DNCA Invest
Value Europe

European value equities

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Portfolio managers comments
December 2018


The months go by and uncertainty remains. The much-awaited year-end rally did not take place, with European (and US) indexes hitting fresh record lows during December. The Stoxx 600 Net Return plunged 5.46% to end at -10.3% over the full-year, still penalized by fears of a recession, maintained notably by a weakening in economic indicators in the eurozone and in China, and the US-China trade war. The ongoing fall in oil prices (now below $60/b, despite an OPEC agreement on production), political uncertainty (postponed vote on Brexit, conciliation on Italian budget, social crisis in France)...

Isaac Chebar - Don Fitzgerald - Julie Arav - Maxime GenevoisText completed on 2 January 2019

At 14/02/2019

NAV

94.49€

Risk indicator

Year-to-date performance

+5.48%

Annualized performance
since inception

+0.46%
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Performance 

2018

-18.16%

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Volatility over 1 year

-

Recommended minimum investment horizon

5 Years

Net assets
(At 31/01/2019)

855M€

Inception date

21/06/2016
Past performance is not an indicator of future performance
Management fees are included in performance. The performances are calculated net of any fees by DNCA FINANCE.
This is not a capital guarantee fund

Fund Managers

Isaac Chebar

Isaac Chebar holds a chemical engineering degree from the Polytechnic school of the University of Sao Paolo in Brazil.

He began his career at Société Générale managing emerging market funds and funds investing in Southern Europe. In 2000, Isaac joined Tocqueville Finance where he set up and managed Tocqueville Value Europe until 2002. He then joined Aviva asset management as head of European investments managing several discretionary funds.

He joined the DNCA Finance management team in 2007.

Don Fitzgerald

Don Fitzgerald, CFA (Chartered Financial Analyst) graduated from Trinity College Dublin.

He began his career with Citigroup in 1996 firstly in Dublin then in Frankfurt and Paris. He joined WestLB Paris as an investor in distressed debt in 2003 and Tocqueville Finance in 2007. From 2008 to August 2015 he managed the fund Tocqueville Value Europe to first decile performance, by Quantalys, in its category over 1, 3 and 5 years. May 2015 he was awarded the Silver Prize by REVENU for risk adjusted returns in the European equities segment over 3 years. Trilingual, Don worked in Dublin, Paris , London and Frankfurt.

In September 2015, he joined DNCA Finance.

Julie Arav

Julie Arav, aged 36, holds a “Master 224” degree in Banking and Finance from the University of Paris-Dauphine. She began her career in the Equity Research department at Ixis Securities in 2006 (later Natixis) as an analyst on European utilities sector stocks.

She joined Kepler Capital Markets as an equity research analyst in 2010, continuing to cover the utilities sector with a focus on French companies. Julie then moved to London in 2011 to join Barclays Capital as VP equity research analyst in the European utilities team. After three years between London and Paris, she returned to Kepler Cheuvreux in 2014 as a senior equity research analyst on the European utilities sector.

Julie joined DNCA Finance on February 2018 as a generalist financial analyst with the aim of extending the analysis and screening scope to select stocks for investments in the portfolios or for stock-picking opportunities with a value and contrarian approach.

Maxime Genevois

Maxime Genevois, CFA (Chartered Financial Analyst), graduated from Toulouse Business School in 2015.

After several internships in financial analysis at DNCA Finance, Financière Arbevel and Rothschild & Cie Gestion, he joined the DNCA Finance management team in August 2015.

Performances

Fund evolution
Performance over the year

Inception date : 21/06/2016

PerfAt 14/02/2019
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YTD

DNCA Invest Value Europe+5.48%
Stoxx Europe 600 NR+7.91%
Simulator
(1) Data are calculated from 21/06/2016

Briefly

The Sub-Fund will at all times invest at least two-thirds of its total assets in equities of issuers having their registered office in Europe or exercising the preponderant part of their economic activities in Europe. The Sub-Fund's investment strategy relies on a active discretionary management using a stock picking policy. The main investment criteria are the market assessment, the issuer's financial structure, the current and forecast yield rate, management quality and the issuer's market position. The investment sectors targeted by the Investment Manager are not restricted, including with regard to new technology stocks.

What objective?

The fund seeks to outperform the Stoxx Europe 600 Net Return, over the recommended investment timeframe of five years.

What breakdown?

- European Equities or related financial derivatives instruments (such as CFD or DPS): 75% to 100%,
- Non-European equities: 0% to 10%,
- Debt instruments including money market instruments in case of adverse market conditions: up to 25%,
- Other istruments: 0 to 25%,
- up to 10% in units and/or shares of UCITS and/or AIFs.
The Sub-Fund may invest in securities denominated in any currency. However non-base currency exposure may be hedged back to the base currency to moderate currency exchange risks. More specifically, futures and currency forwards may be used for that purposes.
Exchange traded or OTC derivatives (other than CFD and DPS) can represent up to 40% of the Sub-Fund's assets, including but not limited to, futures contrats and non complex options negociated on regulated markets for the purpose of hedging or increasing equity exposure without seeking overexposure.

For what type of investor?

For the investor who wants to invest in European equities while minimising risk in this asset class.

Which characteristics?

Pricing : Daily
Fund Legal Type : SICAV mutual fund governed by Luxembourg law
Country Of Domicile : LU
Min Subscription Amount :
Nil (Share B, Share N, Share ND)
2500 (Share AD, Share A, Share H-A (USD))
200000 (Share I, Share H-I (USD), Share ID)
Min Subscription Shares :
None (Share B, Share AD, Share A, Share I, Share H-I (USD), Share H-A (USD), Share N, Share ND, Share ID)
Subscription Fees : 2% max
Performance fee : 20% of the positive performance net of any fees above Stoxx Europe 600 NR with High Water Mark

What taxation?

This fund is eligible for French PEA personal equity plans. Please consult your usual financial advisor for further information.

Legal information

The above information is not a confirmation of any transaction and does not comprise investment advice. Past performances are not a reliable indicator of future performances. Management fees are included in performances. Access to products and services presented may be restricted regarding certain persons or countries. Tax treatment depends on the individual situation of each investor. For full information regarding strategies and fees, please refer to the prospectus, KIID documents and other regulatory information available on this website or free of charge on demand from the investment management company’s registered offices.