edm strategy factsheet
DESCRIPTION
1-Consistent returns above benchmark (+6% annual outperformance) 2-Very small volatility for an equity fund (-4% annual bellow benchmark) 3-Excellent relative performance throughout the financial crisis (2007-2011) 4- Stable investment philosophy all over 23 years 5-Unique and tested investment process developed by an experienced management team 6-Very high quality (ROE) and liquid concentrated portfolio 7-Defensive strategy: focus on "ensured growth" without leveraged or cyclical sectors 8-Portfolio valuation at historial minimum levels 9-Poor overlapping and low correlation with other fund managers 10-Complementary with other equity stylesTRANSCRIPT
EDM StrategyEuropean Equities
Return Date: 31/01/2012
Portfolio Date: 30/09/2011
Historical Performance vs. Benchmark
Time Period: 01/01/2000 to 31/01/2012
2000 2002 2004 2006 2008 2010 201228,0
37,0
46,0
55,0
64,0
73,0
82,0
91,0
100,0
109,0
118,0
127,0
EDM Strategy STOXX 50 EURO STOXX 50
Returns
Ret
urn
YTD 1 year 3 years 5 years 7 years 10 years 15 years 20 years-20,0
-15,0
-10,0
-5,0
0,0
5,0
10,0
15,0
EDM Strategy STOXX 50 EURO STOXX 50
Statistical Risk
1 year 3 years 5 years 7 years 10 years 15 years 20 years
Alpha
Beta
Std Dev
Correlation
Sharpe Ratio
Sortino Ratio
0,19
0,80
3,97
0,89
-0,12
-0,16
4,71
0,73
12,49
0,92
0,53
0,84
4,82
0,77
13,30
0,92
-0,10
-0,14
5,83
0,77
12,28
0,91
0,17
0,22
3,53
0,74
13,04
0,90
0,17
0,23
1,82
0,66
13,37
0,82
0,12
0,17
2,14
0,66
13,12
0,80
0,23
0,32
5 Years Risk-Reward
Time Period: 01/02/2007 to 31/01/2012
Ret
urn
Std Dev0,0 4,0 8,0 12,0 16,0 20,0 24,0 28,0
-13,0
-11,0
-9,0
-7,0
-5,0
-3,0
-1,0
1,0 EDM Strategy
STOXX 50
EURO STOXX 50 PR EUR
Europe Large-Cap Growth Equity (Category)
Fund´s Manager Comment
Our fund’s consistent returns during the last bear market come from its lack of exposure to
financial and cyclical sectors, such as automobiles and commodities, which dropped between 20%
and 30%. On the other hand, some of our heavily weighted sectors like food or pharmaceutical
ended 2011 delivering pretty good results.
The adverse European macroeconomic environment contrasts with our companies solid results,
which will end 2011 with profits growth above 10%; main reasons being their high exposure to
emerging markets and their brand´s strengths. In December, we increased our position in Danone,
Air Liquide and Straumann, all of them high quality companies whose prices are very attractive. In
fact, EDM Strategy has reached minimun valuation levels since launch (P/E 2011: 12.9)
Fund´s Data
Inception Date
NAV (Daily, €)
Fund Size (€)
Base Currency
ISIN
31/10/1990
265,45
65.897.310,00
Euro
LU0028445327
SnapshotName
Global Category
Custodian / Administrator
Auditor
Domicile
UCITS
EDM Intl Strategy
Europe Equity Large Cap
RBC Dexia Investor Services Bank S.A.
Deloitte S.A.
Luxembourg
Yes
EDM Asset Management www.edm.es/en -1- Tel. +34914110398 +34934160143 [email protected]
EDM StrategyEuropean Equities
Return Date: 31/01/2012
Portfolio Date: 30/09/2011
Holdings-Based Style
Mic
roSm
all
Mid
Larg
eG
iant
Deep-Val Core-Val Core Core-Grth High-Grth
EDM Strategy 30/09/2011
STOXX 50 31/01/2012
EURO STOXX 50 31/01/2012
Europe Large-Cap Growth Equity (Category) 31/01/2012
Style Box
Morningstar Equity Style Box™
LargeM
idSm
all
Value Blend Growth
Market Cap %
Market Cap Giant 40,1
Market Cap Large 12,8
Market Cap Mid 42,7
Market Cap Small 4,3
Market Cap Micro 0,0
Equity Sectors vs benchmarks
Portfolio Date: 30/09/2011
Strategy Stoxx 50Euro
Stoxx
Basic Materials
Consumer Cyclical
Financial Services
Real Estate
Consumer Defensive
Healthcare
Utilities
Communication Services
Energy
Industrials
Technology
3,84
5,00
4,21
0,00
17,38
26,53
0,00
5,53
0,00
25,06
12,44
7,37
3,48
19,30
0,00
16,30
18,55
3,99
9,10
14,35
5,04
2,52
5,93
9,52
23,21
0,98
9,74
7,56
9,06
9,21
9,87
9,81
5,12
Equity Country Exposure
%
Denmark 7,4
France 21,3
Germany 13,2
Spain 15,7
Switzerland 14,6
United Kingdom 27,8
Portfolio Holdings%
Roche Holding AG 7,1
Capita Group (The) PLC 7,0
Tesco PLC 6,3
Danone 6,2
Sap AG 5,9
Grifols SA 5,0
Eutelsat Communications 4,4
Bolsas y Mercados Espanoles 4,2
Coloplast 4,1
Essilor International 3,9
Brenntag AG 3,8
Industria de Diseño Textil,S.A."inditex" 3,6
Wincor Nixdorf Aktiengesellschaft 3,5
HomeServe PLC 3,3
Novo Nordisk A/S 3,2
Straumann Holding AG 3,2
Other 25,2
Total 100,0
Equity Sectors%
Basic Materials 3,8
Consumer Cyclical 5,0
Financial Services 4,2
Real Estate 0,0
Consumer Defensive 17,4
Healthcare 26,5
Utilities 0,0
Communication Services 5,5
Energy 0,0
Industrials 25,1
Technology 12,4
Portfolio construction
• Long-only traditional investment style (bottom-up)
• Stock picking. No benchmarking (low overlapping against its benchmark)
• Long-term investment horizon (5 years on average)
• Low turnover (15% average for the last 6 years)
• High liquidity (92% of the portfolio can be sold within one trading day)
• Restricted investment universe: only 100 companies globally
• Concentrated portfolio, maximum 30 companies
• Always fully equity invested (competition among stocks)
• 100% currency hedged (we do not predict currency fluctuations)
Stock picking methodology
•Focus on understandable and predictable businesses at reasonable prices
• Management quality & integrity are crucial for us
• Demanding criteria: High quality of the business (ROE = 31%)
• Sustainable EPS growth (11%)
• Low debt balance-sheet (Net Debt/EBITDA = 0,9)
• Recurrent and solid cash-flows
• Companies focused on emerging markets to generate growth (1/3 Sales)
• Following certain long-term Macro-trends
• Lack of sectors whose profits are not easily foreseen
EDM Asset Management www.edm.es/en -2- Tel. +34914110398 +34934160143 [email protected]