
1.91
-7.17
18.54
19.58
Annualised
3 Years 5 Years
11.65
11.44
14.90
16.26
14.62
8.65
14.50
17.42
The major emerging market currencies stabilised at the end of the
period. European economic growth remains positive but subdued, both
in real and nominal terms: the ECB now forecasts 1.4% real GDP
growth for the Eurozone in 2016 and inflation of 0.1%. Last but not
least, the geopolitical environment remains tense.
Against this backdrop, your portfolio holdings delivered quite
satisfactory 2015 earnings and a good overall outlook for 2016.
10 Years Inception
7.82
3.73
15.77
20.87
4.88
3.56
15.12
19.29
*Past performance is no guarantee of future results. Indices are used for comparison of past
performance only. Performance calculation based on NAV to NAV variation expressed in euros. Fund
volatility is calculated using weekly performance data. The index used for comparative purposes was
previously the DJ Stoxx and is now the MSCI Europe Mid-Cap index.
PORTFOLIO PROFILE
Asset Class
Number of holdings
Dividend yield
Weight of top 10 stocks
Index*
*used for comparative purposes only
Please see important information on final page
Source: Comgest/FactSet, unless otherwise stated
European equity: Mid-cap
28
1.20%
47.87%
MSCI Europe Mid Cap - Net Return
© 2016 Morningstar, Inc. All rights reserved. Ratings and awards mentioned in this document
can change at any time and do not constitute a buy recommendation.
The views expressed in this fact sheet are those of the portfolio manager at the time of
preparation. They may be subject to change and should not be interpreted as investment advice.
All information and performance data is as of 31 March 2016 and is unaudited (unless otherwise stated)
COMGEST GROWTH MID-CAPS EUROPE | 31.03.2016 | page 1 of 4
COMGEST GROWTH MID-CAPS EUROPE
31 March 2016
Quarterly Reporting
PORTFOLIO DATA
PORTFOLIO POSITIONING / COMPANY-RELATED NEWS
TOP 5 QUARTERLY CONTRIBUTORS
Gemalto was the top contributor to the fund performance during the quarter. The group’s share price was boosted after the company released
FY2015 results that were in line with expectations and reiterated its 2017 objective of profit from operations to reach 660m EUR.
Straumann released strong 2015 results, having delivered 9% organic sales growth and 25% growth in operating profit. The revenue growth was led
by the implant business, driven by strong volume expansion across all regions.
Sartorius Stedim, a leading supplier for the biopharmaceutical industry, also closed 2015 on a strong note with robust 19.4% sales growth in
constant currency and 59.5% earnings per share growth. The group benefited from strong demand for biopharma production equipment, a shift
towards single-use products, as well as market share gains. Expecting these factors to continue to remain in place in 2016, management guided for
mid-teen sales growth and further margin expansion.
Chr. Hansen reported first quarter results which exceeded expectations, with 14% organic sales growth and 31% profit growth. The company raised
its 2016 organic sales growth guidance as a result and now expects 9-11% growth.
%
contribution
% average
weight
tesdfasdfsdf
0.43
Gemalto N.V.
0.27
Straumann Holding AG
0.20
Ambu A/S Class B
0.13
Chr. Hansen Holding...
0.12
Temenos Group AG
0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5
%
performance
tesdfasdfsdf
tesdfasdfsdf
2.49
17.55
3.29
8.30
1.68
10.92
5.23
2.00
4.76
0.89
01 234 56
024681012141618
20
TOP 5 QUARTERLY DETRACTORS
%
contribution
% average
weight
tesdfasdfsdf
Wirecard AG
-1.78
-1.58
STRATEC Biomedical AG
-1.17
Hikma Pharmaceutica...
-0.88
SimCorp A/S
-0.71
JUST EAT plc
-1.8 -1.6 -1.4 -1.2
-1 -0.8 -0.6
%
performance
tesdfasdfsdf
tesdfasdfsdf
5.45
-28.39
4.61
-30.14
4.66
-20.01
3.84
-21.98
2.22
-28.96
-2-10123456
RECENT PORTFOLIO CHANGES
A number of changes were made to the portfolio.
% weight
7.36
5.51
5.23
4.57
4.52
France
Denmark
Switzerland
United Kingdom
France
Health Care
Materials
Information Technology
Health Care
Health Care
Data on holdings is provided for information purposes only and is not a recommendation to buy or sell the
securities shown. Data on holdings is subject to change and excludes cash and cash equivalents. Past
performance is no guarantee of future results.
Please see important information on final page
Source: Comgest/FactSet, unless otherwise stated
Other performance detractors included Hikma Pharmaceuticals, which finalised the transformational acquisition of Boehringer Ingelheim’s US
generics activities. While 2016 will be a transitional year for Hikma, this acquisition should support solid future sales growth thanks to a very
strong pipeline of product launches.
-30
-25
-20-15-10-50
TOP 5 HOLDINGS AS AT QUARTER END
Sartorius Stedim Biotech S.A.
Chr. Hansen Holding A/S
Temenos Group AG
Hikma Pharmaceuticals Plc
Eurofins Scientific Societe...
Wirecard, Europe’s leading online payment processor, was a major performance detractor. Its share price fell sharply on the back of a report from
unidentified and anonymous sources. The report looks suspicious, relating mainly to old allegations (2005-2010) that had been cleared in the past.
Wirecard’s management subsequently denied all claims officially. The nature of Wirecard's business (internet based with a disparate client base)
lends itself to attacks which can be difficult to verify. As in the past we have found limited real ground for concern in these accusations but remain
extremely vigilant.
We initiated a position in Domino’s Pizza Group, the clear market leader in the UK pizza home delivery and takeaway market. A combination of new
store openings, LFL growth and operational gearing should drive low-mid teen EPS growth in the medium term.
We sold Zodiac, as the turnaround of its Aircraft Interior activities is longer and more costly than expected, therefore the group’s earnings profile
has become fairly uncertain, and took profits in Stedim. Our existing positions in Essentra, Straumann, Just Eat and Ingenico were reinforced.
The views expressed in this fact sheet are those of the portfolio manager at the time of preparation. They may be subject to change and should not be interpreted as investment advice.
All information and performance data is as of 31 March 2016 and is unaudited (unless otherwise stated)
COMGEST GROWTH MID-CAPS EUROPE | 31.03.2016 | page 2 of 4
COMGEST GROWTH MID-CAPS EUROPE
31 March 2016
Quarterly Reporting
OUTLOOK
PORTFOLIO DATA
Earnings estimates for European equities have continued to be revised
downward: consensus now expects less than 2% earnings per share
growth in 2016 for the broader index, largely reflecting subdued
external macro-economic factors. As a result and as always, we prefer
to focus on businesses that can deliver growth despite, and not thanks
to, the economic environment. At this stage of the year, 2016 looks
similar to 2015 for a number of portfolio companies, at least at
constant currencies. Growth should be delivered through market share
gains in generally growing markets thanks to the holdings’ competitive
advantages (brands, unique business models and innovative molecules
to name a few). In addition, we expect your portfolio holdings to
continue to make self-financed bolt-on acquisitions, whose
contribution to value creation over the long run is sometimes underappreciated. As for currencies, based on current rates, they have
become a slight headwind for portfolio earnings in Euro, compared to
a tailwind last year. When share prices decline while portfolio
earnings continue to increase, the valuation adjustment is made even
more quickly. As a result, the premium necessary to buy quality stocks
with sustainable growth prospects has narrowed.
SECTOR BREAKDOWN
CURRENCY BREAKDOWN
% weight
Information Technology
Health Care
Consumer Discretionary
Materials
[Cash]
Industrials
relative to index
31.5
31
18.3
9.8
7.4
2
+25.7
+25.4
-0.9
-2.4
+7.4
-19.4
% weight
EUR
GBP
DKK
CHF
HKD
USD
relative to index
39.9
33
12.2
9.5
3.6
1.8
-5.2
+0.3
+7.2
-0.8
+3.6
+1.6
Breakdown based on MSCI sector classification.
COUNTRY BREAKDOWN
% weight
United Kingdom
France
Germany
Denmark
Switzerland
[Cash]
Hong Kong
Netherlands
Italy
United States
relative to index
30.6
17.6
14.6
11.3
8.8
7.4
3.4
2.8
2
1.6
-1.8
+3.1
+5.3
+6.3
-1.5
+7.4
+3.4
-1.9
-1.9
+1.6
The views expressed in this fact sheet are those of the portfolio manager at the time of
preparation. They may be subject to change and should not be interpreted as investment advice.
Please see important information on final page
Source: Comgest/FactSet, unless otherwise stated
All information and performance data is as of 31 March 2016 and is unaudited (unless otherwise stated)
COMGEST GROWTH MID-CAPS EUROPE | 31.03.2016 | page 3 of 4
COMGEST GROWTH MID-CAPS EUROPE
31 March 2016
Quarterly Reporting
INFORMATION
Legal Structure
Investment Manager
Countries registered for sale
Initial NAV
Contact for subscriptions and redemptions
Cut-off
A sub-fund of Comgest Growth plc, an openended umbrella-type investment company
with variable capital and segregated liability
between sub-funds incorporated in Ireland
UCITS IV compliant
Comgest Asset Management International Ltd
(Regulated by the Central Bank of Ireland)
46 St. Stephen's Green
Dublin 2, Ireland
Tel: +353 (0)1 631 0100
www.comgest.com
[email protected]
Listed on the Irish Stock Exchange
Recognised in Austria, Belgium, Finland,
France, Germany, Italy, Luxembourg,
Netherlands, Sweden, Switzerland, United
Kingdom.
EUR 10 per share on 17th May 2000
Minimum initial investment: EUR 50
Maximum sales commission: 4%
Redemption fee: None
RBC Investor Services Ireland
[email protected]
Tel.: +353 1 440 6555
Fax: +353 1 613 0401
12 noon Irish time on day D
An earlier deadline for receipt of application
or redemption requests may apply if your
request is sent through a third party. Please
enquire with your local representative,
distributor or other third party.
Investment Advisor
ISIN: IE0004766014
SEDOL: 0476601
BLOOMBERG: COMGMCA ID
Asset Class
European equity: Mid-cap
Comgest SA (Eva Fornadi, Rebecca Kaddoum
& Alistair Wittet)
Fund Codes
Management Fee
1.5% per annum of the net asset value
Dividend Policy: Capitalisation
Trading frequency
Daily, when the banks in Dublin and
Luxembourg are open for business
NAV
calculated using closing prices of D
NAV known
D+1
Settlement
D+3
RISK
The value of shares and the income from them can go down as well as up and you may get back less than the initial amount invested.
Movements in exchange rates can negatively impact both the value of your investment and the level of income received.
A more detailed description of the risk factors that apply to the fund is set out in the full Prospectus.
IMPORTANT INFORMATION
Investment involves risk. Past performance is no guarantee of future results. Indices are used for comparison of past performance only. Figures used in this factsheet are
for illustrative purposes only and are not indicative of the actual return likely to be achieved.
This document is under no circumstances to be used or considered as an offer to buy any security. Under no circumstances shall it be considered as having any contractual
value. Nothing herein constitutes investment, legal or other advice and is not to be relied upon in making an investment decision. You should obtain specific professional
advice before making any investment decision.
The fund is aimed at investors with a long-term investment horizon. Calculation of performance data is based on the net asset value which does not include any sales
commission or redemption fees. If taken into account, sales commission and redemption fees would have a negative impact on performance.
You should not subscribe into this fund without having first read the prospectus and the Key Investor Information Document ("KIID"). The prospectus, the KIIDs, the latest
annual and interim reports and any country specific addendums can be obtained free of charge from the Investment Manager or Administrator.
Further information or reporting may be available from the Investment Manager upon request.
© 2016 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its information providers; (2) may not be copied,
adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its information providers are responsible for any investment
decisions, damages or losses arising from any use of this information or any information provided in conjunction with it.
Source: MSCI.
The MSCI data is for internal use only and may not be redistributed or used in connection with creating or offering any securities, financial products or indices. Neither MSCI
nor any other third party involved in or related to compiling, computing or creating the MSCI data (the “MSCI Parties”) makes any express or implied warranties or
representations with respect to such data (or the results to be obtained by the use thereof), and the MSCI Parties hereby expressly disclaim all warranties of originality,
accuracy, completeness, merchantability or fitness for a particular purpose with respect to such data. Without limiting any of the foregoing, in no event shall any of the MSCI
Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such
damages.
Contact details for local representatives/paying agents in countries where the fund is registered for distribution are available from the Investment Manager or
Administrator and can be found in the fund documentation.
The prospectus, the KIID, the latest annual and interim reports and any country specific addendums are also available from the local representatives including For Austria: Erste Bank der österreichischen Sparkassen AG, OE 0198 0984 / Foreign Funds Services, 1100 Wien, Am Belvedere 1.
For Belgium: This factsheet is intended only for Belgian PROFESSIONAL CLIENTS (as defined in the Market in Financial Instruments Directive).
Caceis Belgium, SA, avenue Port, 86C Bte 320, B-1000 Brussels. Tel: +32 2 209 26 40. The fund may invest in other France, Luxembourg or Ireland-domiciled funds within the
Comgest range.
For Germany: Marcard, Stein & Co AG, Ballindamm 36, 20095 Hamburg.
For Switzerland: BNP Paribas Securities Services, Paris, Succursale de Zurich, Selnaustrasse 16, CH-8002 Zurich.
Please see important information on final page
Source: Comgest/FactSet, unless otherwise stated
All information and performance data is as of 31 March 2016 and is unaudited (unless otherwise stated)
COMGEST GROWTH MID-CAPS EUROPE | 31.03.2016 | page 4 of 4