Continued outperformance as a result of satisfactory half year results for the portfolio over the summer


Fund Commentary
14 Sep 2016


August continued the upward trend initiated in July on the back of satisfactory global half year results and thin trading volumes. After advancing 3.73% in July, the EuroStoxx 600 Net Return ended the month up 0.74%, reducing the year to date decline to –4.71%.

In that context, the Fund managed to outperform with a +1.04% return in August, outperforming its benchmark by 0.30% for the month. Year to date, the Fund’s performance stands at +4.21%, translating into an 8.92% outperformance versus its benchmark index.

Mersen was the most significant contributor, followed, this month, by Tarkett and Komax. At the other end of the spectrum, GfK, Saf-Holland and Kardex were the three main detractors.

Some key points or data will need to be monitored in the coming weeks: any change of tone from the Fed and a potential interest rate increase before year end, GDP releases and employment data in the US, an ECB decision to extend its QE program, an EU project to be presented by European political leaders to cope with the Brexit vote and reinforce European cohesion, and finally OPEC’s decision with regards to oil production.

The Investment Adviser will continue to deploy the same strategy and try to exploit market volatility that may arise as a consequence of those decisions.


The views and statements contained herein are those of Pascal Investment Advisers SA in their capacity as Investment Adviser to the Fund as of 8/09/16 and are based on internal research and modelling.