The UCITS' investment objective is to seek performance through exposure to equity markets, primarily in the Eurozone, by selecting, on a discretionary basis, securities from an investment scope comparable to the MSCI EMU index.
On track with last month, European macroeconomic data performed well in February (in terms of growth in the euro zone, inflation levels, unemployment, etc), and managed to offset ambient US and European political uncertainties. European markets were up sharply over the month, while still manifesting strong sector disparities, with technology and consumer growth leading, while banking stocks were in decline. February saw the release of a wave of annual reports, offering abundant positive prospects for the current year. Tech stocks are doing well in the wake of US reports showing very good figures for Nokia, STMicroelectronics and Dassault Systèmes. Telecoms are recovering, spurred by M&A rumours (between Sprint and T-Mobile US Inc) and more robust activity. In the luxury sector, tourists are spending more, with positive seasonal reports from fashion (Ferragamo, Moncler), while shareholder movements have continued to float the sector. Financials have been impacted by European interest rate fluctuations, but annual reports have been positive for most banks (including Crédit Suisse, ABN Amro, ING and Crédit Agricole). In M&A, early this month Reckitt confirmed its offer for the US company, Mead Johnson, long coveted for its position as the world's No 2 two in milk powder and infant formula. Talks opened by Peugeot on February 14, hoping to buy the European arm of General Motors (Opel and Vauxhall), seem to be making progress. On the other hand, Intesa confirmed it would not proceed with its proposed buy-out of Generali. A position was initiated during the month on Munich Ré, to take of its attractive valuation compared with Allianz. So we sold Allianz, in favour of the Munich-based reinsurer.
(1) The rating grades the funds on a scale from 1 to 7. This rating system is based on the average fluctuations of the net asset value over the past five years. It corresponds to the variation range of the portfolio upwards and downwards. If the net asset value is less than 5 years old, the rating is determined by other regulatory calculation methods. Historical data such as those used to calculate the rating may not be a reliable indication of the future risk profile. The current category is neither a guarantee nor an objective. Category 1 does not signify a risk-free investment.