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