SKANDIA GLOBAL FUNDS PLC - Fidelity Investments

Skandia Global Funds plc
Interim Report and Unaudited Financial Statements for the period ended 30 June 2012
SKANDIA SWISS EQUITY FUND
INVESTMENT ADVISER’S REPORT FOR THE PERIOD ENDED 30 June 2012
Skandia Swiss Equity Fund – Analytics Investors, LLC
Below is a report from the Investment Adviser of the Skandia Swiss Equity Fund for the first six months of 2012.
The Skandia Swiss Equity Fund was launched on 10 December 2003 with a starting Net Asset Value per share of CHF 10.00.
Investment Adviser’s Commentary
The Skandia Swiss Equity Fund outperformed its benchmark, the Swiss Performance Index (SPI), for the first half of 2012. The
Fund returned +9.41%, compared to the benchmark index which returned +5.42%.* The Fund outperformed the benchmark
during the first quarter, despite a more challenging month in March. Sector allocation and stock selection both benefited
performance, particularly in the areas of industrials (beneficial overweight), financials (positive overweight as banks rallied),
consumer staples (beneficial underweight as defensives underperformed), healthcare (underweight to this defensive sector) and
to a lesser extent IT (beneficial overweight) which rallied worldwide. Among stocks, being underweight defensive
pharmaceutical Novartis was the strongest contributor to returns.
The Fund’s Swiss low volatility strategy outperformed the SPI in the second quarter, even after the sharply increased appetite for
risk by investors’ in June. Beta positioning was the primary driver of the outperformance, as low beta stocks outperformed high
beta stocks by around 18%. Sector selection was also moderately positive, although this was an outcome of the focus on lower
risk names rather than specific sector allocation decisions. The Fund’s Swiss low volatility strategy performed in line with
expectations during the second quarter as it tends to do particularly well in choppy markets characterised by periods of both risk
seeking and risk avoiding behaviour.
* Performance figures refer to Class A shares and are sourced from Morningstar. Calculation basis: bid to bid, net of fees, gross
income reinvested in Fund base currency (Swiss Francs).
References to benchmarks are for illustrative purposes only and are not intended to imply a performance objective. There is no
guarantee that the Skandia Swiss Equity Fund will outperform this benchmark.
Source: Deutsche Asset Management Switzerland & Analytic Investors, LLC, as at 29th June 2012.
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