PARVEST HUMAN DEVELOPMENT

Transcription

1 PARVEST HUMAN DEVELOPMENT EQUITY MONTHLY REPORT FOR PROFESSIONAL INVESTORS July 2018 PERFORMANCE OVERVIEW Performance at the end of July 2018 July 3M YTD Since (Gross of fees - %) 12M 24M* 36M* 60M* inc.,** Parvest Human Development MSCI World (NR) Excess return Performance History (%) - Full year Parvest Human Development MSCI World (NR) Excess return Performance History (%) - July to July Parvest Human Development MSCI World (NR) Excess Return Risk indicators (annualised) Fund volatility (%) MSCI World (NR) Tracking error (%) Information ratio W 52W 24M 36M 60M Since inc.,** All figures gross of fees (in EUR) * annualised performance **first NAV date: 15/04/2015 annualised Past performance or achievements are not indicative of current or future performance.

2 Monthly Report PARVEST July MARKET REVIEW In July, investors were once again forced to keep a watchful eye more on political events than on economic factors. As had been the case for several months, financial markets were driven by statements from Washington and reactions from the US s trading partners. After a first half of the month in which the trade situation appeared to worsen particularly following new US announcements on 10 July, which triggered a reaction from China and led the president of the European Council to call on parties to avoid conflict and chaos at a Beijing summit hopes were raised by the surprise agreement on 25 July between the US and the European Union, establishing a working group in favour of freer transatlantic trade, reducing the risk that tariffs will be slapped on European cars. Under this environment, the MSCI AC World index rallied by 2.9% in July (in US dollar terms). In the US, the S&P 500 rose by 3.6%, driven by the solidity of the economy and a promising start to the earnings reporting season, with an extra boost from corporate tax cuts. In the Eurozone, the EuroStoxx 50 rallied by 3.8%, driven by the financial sector against a backdrop of higher long-maturity bond yields, energy and manufacturing stocks (carmakers in particular, after the Washington agreement). In Japan, the Nikkei 225 rose by just 1.1% with the sectors exposed to domestic demand declining.

3 Monthly Report PARVEST July FUND PERFORMANCE 1. Relative to MSCI World Under this environment, the fund outperformed the MSCI World Index and performed in line with its reference universe. The performance against the MSCI World has been positively impacted by both favorable sector allocation and stock selection. In terms of sector allocation, our structural overweight position in Health Care, and our underweight position in Technology and Consumer Discretionary had the largest positive impact to the performance. The stock selection was particularly favorable within Healthcare (Pfizer, Astrazeneca, Biogen, Gilead, Merck), more than offsetting the negative contributions within Consumer Discretionary (Valeo) and Financials (RSA Insurance). 2. Fund Performance (absolute contribution to return) Factors contributing to performance: Sector specific factors (overweight Healthcare, underweight Technology and Consumer Discretionary) Stock specific factors Best performers: Pfizer AstraZeneca Facebook (lack of) Biogen Gilead Xylem Factors detracting from performance: Stock specific factors Sector specific factors (underweight Financials) Worst performers: Valeo AEON Alphabet (lack of) Edwards Lifesciences East Japan Railway

4 Monthly Report PARVEST July Terumo PORTFOLIO ACTIVITY During the month of July we have partially sold our position in healthcare medical devices company Edwards Lifesciences after solid stock performance. We also started to trim our position in Elior as we became less confident with the investment case. OUTLOOK & POSITIONING Financial markets remained agitated at the start of summer, as investors continued to be unsettled on many fronts. The prevailing nervousness has been driven by statements by the US president (regarding NATO partners financial commitment, Iran, Russia and China) and, of course, US trade policy. Global economic growth faces threats created by the implementation of tariffs on Chinese products and the prospect of further announcements (new taxes, reprisals and WTO appeals) in the coming months. With this in mind, China s measures to support its domestic economy (and thus address US threats more defensively rather than through escalation), is good news. Likewise, the US-EU agreement, which clears the way for new talks on several sectors, is a constructive response after weeks of tensions. The protectionist risk is nonetheless still present and it has been emphasized in particular by central banks, which, nonetheless, have chosen to stick to their recent decisions to continue, or begin, normalizing their ultra-accommodative monetary policies. The global economy looks solid enough to withstand the headwinds that have arisen, but it is not unsinkable. Other pitfalls (the highly confusing Brexit situation after the resignation of hardliners, and noisy bargaining over Italian fiscal decisions) have emerged and investors will have to avoid them. Although their world has become a little less ideal than in 2017, fundamentals remain favorable, as seen in solid corporate earnings reports. For more information, please contact: Ramon Esteruelas Senior Investment Specialist Global, Specialist & Thematic Equities ramon.esteruelas@bnpparibas.com PERFORMANCE DETAILS Classic Capitalisation Privilege Capitalisation I Capitalisation LU LU LU Total AUM as of July 31 st 2018: EUR 156M Source: ClientPerf

5 Monthly Report PARVEST July Performance at the end of July 2018 July 3M YTD Since Classic Share (Net of fees - %) 12M 24M* 36M* 60M* inc.,** Parvest Human Development MSCI World (NR) Excess return Performance History (%) - Full year Parvest Human Development MSCI World (NR) Excess return Performance History (%) - July to July Parvest Human Development MSCI World (NR) Excess Return Risk indicators (annualised) Fund volatility (%) MSCI World (NR) Tracking error (%) Information ratio All figures net of fees (in EUR) * annualised performance **first NAV date: 15/04/2015 annualised Ongoing charges: 1.97 % Past performance or achievements are not indicative of current or future performance. 36W 52W 24M 36M 60M Since inc.,** Performance at the end of July 2018 July 3M YTD Since I Share (Net of fees - %) 12M 24M* 36M* 60M* inc.,** Parvest Human Development MSCI World (NR) Excess return Performance History (%) - Full year Parvest Human Development MSCI World (NR) Excess return Performance History (%) - July to July Parvest Human Development MSCI World (NR) Excess return Risk indicators (annualised) Fund volatility (%) MSCI World (NR) Tracking error (%) Information ratio All figures net of fees (in EUR) * annualised performance **first NAV date: 29/05/2015 annualised Ongoing charges: 0.96 % Past performance or achievements are not indicative of current or future performance. 36W 52W 24M 36M 60M Since inc.,**

6 Monthly Report PARVEST July DISCLAIMER BNP Paribas Asset Management France, the investment management company, is a simplified joint stock company with its registered office at 1 boulevard Haussmann Paris, France, RCS Paris , registered with the Autorité des marchés financiers under number GP This material is issued and has been prepared by the investment management company. This material is produced for information purposes only and does not constitute: 1. an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or 2. investment advice. This material makes reference to certain financial instruments authorised and regulated in their jurisdiction(s) of incorporation. No action has been taken which would permit the public offering of the financial instrument(s) in any other jurisdiction, except as indicated in the most recent prospectus and the Key Investor Information Document (KIID) of the relevant financial instrument(s) where such action would be required, in particular, in the United States, to US persons (as such term is defined in Regulation S of the United States Securities Act of 1933). Prior to any subscription in a country in which such financial instrument(s) is/are registered, investors should verify any legal constraints or restrictions there may be in connection with the subscription, purchase, possession or sale of the financial instrument(s). Investors considering subscribing to the financial instrument(s) should read carefully the most recent prospectus and Key Investor Information Document (KIID) and consult the financial instrument(s ) most recent financial reports. These documents are available on the website. Opinions included in this material constitute the judgement of the investment management company at the time specified and may be subject to change without notice. The investment management company is not obliged to update or alter the information or opinions contained within this material. Investors should consult their own legal and tax advisors in respect of legal, accounting, domicile and tax advice prior to investing in the financial instrument(s) in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Please note that different types of investments, if contained within this material, involve varying degrees of risk and there can be no assurance that any specific investment may either be suitable, appropriate or profitable for an investor s investment portfolio. Given the economic and market risks, there can be no assurance that the financial instrument(s) will achieve its/their investment objectives. Returns may be affected by, amongst other things, investment strategies or objectives of the financial instrument(s) and material market and economic conditions, including interest rates, market terms and general market conditions. The different strategies applied to financial instruments may have a significant effect on the results presented in this material. Past performance is not a guide to future performance and the value of the investments in financial instrument(s) may go down as well as up. Investors may not get back the amount they originally invested. The performance data, as applicable, reflected in this material, do not take into account the commissions, costs incurred on the issue and redemption and taxes. All information referred to in the present document is available on