SKANDIA GLOBAL FUNDS PLC - Fidelity Investments

Skandia Global Funds plc
Interim Report and Unaudited Financial Statements for the period ended 30 June 2012
SKANDIA EUROPEAN BEST IDEAS FUND
INVESTMENT ADVISER’S REPORT FOR THE PERIOD ENDED 30 June 2012
Skandia European Best Ideas Fund – BlackRock Investment Management (UK) Limited,
BNY Mellon Asset Management International Limited,
Danske Capital, a division of Danske Bank A/S,
Financière de L’Echiquier,
Jupiter Asset Management Limited,
Liontrust European Investment Services Limited,
Mandarine Gestion,
Odey Asset Management LLP,
SVM Asset Management Limited,
Wellington Management Company, LLP.
Below is a report from the Investment Advisers of the Skandia European Best Ideas Fund for the first six months of 2012.
The Skandia European Best Ideas Fund was launched on 10 April 2008 with a starting Net Asset Value per share of EUR 10.00.
Investment Adviser’s Commentary
On the 13 April 2012 –Blackrock Investment Management (UK) Limited was appointed as an investment adviser for the fund.
The Skandia European Best Ideas Fund outperformed its benchmark, the MSCI Europe Index, for the first half of 2012. The Fund
gained +7.35%, compared to +4.75% for the benchmark index.* The Fund outperformed in the first quarter, with strong gains and
well ahead of both its benchmark and peer group. As would be expected given this backdrop the stocks that were the main
contributors to performance were economically sensitive in nature – Infineon and fellow German stocks, Sky Deutschland and
Lanxess led the way. At the country level, the Fund benefited from an overweight position in Germany and an underweight
position in the UK, and more importantly from strong stock picking in the UK, France, Switzerland, Germany and Spain. At the
investment adviser level, strong relative performances were delivered by Financière de L’Echiquier, Danske Capital and
Wellington Management Company LLC, while Liontrust Investment Partners LLP was the laggard.
The Skandia European Best Ideas Fund trailed its primary benchmark, the MSCI Europe Index, over the second quarter, which
was characterised by continued volatile markets in which risk-averse investors focused on perceived safe established stocks. This
did not favour the more aggressive positioning of the portfolio. Against this difficult backdrop, overall sector and country
allocation detracted from performance, as did stock selection. An underweight in financials was the only significant positive at the
sector level. Stock picking in consumer discretionary, materials and industrials also helped to partially mitigate the overall
underperformance in stock selection.
At the individual stock level, the biggest detractors were from the underperforming technology and banking sectors. In IT, shares
in Infineon were hit by investor concerns over the impact of deteriorating economic conditions on futures sales and earnings. The
stock of Barclays bank was knocked after the revelation that individuals in the bank had manipulated the benchmark Libor rate.
On a brighter note, the portfolio continued to benefit from the outperformance of its holding in Sky Deutschland, as investors
continued to be drawn by the strong prospect for the company after its victory in winning football broadcast rights in Germany.
Source as at 29 June 2012:
SVM Asset Management Limited
Wellington Management Company, LLP
Mandarine Gestion
Jupiter Asset Management Limited
Financière de L'Echiquier
Danske Capital, a division of Danske Bank A/S
Odey Asset Management LLP
Liontrust Investment Partners LLP
BNY Mellon Asset Management International Limited
Blackrock Investment Management (UK) Limited (from 13 April 2012)
Acadian Asset Management, LLC (until 13 April 2012)
* Performance figures refer to Class A shares and are sourced from Financial Express. Calculation basis: bid-to bid, net of fees, gross
income reinvested in Fund base currency (Euros). Index returns is net, in Euros.
References to benchmarks are for illustrative purposes only and are not intended to imply a performance objective. There is no
guarantee that the Skandia European Best Ideas Fund will outperform this benchmark.
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