Conseq Invest New Europe Equity
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Monthly factsheet – October 2019 CONSEQ INVEST neW EUROPE EQUITY Risk profile 1 2 3 4 5 6 7 basic information about the company basic information about the fund investment company: Conseq Invest plc fund manager: Martin Pavlík, Jan Vedral investment manager: Conseq Funds investiční společnost, a.s. ISIN: IE0031283306 depositary: BNP Paribas Securities Services Dublin Branch formation date, reg. capital: 11 September 2000; CZK administrator: BNP Paribas Fund Services Dublin Limited entry fee: max 5% of investment value auditor: PricewaterhouseCoopers fixed management fee: 1.15% (0,6% for I class) of avg invest. value investment objective of the fund The fund’s objective is to make high capital returns, measured in Czech crowns, on its investments in a portfolio comprising Central European shares and to outperform a benchmark composed of Poland’s WIG30 Index (40%), the Czech PX Index (25%), the Hungarian BUX Index (15%) and the index of south-eastern countries SETXEUR (20%), all with an approximately five-year investment horizon. INVESTMENT MANAGer´s REPORT Key statistics performance in the period endinG 30. 9. 2019 NAV per share 245.0396 CZK period fund (class a) benchmarK fund volume 3 656.81 mil. CZK 1m –0.62 % 1.54 % holdings 54 3m –3.43 % –1.20 % ongoing charges 1.62 % 6m –2.65 % –2.40 % maximum performance (5y) 259.45 % 9m 1.15 % 0.33 % minimum performance (5y) –51.11 % 1y 2.81 % 4.53 % dividend yield 2.49 % 3y 17.69 % 19.77 % volatility 12.24 % 3y p.a. 5.58 % 6.20 % average p/e 16.08 5y 30.05 % 22.96 % average p/b 1.13 5y p.a. 5.40 % 4.22 % sharpe ratio 0.23 10y 52.95 % 15.70 % fund alpha 3.28 % 10y p.a. 4.34 % 1.47 % fund beta 0.94 total 145.04 % 82.00 % total p.a. 4.79 % 3.18 % top holdinGs fund performance 300 60% security currency share 250 45% avast plc CZK 6.69 % 200 30% KrKa EUR 5.88 % bank pekao s.a. PLN 5.30 % 150 15% erste Group bank aG CZK 5.19 % 100 0% Komerční banka, a. s. CZK 4.44 % 50 -15% ČeZ, a. s. CZK 4.14 % 0 -30% NOVA LJUBLJANSKa BANKa d.d., ljubljana EUR 3.90 % -50 -45% mol hungarian oil and Gas company HUF 3.83 % -100 -60% powszechny Zaklad ubezpiecze PLN 3.63 % 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 central european media ent. CZK 3.19 % Left axisLevá - NAV/share osa - hodnota (line) (cena) FondFund Right axisPravá - performance osa - výkonnost perv roceyear (bar) Benchmark Monthly factsheet – October 2019 CONSEQ INVesT neW EUROPE EQUITY structures of the fund portfolio sector allocation territorial structure 34,3% Banks 34,5% 33,3% Czech republic 25,6% Insurance 5,2% 6,1% 7,8% Real Estate 0,0% Hungary 0,0% 15,1% Pharmaceuticals 8,9% 7,1% Poland 31,8% Consumer Goods & Services 17,1% 37,0% 2,6% 8,1% 14,0% Telecommunication Services 5,5% Slovenia 7,0% Media 5,3% 2,1% Romania 7,7% Information Technology 7,4% 8,9% 7,2% 2,9% Metals & Mining 1,0% 2,2% Croatia 5,8% Industrials 2,5% 0,3% 0,0% 7,6% Serbia & Bulgaria 0,7% Chemicals & Petrochemicals 15,7% Utilities 7,2% 2,1% 7,4% Austria Other 0,8% 0,4% Cash 0,4% Cash 0% 10% 20% 30% 40% 0% 10% 20% 30% 40% 50% Share in NAV Share in benchmark Share in NAV Share in benchmark development in central european marKets in previous month index performance in local currency performance in cZK PX (czech) 0.88 % 0.88 % WiG 30 (poland) 0.86 % 2.49 % BUX (hungary) 3.84 % 4.54 % SETXEUR (south-eastern europe) –0.34 % –1.51 % comments on fund portfolio developments The Fund unit value fell by 0.62% month on month in October. Equity markets thrived in all regions in October. This sound performance was boosted by central banks’ ongoing relaxed monetary policy rhetoric, a short-term ceasefire on the front line in the trade wars, the relative calming of the situation at the Turkish-Syrian border, and good corporate performance in the third quarter of this year. Following Fed governor Jerome Powell’s announcement that the US monetary authority would soon start expanding its balance sheet by buying assets, and subsequently the Fed’s 0.25 percentage point cut in the base interest rate and the release of US companies’ very good earnings results, shares in US corporations climbed by 2% (S&P500 index). The prevailing buoyant global sentiment, compounded by a fall in the risk of a hard Brexit and attractive value indices, was also exploited by European company shares, which rose by 0.9% month on month (DJ STOXX 600 index). The lower liquidity of Central European markets in October and problems specific to the Polish banking system hobbled local stock market gains. The Polish market (+0.9% WIG30 index) continued to be weighed down by the European Court of Justice’s decision on compensation for those holding mortgages denominated in Swiss francs, the refund of charges linked to the premature termination of consumer loans, and sale of the Polish bank mBank by its parent, Commerzbank. The telecommunications sector flourished, with most of the capital expenditure planned here having been invested in recent years and profitability indicators expected to improve in the future on the back of a slight rise in tariff prices. Consumer sector shares, such as those of LPP or CCC, did not do so well. On the Prague Stock Exchange, shares in Avast (+5.2%) and Moneta (+4.3%) performed solidly. Media group CME (TV NOVA’s owner) saw its shares tumble by 5% when the acquisition price offered by PPF fell short of market expectations. In response to the problems of the Polish banking sector, we began to gradually nudge up our interest in the local banks. We believe that, in certain cases, the reactions were overblown and, consequently, there was a disconnect between the prices of shares and their fundamental values. On this basis, we increased our shareholdings in Alior Bank and Bank Millennium, as well as in Erste Bank, Komerční banka and Moneta. For the most part, these purchases were financed by the sale of Romanian shares, which have done extremely well this year (BET up by 29% since the beginning of the year). This partial profit-taking also took into account Romania’s mounting macroeconomic risks resulting from the growing imbalance between the central government budget and the current account of the balance of payments. At the end of October, on account of the specific stock mix Hungarian, Polish and Croatian shares were most underweight in the Fund (relative to the benchmark), whereas Slovenian and Czech shares continued to be overweight. Disclaimer: Before deciding to invest in a mutual fund, potential investors should acquaint themselves with the fund‘s key information and rules (prospectus). The information contained in this report is for advisory purposes only and is not intended to replace the key information or rules (prospectus) or to provide a comprehensive summary thereof. Information in this document reporting on past prices and yields cannot be regarded as an indicator of future developments. The value of investments in mutual funds may both increase and/or decrease over time and neither Conseq Investment Management, a.s. nor any other person guarantees a return on amounts originally invested. Furthermore, they do not assume liability for actions taken on the basis of information presented in this document or for the accuracy and completeness of such information, and recommend that investors consult their investment plans with professional advisers. More information, key information, a copy of the fund‘s rules (prospectus) and the latest annual and semi-annual reports are available (free of charge) from the registered office of Conseq Investment Management, a.s. or from the website at www.conseq.cz. for more information, please, contact us on Phone number: 225 988 225 or e-mail: [email protected] website: www.conseq.cz.