Upload
citywirewebsite
View
1.122
Download
0
Embed Size (px)
DESCRIPTION
Citation preview
[Special Mention]
European Large Cap Equity SelectA differentiated approach to stock picking
March 2011
Investment capability overview
For professional investors
European Large Cap Equity Select European Large Cap Equity Select 2 | February 2011 |
Contacts and disclaimer on the funds’ names
● For information on the European Large Cap Equity Select products please contact:– Jean Medecin, CFA + 33 (0)6 77 83 68 46Senior Product Specialist [email protected]– Sheila Ter Laag + 33 (0)6 76 25 3064Product Specialist [email protected]
● Alternatively visit our website: www.bnpparibas-am.com
● Before 01 September 2010 the sub-funds of the SICAV BNP Paribas L1 sub-funds were formerly named Fortis L Fund
European Large Cap Equity Select European Large Cap Equity Select 3 | February 2011 |
Contents1. Overview
1. The bottom line: our key strengths2. Investment team3. Range of funds
2. Process1. Investment philosophy2. Investment process3. Risk management4. Stock selection examples
3. Performance review1. Overall performance2. Competitive positioning
4. Key points5. Appendices
1. Overview
European Large Cap Equity Select European Large Cap Equity Select 5 | February 2011 |
The bottom line: our key strengths
● Focus on long-term investment performance: emphasis on identifying long-term winners enables us to exploit opportunities that arise due to the short-termism of the market
● In-depth company analysis: internally-generated, comprehensive research and analysis by a dedicated team of research professionals enables a deeper understanding of company fundamentals and future prospects
● Peer review decision making process: adding rigour and different perspectives to the investment management process
● Differentiated approach to industry analysis: industry structure work enables us to better understand a company’s earnings profile and focus on companies that have the ability to control their own destiny
A differentiated approach to fundamental long term investment
European Large Cap Equity Select European Large Cap Equity Select 6 | February 2011 |
Investment teamPart of a well resourced investment centre
*AUM as of end January 2011- Source: BNP Paribas Asset Management
Large Cap Equity Select Small and Mid CapCountry StrategiesAndrew KingPeter Abbott
Valerie Charriere-PousseGiovanni CherubiniDaniel HemmantDaniel Hobster
Jeroen KnolOlivier Rudigoz
Niels Geypen (Risk Manager)
Damien KohlerEve Bouard
Florian CastelSilvia Hill
Jochen MatheeAliyahdin Saugi
Elaine de VillainesFiona Wills
FrancePierre Pincemaille
BelgiumChristophe d’Audoffret
NetherlandsHolger Weeda
Head: Andrew KingHead: Andrew King
Europe Equity InvestmentCentre
UK (London) basedFrance (Paris) basedNL (Amsterdam) basedGermany (Frankfurt) based
European Large Cap Equity Select European Large Cap Equity Select 7 January 2011
Research and Portfolio Management Support
Materials, Utilities18 Years Experience
Consumer Staples, Healthcare14 Years Experience
Consumer Discretionary, Telecoms
21 Years Experience
Energy3 Years Experience
Financials13 Years Experience
Consumer Staples25 Years Experience
Industrials26 Years Experience
Telecoms, Technology18 Years Experience
Senior Product Specialist16 Years Experience
Risk Manager2 Years Experience
Giovanni Cherubini Daniel Hemmant Andrew King, CIO Valerie Charriere Pousse Jean Medecin
Jeroen Knol Peter Abbott Olivier Rudigoz Niels GeypenDaniel Hobster
A team of experienced investment professionals with no formal buy-side analyst / fund managers distinction thus ensuring a better communication
Investment team
| February 2011 | 7
European Large Cap Equity Select European Large Cap Equity Select 8 | February 2011 |
Portfolio managers – Small & Mid Cap
Damien KohlerSmall and mid cap Head
16 years of experience
Eve Bouard14 years of experience
4 years of experience
Ali Yahdin Saugi
Silvia Hill15 years of experience 20 years of experience
Jochen Mathee
8 years’ experience 18 years’ experience17 years’ experience
Florian Castel Fiona WillsEliane De Villaines Lancelot
Country Funds
Christophe d’Audiffret
Pierre Pincemaille
Belgium14 years of experience
France11 years of experience
Holger WeedaNetherlands
13 years’ experience
Investment teamSharing research and expertise with a solid Europe Small & Mid Cap and Country Funds team with a broad coverage
European Large Cap Equity Select European Large Cap Equity Select 9 January 2011
Research and Portfolio Management
Materials, Utilities18 Years Experience
Consumer Staples, Healthcare14 Years Experience
Consumer Discretionary, Telecoms21 Years ExperienceEnergy
3 Years ExperienceFinancials
13 Years Experience
Consumer Staples25 Years Experience
Industrials26 Years Experience
Telecoms, Technology18 Years Experience
Giovanni Cherubini Daniel Hemmant Andrew King,
CIOValerie Charriere
Pousse
Jeroen Knol Peter Abbott Olivier RudigozDaniel Hobster
Portfolio managers – Small & Mid Cap
Damien Kohler
Small and mid cap Head16 years of experience
Eve Bouard
14 years of experience
4 years of experience
Ali Yahdin Saugi
20 years of experience
Jochen Mathee
8 years’ experience 18 years’ experience17 years’ experience
Florian Castel Fiona WillsEliane De Villaines Lancelot
Country Funds
Pierre Pincemaille
France11 years of experience
Holger Weeda
Netherlands13 years’ experience
An example of cross research: Telenet (Belgian Telephony & Internet)
Silvia Hill
15 years of experience
Christophe d’Audiffret
Belgium14 years of experience
Silvia Hill
15 years of experience
Christophe d’Audiffret
Belgium14 years of experience
Investment team
| February 2011 | 9
European Large Cap Equity Select European Large Cap Equity Select 10 | February 2011 |
● €1.3 billion* in assets● BNP Paribas L1 Equity
Europe Growth● BNL Azioni Crescita● Segregated accounts
● €1.3 billion* in assets● BNPP L1 Equity Best
Selection Europe● BNPP L1 Equity Best
Selection Euro● BNPP L1 Equity Best
Selection Europe ex-UK● Segregated accounts
High-conviction Europe growth strategy
High-conviction Europe (also Euro zone and Europe
ex-UK) strategy
Europe Growth EquitiesBest Selection Europe Equities
*AUM as of end January2011 Source: BNP Paribas Asset Management
Core Europe Equities
Core Europe (also Euro zone) strategy based on sector
neutrality and low tracking error● €6.3 billion* in assets● BNPP L1 Equity Europe● BNPP L1 Equity Euro● BNPP Actions Europe● BNPP Actions Euroland● Segregated accounts
Common investment philosophy and research process applied across all strategies
€8.9 billion* in assets under management across three families of fundsRange of funds
European Large Cap Equity Select European Large Cap Equity Select
BNP Paribas L1 Equity Best Selection Europe/Euro
BNP Paribas L1 Equity Europe Growth
BNP Paribas L1 Equity Europe/Euro
Benchmark MSCI Europe (NR) €*MSCI EMU (NR) €**
MSCI Europe (NR) € MSCI Europe (NR)€***MSCI EMU (NR) €****
Target outperformance 250–300 bp gross of fees 250–300 bp gross of fees 100–200 bp gross of fees
Tracking error target 3–6% 3–6% 2–3%
Target holdings 40–50 40–60 70–100
Sector relative weight (GICS sector level)
+/-10 percentage pts +/-10 percentage pts +/-2.5 percentage pts
Stock max overweight < 5 percentage pts < 5 percentage pts < 5 percentage pts
Cash level target <3% <3% <3%
Target turnover Less than 50% p.a. Less than 50% p.a. Less than 50% p.a.
Range of funds
11 | February 2011 |
Flagship funds characteristics
* Benchmark for BNP Paribas L1 Equity Best Selection Europe (Prior to 1 January, 2009 benchmark was MSCI Pan-Euro (NR) Index)** Benchmark for BNP Paribas L1 Equity Best Selection Euro (Prior to 1 January, 2009 benchmark was MSCI Euro (NR) Index)
*** Benchmark for BNP Paribas L1 Equity Europe **** Benchmark for BNP Paribas L1 Equity Euro here is no guarantee that the performance objective will be achieved
2. Process
European Large Cap Equity Select European Large Cap Equity Select 13 | February 2011 |
Investment philosophy
● We believe that superior long-term share price performance is driven by above-average, sustainable earnings growth. Critical determinants of performance include:
– industry structure– a company’s competitive position within that industry
● Furthermore, we seek to exploit the market’s increasingly short-term investment horizon by investing in companies when their attractive, longer-term investment attributes are masked by shorter-term trends, fashion or random noise.
The principles
European Large Cap Equity Select European Large Cap Equity Select 14 | February 2011 |
Investment philosophy
● The key to assessing the strength and sustainability of a company’s earnings profile is to understand the structure of that company’s industry. Companies that operate in well-structured industries have a greater ability to generate attractive and sustainable excess returns, and can do so with less risk
● The European Large Cap Equity Select team uses the Herfindahl-Hirschman Index (HHI*) to assess the quality of an industry’s structure. This index is used by the US Department of Justice to help “properly define and measure industry concentration”
*HHI is defined as the sum of the squares of the market shares of each individual firm and can range from <1 to 10,000, moving from a very large number of very small firms jostling for market share to a single monopolistic producer dominating the market.
The importance of industry structure in practice: the Herfindahl-Hirschman Index
“A merger is unlikely to create or enhance market power or to facilitate its exercise unless it significantly increases concentration and results in
a concentrated market, properly defined and measured”US Department of Justice Horizontal Merger Guidelines
European Large Cap Equity Select European Large Cap Equity Select 15 | February 2011 |
HHI analysis enables comparisons across regions/countries within an industry Levels of consolidation and profitability are globally correlated
Practical application of the HHIGlobal beer industry structure and profitability
Source: BNP Paribas Asset Management, 2010
Investment philosophy
European Large Cap Equity Select European Large Cap Equity Select 16 | February 2011 |
Practical application of the HHIInvestment philosophy
Global beer industry structure and profitability
Source: MLBoA, Canadian andBNP Paribas Asset Manageme2010
European Large Cap Equity Select European Large Cap Equity Select 17 | February 2011 |
Consolidating industries usually experience both increased profitability and lower risk to that profitability
Practical application of the HHIInvestment philosophy
Global beer industry structure and profitability
Source: MLBoA, Canadian andBNP Paribas Asset Manageme2010
European Large Cap Equity Select European Large Cap Equity Select 18 | February 2011 |
Practical application of the HHIInvestment philosophy
Source: BNP IP, Autonomous, Merrill Lynch, Bank of England
European Large Cap Equity Select European Large Cap Equity Select
Investment philosophyPractical application of the HHI
European Large Cap Equity Select European Large Cap Equity Select
Investment philosophyPractical application of the HHI
Mobile Phone handset market and Nokia margins
19.5% 22.4% 23.2% 20.4% 17.3% 16.6% 21.7% 16.6% 11.9% 10.5%
0%
20%
40%
60%
80%
100%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010YTD
Mar
ket S
hare
%
0
200
400
600
800
1000
1200
1400
1600
1800
2000
HHI
OthersHTCRIMAppleSony-EricssonLG ElectronicsSamsungMotorolaNokiaHHI
Source: BNP IP and Factset
European Large Cap Equity Select European Large Cap Equity Select 21 | February 2011 |
Overview
*‘Straw hats in winter’ = a contrarian approach, focusing on out-of-favour industries.
Investment process
HHI industrystructure
BNPP IPglobal
research
Portfolio construction
Idea generation
Impl
emen
tatio
n
Stock riskmanagement
Stock knowledgeIndustry structure
Peer scrutinyDCFs / models
Portfolio riskmanagement
Risk mgt systemsSector limitStock limit
Industry analysis
Company analysis
Peer review process
‘Straw hats’ in winter *
Growth & quality screens
European Large Cap Equity Select European Large Cap Equity Select
● We seek out industries with high barriers to entry, limited competition and suppliers and customers with weak bargaining power. Consolidating industries always warrant attention
● We are particularly interested in sectors of the market that areout of favour due to short-term issues or ingrained market prejudice, and yet display many of the desirable longer-term attributes we seek
● Quantitative screens are used to help establish research priorities
● In addition to our own internally generated research ideas, we liaise closely with other BNPP IP investment centres, to obtain their best investment ideas
22 | February 2011 |
Focus on idea generation phaseHHI
industrystructure
Growth &quality
screens
‘Strawhats’ inwinter
BNPP IPglobal
research
Investment process
European Large Cap Equity Select European Large Cap Equity Select 23 | February 2011 |
Company analysis●Growth sustainability
Quantify the underlying earnings growth potential of the company
●Competitive advantageAssess the nature of the company’s ability tooutperform its competitors and its sustainability
●Corporate strategyAssess the risks to our analysis and to what degree they can be managed by the company
●Valuation (DCF modelling, sum-of-the-partsand relative valuation)
Determine an appropriate price to pay
Industry analysis●Industry structure (HHI assessment, Porter analysis and value chain analysis)
Will the industry be able to generateattractive and sustainable excess returns?
●Industry growth (demographics and demand/supply analysis)
What is the longer-term growth profile of the industry?
●‘Straw hats in winter’ (contrarian approach, focusing on out-of-favour industries)
What is the market’s assessment of the industry prospects ?
Focus on implementation phaseInvestment process Industry analysis
Company analysis
European Large Cap Equity Select European Large Cap Equity Select 24 | February 2011 |
● A key strength lies in our peer review decision-making process. We believe that performance attribution should not be confined to after the event analysis. A good investment should always be supported by a clear and well structured investment case
● Benefits:– It brings to bear the entire team’s specialist skills and experience– Such an approach acts as a very effective quality filter to ensure all
key issues have been addressed. It ensures a far higher standard of analysis
– It supports the retention of key personnel through engagement and decision ownership
– Such team decision-making forums also generate new investment ideas
Focus on implementation phaseInvestment process Peer review process
European Large Cap Equity Select European Large Cap Equity Select 25 | February 2011 |
Focus on implementation phasePortfolio constructionInvestment process
● Portfolios are structured to be driven by stock-specific risk, ensuring our risk budget is spent in accordance with our core skill set. Stock weights are a function of expected return adjusted for risk – assessed with reference to conviction, industry structure and marginal contribution to portfolio risk
● The use of risk management systems ensures that the conviction attached to each stock and its risk profile accords to its specific contribution to overall portfolio risk
● Trades scenario analysis is performed in advance to estimate their impact on the portfolio
● Sell discipline utilises a simple process: limit the number of stocks, and then constantly seek better investment propositions via thorough internally generated research that is then subject to peer review
European Large Cap Equity Select European Large Cap Equity Select 26 | February 2011 |
A two-layered structureRisk management Stock risk
managementStock knowledgeIndustry structure
Peer scrutinyDCFs / models
Portfolio riskmanagement
Risk mgt systemsSector limitStock limit
Stock risk management● Detailed stock knowledge based on
thorough proprietary research● Concentration on companies operating in
strong industry structures● All investments subject to peer scrutiny● Detailed models and DCF analysis
provide greater insight into sensitivities
Portfolio risk management● Reconciliation of fundamental analysis
with Northfield, Barra, ERAM and PASportfolio risk management systems
● Sector limit capped at +/-10% points versus benchmark at GICS sector level
● Stock limit capped at <5% points overweight
Dedicated risk manager leading a weekly risk management meetingDecomposition of the tracking error to assess the sources of the tracking risk
European Large Cap Equity Select European Large Cap Equity Select 27 | February 2011 |
Risk managementCommon factor versus stock specific risk
Source: Northfield and BNP Paribas Asset Management as of end December 2010Past performance is not indicative of future performance
BNP Paribas L1 Equity Best Selection Europe
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
3,5%
4,0%
4,5%
5,0%
Jun-
08Ju
l-08
Aug
-08
Sep-
08O
ct-0
8N
ov-0
8D
ec-0
8Ja
n-09
Feb-
09M
ar-0
9A
pr-0
9M
ay-0
9Ju
n-09
Jul-0
9A
ug-0
9Se
p-09
Oct
-09
Nov
-09
Dec
-09
Jan-
10Fe
b-10
Mar
-10
Apr
-10
May
-10
Jun-
10Ju
l-10
Aug
-10
Sep-
10O
ct-1
0N
ov-1
0D
ec-1
0
Trac
king
Err
or (%
)
Stock specific riskCommon factor risk
February 2009:Negative market exposure:Reviewed: Schneider, Svenska Handelsbanken, Sandvik, MAN, Arcelor Mittal, Kingfisher, Nestle, Dassault Systemes.Trades: Imperial Tobacco sold. Schneider Electric and Kingfisher bought
May/June 2010:Negative market exposure:Reviewed: Atlas Copco, BHP Billiton, Umicore, Volkswagon, Oil Services, Pharma, Synthes, Reckitt BeckiserTrades: Reckitt Benckiser sold. Rio Tinto and Technip bought
European Large Cap Equity Select European Large Cap Equity Select 28 | February 2011 |
Risk managementActive risk
BNP Paribas L1 Equity Best Selection Euro
Source: BNP Paribas Asset Management as of end December 2010Past performance is not indicative of future performance
Only around 25% of the portfolios represents benchmark weight
BNP Paribas L1 Equity Best Selection Europe
0
10
20
30
40
50
60
70
80
90
100
May
200
8Ju
ne 2
008
July
200
8Au
gust
200
8Se
ptem
ber 2
008
Oct
ober
200
8N
ovem
ber 2
008
Dec
embe
r 200
8Ja
nuar
y 20
09Fe
brua
ry 2
009
Mar
ch 2
009
April
200
9M
ay 2
009
June
200
9Ju
ly 2
009
Augu
st 2
009
Sept
embe
r 200
9O
ctob
er 2
009
Nov
embe
r 200
9D
ecem
ber 2
009
Janu
ary
2010
Febr
uary
201
0M
arch
201
0Ap
ril 2
010
May
201
0Ju
ne 2
010
July
201
0Au
gust
201
0Se
ptem
ber 2
010
Oct
ober
201
0N
ovem
ber 2
010
Dec
embe
r 201
0
0
10
20
30
40
50
60
70
80
90
100
May
-200
8Ju
ne-2
008
July
-200
8Au
gust
-200
8Se
ptem
ber-2
008
Oct
ober
-200
8N
ovem
ber-2
008
Dec
embe
r-200
8Ja
nuar
y-20
09Fe
brua
ry-2
009
Mar
ch-2
009
April
-200
9M
ay-2
009
June
-200
9Ju
ly-2
009
Augu
st-2
009
Sept
embe
r-200
9O
ctob
er-2
009
Nov
embe
r-200
9D
ecem
ber-2
009
Janu
ary-
2010
Febr
uary
-201
0M
arch
-201
0Ap
ril-2
010
May
-201
0Ju
ne-2
010
July
-201
0Au
gust
-201
0Se
ptem
ber-2
010
Oct
ober
-201
0N
ovem
ber-2
010
% A
ctiv
e ris
k
European Large Cap Equity Select European Large Cap Equity Select 29 | February 2011 |
● Strong and dependable growth profile:Chronic kidney failure incidence increasing with ageing demographics and greater affluence leading to obesity. Kidney dialysis has no real substitutes, no generic threat and is insulated from price pressure as small clinics must remain viable
● Compelling competitive advantage: FMC has a strong competitive advantage due to scale and vertical integration. It is the world’s leading operator of dialysis clinics (more than 2,200), with substantial buying power with required drugs, equipment and labour
The US Kidney Dialysis Service Industry
22612215
167512521224
1177120011371079962
0
10
20
30
40
50
60
70
80
90
100
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Mar
ket S
hare
0
500
1000
1500
2000
2500
HH
I Ind
ex
othersDialysis ClinicGambroDaVitaRenal Care GroupFresenius HHI
Global Dialysis Machine Market
0
10
20
30
40
50
60
70
80
90
100
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Mar
ket S
hare
0
500
1000
1500
2000
HH
I
BaxterGambroFreseniusHHI
US kidney dialysis service industry
High and stable HHI
Global dialysis machine marketHigh and rising HHI
Fresenius Medical Care - Global Leader in Kidney Dialysis
Source: BNP Paribas Asset Management, 2010
Stock selection examples
European Large Cap Equity Select European Large Cap Equity Select 30 | February 2011 |
UK DIY, home improvement and garden centres industry structure
Kingfisher UK operating profit
Source: Company Data, BofA Merrill Lynch and BNP Paribas Asset Management 2010
Stock selection examples● Leader in a consolidating industry and a
‘Straw hat in winter’
● The UK DIY market is under pressure with the weak housing market, weak consumer demand and past aggressive capacity growth within the industry. These factors are leading to substantial industry consolidation as the weak fail
● As the industry leader, we anticipate Kingfisher is a major beneficiary of this reduction in industry capacity: UK margins will recover from their currently depressed level
Kingfisher - UK and France leader in DIY retailing
High and rising HHI
European Large Cap Equity Select European Large Cap Equity Select 31 | February 2011 |
High and rising HHI
● Combination of consolidation and high capital intensity detract new entrants and increase market power. 75% of the global market is made up by #5 major players. At regional level business has monopoly/oligopoly characteristics due to limited gas transportability .
● High visibility of earnings stream due to the “take-or-pay” contractual structure for on-site business.
● Secular growth fuelled by tightening environmental regulations and emerging markets industrialisation.
The Linde Group - Global leader in industrial gases Industrial gases market shares by value
Top 5 market shares and HHI
Source: BNP Paribas Asset Management, 2
Stock selection examples
3. Performance review
European Large Cap Equity Select European Large Cap Equity Select
Competitive positioning
33 | February 2011 |
BNP Paribas L1 Equity Best Selection EuroBNP Paribas L1 Equity Best Selection Euro relative**** performance and ranking as of end January 2011
Source: BNP Paribas Asset Management and Morningstar (gross performance C share, end January 2011)Past performance is not indicative of current or future performance*Annualised performance**Inception date 21 September, 1998***Since management of the current team, 01 March, 2008**** Benchmark applicable from 01 January, 2009: MSCI EMU (NR) Index(€). Previous benchmark - MSCI EURO (NR)
2,87 2,98
2,19
-2,48
0,48
4,494,64
-3,0
-2,0
-1,0
0,0
1,0
2,0
3,0
4,0
5,0
YTD Last 12M Last 24M* Last 36M* Last 60M* Since inc.** Sincemgt.***
European Large Cap Equity Select European Large Cap Equity Select 34 | February 2011 |
Overall performanceBNP Paribas L1 Equity Best Selection Euro – Performance from Jan. 2006 to January 2011 gross of fees, Classic shares
BNP Paribas L1 Equity Best Selection Euro – 2 year rolling relative* performance
* Benchmark for BNP Paribas L1 Equity Best Selection Euro: MSCI EMU (NR) Index(€) - Prior to 1 January, 2009 benchmark was MSCI Euro (NR) IndexSource: BNP Paribas Asset Management as of end January 2011 Past performance is not indicative of future performance
-3,0%
-2,0%
-1,0%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%Ja
n-06
Mar
-06
May
-06
Jul-0
6
Sep-
06
Nov
-06
Jan-
07
Mar
-07
May
-07
Jul-0
7
Sep-
07
Nov
-07
Jan-
08
Mar
-08
May
-08
Jul-0
8
Sep-
08
Nov
-08
Jan-
09
Mar
-09
May
-09
Jul-0
9
Sep-
09
Nov
-09
Jan-
10
Mar
-10
May
-10
Jul-1
0
Sep-
10
Nov
-10
Jan-
11
European Large Cap Equity Select European Large Cap Equity Select
Competitive positioning
35 | February 2011 |
MercerInsight MPA report for BNP Paribas L1 Equity Best Selection Euro
European Large Cap Equity Select European Large Cap Equity Select 36 | February 2011 |
Competitive positioningMercerInsight MPA report for BNP Paribas L1 Equity Best Selection Euro
European Large Cap Equity Select European Large Cap Equity Select
Competitive positioning
37 | February 2011 |
BNP Paribas L1 Equity Best Selection EuropeBNP Paribas L1 Equity Best Selection Europe relative**** performance and ranking as of end January 2011
Source: BNP Paribas Asset Management and Morningstar (Gross performance C share, end January 2011) Past performance is not indicative of current or future performance*Annualised performance**Inception date 17 May, 2004***Since management of the current team, 01 March, 2008**** Benchmark applicable from 01 January, 2009: MSCI Europe (NR) Index (€). Previous benchmark - MSCI PAN-EURO (NR)
4,01
2,07
3,32
-1,74
3,63
1,411,49
-3,0
-2,0
-1,0
0,0
1,0
2,0
3,0
4,0
5,0
YTD Last 12M Last 24M* Last 36M* Last 60M* Since inc.** Sincemgt.***
European Large Cap Equity Select European Large Cap Equity Select 38 | February 2011 |
BNP Paribas Equity L1 Best Selection Europe – 2 year rolling relative* performance
Overall performance
* Benchmark for BNP Paribas L1 Equity Best Selection Europe: MSCI Europe (NR) Index (€) - Prior to 1 January, 2009 benchmark was MSCI Pan-Euro (NR) Index
BNP Paribas L1 Equity Best Selection Europe – Performance from May 2006 to January 2011net of fees, Classic shares
Source: BNP Paribas Asset Management as of end January 2011Past performance is not indicative of future performance
-3,0%
-2,0%
-1,0%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
May
-06
Jul-0
6
Sep-
06
Nov
-06
Jan-
07
Mar
-07
May
-07
Jul-0
7
Sep-
07
Nov
-07
Jan-
08
Mar
-08
May
-08
Jul-0
8
Sep-
08
Nov
-08
Jan-
09
Mar
-09
May
-09
Jul-0
9
Sep-
09
Nov
-09
Jan-
10
Mar
-10
May
-10
Jul-1
0
Sep-
10
Nov
-10
Jan-
11
European Large Cap Equity Select European Large Cap Equity Select
Competitive positioning
39 | February 2011 |
MercerInsight MPA report for BNP Paribas L1 Equity Best Selection Europe
European Large Cap Equity Select European Large Cap Equity Select
Competitive positioning
40 | February 2011 |
MercerInsight MPA report for BNP Paribas L1 Equity Best Selection Europe
European Large Cap Equity Select European Large Cap Equity Select
Competitive positioning
41 | February 2011 |
Source: BNP Paribas Asset Management and Morningstar (gross performance C share, end January 2011)Past performance is not indicative of current or future performance*Annualised performance**Inception date 31/10/1985***Since management of the current team, 01 March, 2008**** Benchmark : MSCI Europe (NR) Index (€)
BNP Paribas L1 Equity Europe GrowthBNP Paribas L1 Equity Europe Growth relative**** performance and ranking as of end January 2011
-1,78
5,13
3,10
-
4,30
3,55
5,43
-3,0
-2,0
-1,0
0,0
1,0
2,0
3,0
4,0
5,0
6,0
YTD Last 12M Last 24M* Last 36M* Last 60M* Since inc.** Sincemgt.***
European Large Cap Equity Select European Large Cap Equity Select 42 | February 2011 |
BNP Paribas L1 Equity Europe Growth – Performance from January 2006 to January 2011net of fees, Classic shares
BNP Paribas L1 Europe Growth – 2 year rolling relative* performance
Overall performance
* Benchmark for BNP Paribas L1 Equity Europe Growth: MSCI Europe (NR) Index (€) Source: BNP Paribas Asset Management as of end January 2011Past performance is not indicative of future performance
-3,0%
-2,0%
-1,0%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%Ja
n-06
Mar
-06
May
-06
Jul-0
6
Sep-
06
Nov
-06
Jan-
07
Mar
-07
May
-07
Jul-0
7
Sep-
07
Nov
-07
Jan-
08
Mar
-08
May
-08
Jul-0
8
Sep-
08
Nov
-08
Jan-
09
Mar
-09
May
-09
Jul-0
9
Sep-
09
Nov
-09
Jan-
10
Mar
-10
May
-10
Jul-1
0
Sep-
10
Nov
-10
Jan-
11
European Large Cap Equity Select European Large Cap Equity Select
Competitive positioning
43 | February 2011 |
MercerInsight MPA report for BNP Paribas L1 Equity Europe Growth
European Large Cap Equity Select European Large Cap Equity Select
Competitive positioning
44 | February 2011 |
MercerInsight MPA report for BNP Paribas L1 Equity Europe Growth
European Large Cap Equity Select European Large Cap Equity Select 45 | February 2011 |
BNP Paribas L1 Equity Best Selection Europe cumulative relative* performance (gross of fees)
Overall performanceBNP Paribas L1 Equity Best Selection Europe cumulative performance since February 2008
Source: BNP Paribas Asset Management (Gross of fees performance, end January 2010) Past performance is not indicative of current or future performance* Benchmark applicable from 01 January, 2009: MSCI Europe (NR) Index (€). Previous benchmark - MSCI PAN-EURO (NR)
Outperformance in both declining and
rising markets
40
50
60
70
80
90
100
110
Feb‐
08M
ar‐0
8Ap
r‐08
May
‐08
Jun‐
08Ju
l‐08
Aug‐0
8Se
p‐08
Oct‐0
8No
v‐08
Dec‐0
8Ja
n‐09
Feb‐
09M
ar‐0
9Ap
r‐09
May
‐09
Jun‐
09Ju
l‐09
Aug‐0
9Se
p‐09
Oct‐0
9No
v‐09
Dec‐0
9Ja
n‐10
Feb‐
10M
ar‐1
0Ap
r‐10
May
‐10
Jun‐
10Ju
l‐10
Aug‐1
0Se
p‐10
Oct‐1
0No
v‐10
Dec‐1
0Ja
n‐11
Performan
ce In
dexed to 100
0
2
4
6
8
10
12
14
16
18Cumulative excess return (RHS)
Best Select Europe (LHS)
MSCI Europe (LHS)
4. Key points
European Large Cap Equity Select
Key points● Highly experienced, stable investment team
● Disciplined investment process based on differentiated industry analysis and in-depth company analysis
● Concentrated range of funds managed with the same investment philosophy and process for institutional and intermediated client segments
47 | February 2011 |
Sustainable organisation
Client focused
Focus on long-term performance
A differentiated approach to European equities stock picking
5. Appendices
European Large Cap Equity Select European Large Cap Equity Select
Investment teamAndrew A. KingChief Investment Officer25 years of experienceBusiness Experience2010 to date BNP Paribas Investment Partners , United Kingdom – Chief Investment Officer, European Equities 2008 – 2010 Fortis Investments, United Kingdom – Chief Investment Officer, European Equities 2006 – 2008 ABN AMRO Asset Management, United Kingdom – Head of Global Growth Equities2000 – 2006 ABN AMRO Asset Management, Australia – Chief Investment Officer, Australian Equities 1999 – 2000 Prudential Portfolio Managers, Singapore – Regional Director1996 – 1998 Norwich Investment Management, Australia – Director of Equities1988 – 1996 Armstrong Jones, Australia – Head of Equities1988 – 1988 Coutts & Co., United Kingdom – Investment Analyst1985 – 1988 Strauss, Turnbull & Co., United Kingdom – Investment AnalystQualificationsB Econ., University of SydneyASIA Securities Institute of Australia
Peter AbbottSenior Portfolio Manager26 years of experienceBusiness Experience2010 to date BNP Paribas Investment Partners , United Kingdom – Senior Portfolio Manager, European Equities 2008 – 2010 Fortis Investments, United Kingdom – Senior Portfolio Manager, European Equities 2007 – 2008 ABN AMRO Asset Management, United Kingdom – Senior Portfolio Manager, Global Equities2002 – 2007 BlackRock (formerly Merrill Lynch Investment Managers) – Global Equities, Industrials 1994 – 2002 Newton Investment Management, United Kingdom – Director, Industrials1991 – 1993 Scottish Amicable Investment Managers, United Kingdom – Portfolio Manager, Small Caps1988 – 1991 Eurocontinental Advisors - Director, Venture Capital1984 – 1988 DG Deutsche Genossenschaftsbank, United Kingdom – Analyst, Corporate Finance QualificationsBSc., University of LondonMSc., University of London
49 | February 2011 |
Biographies
European Large Cap Equity Select European Large Cap Equity Select
Investment teamValérie Charrière PousseSenior Portfolio Manager14 years of experienceBusiness Experience2010 to date BNP Paribas Investment Partners, Paris – Senior Portfolio Manager, European Equities 2006 – 2010 Fortis Investments, Paris – Sector portfolio manager (Consumer goods, Healthcare)1998 – 2005 CA Cheuvreux, Paris - Sell side analyst and European sector coordinator (Hotels&Leisure, Buisness Services)1997 – 1998 Dynabourse (Crédit Agricole) - Sell-Side Analyst (Luxury goods, Hotels and Leisure, Agribusiness)1996 EuroMidCaps Securities - Sales/ AnalystQualificationsFrench Financial Analyst Diploma (SFAF) Montpellier Business School - Finance
Giovanni CherubiniSenior Portfolio Manager18 years of experienceBusiness Experience2010 to date BNP Paribas Investment Partners , Paris – Senior Portfolio Manager, European Equities 2007 – 2010 Fortis Investments, Paris – Senior Portfolio Manager, European Equities 2002 – 2007 Banca Akros (Milan) – Equity Analyst2000 – 2002 Mediobanca (Milan) – Equity Analyst 1998 – 2000 Dresdner Kleinwort Benson (Milan, London) – Equity Analyst 1997 – 1998 Independent adviser (main project: CE France of Cremonini Group, Paris)1992 – 1995 ODI Manent (Milan) – Management Consultant QualificationsSFA Certificate MBA, SDA Bocconi - London Business School (Fall term)
50 | February 2011 |
Biographies
European Large Cap Equity Select European Large Cap Equity Select
Investment teamDaniel Hemmant, CFASenior Portfolio Manager18 years of experienceBusiness Experience2010 to date BNP Paribas Investment Partners , United Kingdom – Senior Portfolio Manager, European Equities 2008 – 2010 Fortis Investments, United Kingdom – Senior Portfolio Manager, European Equities 2006 – 2008 ABN AMRO Asset Management, United Kingdom – Senior Portfolio Manager, Global Equities2001 – 2006 Newton Investment Management, United Kingdom – Portfolio Manager, Global and US Equities 1999 – 2001 Cazenove Fund Management, United Kingdom – Investment Director1997 – 1999 Guinness Flight Global Asset Management (now Investec), United Kingdom – Portfolio Manager, Fixed Income1995 – 1997 Guinness Flight Global Asset Management, Hong Kong – Portfolio Manager, Asian Fixed Income1992 – 1995 Guinness Flight Global Asset Management, United Kingdom – Fixed Income DeskQualificationsBA., Cambridge UniversityAssociate Member of CFA Society of the UK
Daniel HobsterPortfolio manager3 years of experience Business Experience2010 to date BNP Paribas Investment Partners , United Kingdom – Portfolio Manager, European Equities 2007 to 2010 Fortis Investments, Associate
• European Equity Analyst, London• Asian Equity Analyst, Hong Kong• Global Equity Analyst, United States
2007 ABN AMRO Asset Management, London – Global Equity Analyst QualificationsBA., University of OxfordIMC, CFA Candidate (completed Level 1 of CFA Program)
51 | February 2011 |
Biographies
European Large Cap Equity Select European Large Cap Equity Select
Investment teamJeroen KnolSenior Portfolio Manager13 years of experienceBusiness Experience2010 to date BNP Paribas Investment Partners , United Kingdom – Senior Portfolio Manager, European Equities 2008 – 2010 Fortis Investments, United Kingdom – Senior Portfolio Manager, European Equities2006 – 2008 ABN AMRO Asset Management, United Kingdom – Portfolio Manager, Global Equities2002 – 2006 ABN AMRO Asset Management, Netherlands – Equity Analyst, Global Financials1999 – 2002 ABN AMRO Bank, Netherlands – Investment Banking Development Program1998 – 1999 Mees Pierson, Netherlands – Fund Accounting 1997 – 1997 ABN AMRO Bank, United States – TreasuryQualificationsMSc. (Finance), Vrije University
Olivier RudigozSenior Portfolio Manager21 years of experienceBusiness Experience2003 to date BNP Paribas Investment Partners, Paris – Senior Portfolio Manager, European Equities1999 – 2003 Merrill Lynch Investment Managers, London – Senior Portfolio Manager, European Equities1998 – 1999 Putnam Investments, Boston – Portfolio Manager, Global Growth team (focusing on European equities)1989 – 1998 Paribas Asset Management, Paris – Portfolio Manager, European Equities QualificationsHEC School of Management, Paris – Finance and Corporate Strategy
52 | February 2011 |
Biographies
European Large Cap Equity Select European Large Cap Equity Select
Fund facts
53 | February 2011 |
Sub-fund BNP Paribas L1 Equity Best Selection Euro
Legal form Compartment of the BNP Paribas L1 UCITS III Compliant SICAV registered under the Luxembourg law
Launch date 21/09/1998Risk scale 3 (on a scale of 0-6)
Benchmark MSCI EMU (NR) Index(€)Recommended investment horizon 10 years
Base currency Euro
Fund manager Valérie Charrière-Pousse
Management fees 1.5% (Classic, C-share)0.60% (Institutions, I-share)
ISIN codes LU0090548479 (Classic capitalisation, C-share)LU0090547375 (Classic distribution, C-share)LU0158844521 (Institutions, I-share)
Bloomberg code FOREBSA LX (Classic capitalization, C-share)FOREBSI LX (Classic distribution, C-share)FOEBSEI LX (Institutions, I-share)
BNP Paribas L1 Equity Best Selection Euro
As per 01/09/2010, FLF Equity Best Selection Euro has been renammed BNP Paribas L1 Equity Best Selection Euro
European Large Cap Equity Select European Large Cap Equity Select
Fund facts
54 | February 2011 |
Sub-fund BNP Paribas L1 Equity Best Selection Europe
Legal form Compartment of the BNP Paribas L1 UCITS III Compliant SICAV registered under the Luxembourg law
Launch date 17/05/2004
Risk scale 3 (on a scale of 0-6)Benchmark MSCI Europe (NR) Index(€)
Recommended investment horizon 10 years
Base currency EuroFund manager Valérie Charrière-Pousse
Management fees 1.5% (Classic, C-share)0.60% (Institutions, I-share)
ISIN codes LU0191755619 (Classic capitalisation, C-share)LU0191755882 (Classic distribution, C-share)LU0191756005 (Part Institutions)
Bloomberg code FOEBSEC LX (Classic capitalisation, C-share)FOESED LX (Classic distribution, C-share)FOEBSLI LX (Part Institutions)
BNP Paribas L1 Equity Best Selection Europe
As per 01/09/2010, FLF Equity Best Selection Europe has been renammed BNP Paribas L1 Equity Best Selection Europe
European Large Cap Equity Select European Large Cap Equity Select 55 | February 2011 |
Fund facts Sub-fund BNP Paribas L1 Equity Europe Growth
Legal form Compartment of the BNP Paribas L1 UCITS III Compliant SICAV registered under the Luxembourg law
Launch date 31/10/1985Risk scale 3 (on a scale of 0-6)
Benchmark MSCI Europe (NR) Index(€)Recommended investment horizon 9 years
Base currency Euro
Fund manager Daniel Hemmant
Management fees 1.5% (Classic, C-share)0.60% (Institutions, I-share)
ISIN codes LU0375761581(Classic capitalisation, C-share)LU0375761664(Classic distribution, C-share)LU0375761821(Institutions, I-share)
Bloomberg code FGEUCCE LX (Classic capitalisation, C-share)FLEGECD LX (Classic distribution, C-share)FGEUIEU LX (Institutions, I-share)
BNP Paribas L1 Equity Europe Growth
As per 01/09/2010, FLF Equity Europe Growth has been renammed BNP Paribas L1 Equity Europe Growth
European Large Cap Equity Select European Large Cap Equity Select
Performance (%) YTD Last 12M Last 24M* Last 36M* Last 60M*Since inc.**
Since mgt.***
BNP Paribas L1 Equity Best Selection Euro 1,58 15,19 23,91 0,34 1,61 3,95 0,56
MSCI EMU Net Return Index**** 4,06 12,32 20,92 -4,30 -0,57 3,47 -3,93
Excess return -2,48 2,87 2,98 4,64 2,19 0,48 4,49
Risk indicators (annualised) Last 36W Last 52W Last 24M Last 36M Last 60MSince inc.**
Since mgt.***
Fund volatility (%) 13,99 18,17 17,57 20,70 18,06 18,96
Benchmark volatility (%) 15,83 20,18 20,81 22,88 19,50 19,41
Tracking error (%) 3,79 3,68 4,33 3,77 3,36
Information ratio 0,34 0,78 0,69 1,23 0,65all figures gross of fees (in EUR)
* annualised performance
** inception date: 21/09/1998 (annualised)
*** since management o f the current team: 01 M arch, 2008 (annualised)
**** Benchmark applicable from 01 January, 2009. Previous benchmark: M SCI EURO (NR)
Past performance or achievements are not indicative of current or future performance.
Performance (net of fees C share) (%) YTD Last 12M Last 24M* Last 36M* Last 60M*Since inc.**
Since mgt.***
BNP Paribas L1 Equity Best Selection Euro (C) 1,42 13,10 21,68 -1,47 -0,22 2,24 -1,25
MSCI EMU Net Return Index**** 4,06 12,32 20,92 -4,30 -0,57 3,47 -3,93
Excess return -2,64 0,79 0,75 2,83 0,36 -1,23 2,68
Risk indicators (annualised) Last 36W Last 52W Last 24M Last 36M Last 60M*Since inc.**
Since mgt.***
Fund volatility (%) 13,99 18,17 17,57 20,70 18,06 18,96
Benchmark volatility (%) 15,83 20,18 20,81 22,88 19,50 19,41
Tracking error (%) 3,79 3,68 4,33 3,77 3,36
Information ratio -0,27 0,21 0,17 0,75 0,11* annualised performance
** inception date: 21/09/1998 (annualised)
*** since management o f the current team: 01 M arch, 2008 (annualised)
**** Benchmark applicable from 01 January, 2009. Previous benchmark: M SCI EURO (NR)
M anagement fees: 1.50%
Past performance or achievements are not indicative of current or future performance.
56 | February 2011 |
BNP Paribas L1 Equity Best Selection EuroPerformance
Source: BNP Paribas Asset Management (Gross and Net performance, end January 2011) Past performance is not indicative of current or future performance
European Large Cap Equity Select European Large Cap Equity Select
Performance (%) YTD Last 12M Last 24M* Last 36M* Last 60M*Since inc.**
Since mgt.***
BNP Paribas L1 Equity Best Selection Europe -0,03 20,35 26,22 2,09 1,77 6,95 2,72
MSCI Europe Net Return Index**** 1,71 16,34 24,15 -1,23 0,28 5,53 -0,91
Excess return -1,74 4,01 2,07 3,32 1,49 1,41 3,63
Risk indicators (annualised) Last 36W Last 52W Last 24M Last 36M Last 60MSince inc.**
Since mgt.***
Fund volatility (%) 13,20 17,63 14,71 17,96 15,92 14,70
Benchmark volatility (%) 14,08 18,00 17,04 19,71 17,00 15,46
Tracking error (%) 3,39 3,50 4,10 3,70 3,30
Information ratio 1,51 1,14 0,51 0,90 0,45all figures gross of fees (in EUR)
* annualised performance
** inception date: 17 M ay, 2004 (annualised)
*** since management o f the current team: 01 M arch, 2008 (annualised)
**** Benchmark applicable from 01 January, 2009. Previous benchmark: M SCI PAN-EURO (NR)
Past performance or achievements are not indicative of current or future performance.
Performance (net of fees C share) (%) YTD Last 12M Last 24M* Last 36M* Last 60M*Since inc.**
Since mgt.***
BNP Paribas L1 Equity Best Selection Europe (C) -0,19 18,18 23,96 0,26 -0,06 5,03 0,88
MSCI Europe Net Return Index**** 1,71 16,34 24,15 -1,23 0,28 5,53 -0,91
Excess return -1,89 1,84 -0,19 1,49 -0,34 -0,50 1,79
Risk indicators (annualised) Last 36W Last 52W Last 24M Last 36M Last 60M*Since inc.**
Since mgt.***
Fund volatility (%) 13,20 17,63 14,71 17,96 15,92 14,70
Benchmark volatility (%) 14,08 18,00 17,04 19,71 17,00 15,46
Tracking error (%) 3,39 3,50 4,10 3,70 3,30
Information ratio 0,80 0,53 -0,05 0,40 -0,10* annualised performance
** inception date: 17 June 2004 (annualised)
*** since management o f the current team: 01 M arch, 2008 (annualised)
**** Benchmark applicable from 01 January, 2009. Previous benchmark: M SCI PAN-EURO (NR)
M anagement fees: 1.50%Past performance or achievements are not indicative of current or future performance.
57 | February 2011 |
BNP Paribas L1 Equity Best Selection EuropePerformance
Source: BNP Paribas Asset Management (Gross and Net performance, end January 2011) Past performance is not indicative of current or future performance
European Large Cap Equity Select European Large Cap Equity Select
Performance (%) YTD Last 12M Last 24M* Last 36M* Last 60M*Since inc.**
Since mgt.***
BNP PARIBAS L1 Equity Europe Growth -0,54 21,47 27,70 3,64 2,99 9,81 2,77
MSCI Europe Net Return Index 1,24 16,34 24,15 -1,78 -0,11 0,00 -1,53
Excess return -1,78 5,13 3,55 5,43 3,10 0,00 4,30
Risk indicators (annualised) Last 36W Last 52W Last 24M Last 36M Last 60MSince inc.**
Since mgt.***
Fund volatility (%) 13,32 17,88 14,94 18,29 16,21 17,79
Benchmark volatility (%) 13,90 17,90 17,09 20,04 17,25 16,60
Tracking error (%) 3,38 3,62 4,07 4,27 3,69
Information ratio 1,92 1,42 0,87 1,27 0,84all figures gross of fees (in EUR)
* annualised performance
** inception date: 31 October, 1985 (annualised)
*** since management o f the current team: 01 M arch, 2008 (annualised)
Past performance or achievements are not indicative of current or future performance.
Performance (net of fees C share) (%) YTD Last 12M Last 24M* Last 36M* Last 60M*Since inc.**
Since mgt.***
BNP PARIBAS L1 Equity Europe Growth (C) -0,69 19,29 25,41 1,81 1,19 8,20 0,95
MSCI Europe Net Return Index 1,24 16,34 24,15 -1,78 -0,11 0,00 -1,53
Excess return -1,94 2,95 1,27 3,59 1,30 0,00 2,47
Risk indicators (annualised) Last 36W Last 52W Last 24M Last 36M Last 60M*Since inc.**
Since mgt.***
Fund volatility (%) 13,32 17,88 14,94 18,29 16,21 17,79
Benchmark volatility (%) 13,90 17,90 17,09 20,04 17,25 16,60
Tracking error (%) 3,38 3,62 4,07 4,27 3,69
Information ratio 1,20 0,82 0,31 0,84 0,35* annualised performance
** inception date: 31 October, 1985 (annualised)
*** since management o f the current team: 01 M arch, 2008 (annualised)
M anagement fees: 1.50%
Past performance or achievements are not indicative of current or future performance.
58 | February 2011 |
BNP Paribas L1 Equity Europe GrowthPerformance
Source: BNP Paribas Asset Management (Gross and Net performance, end January 2011) Past performance is not indicative of current or future performance
European Large Cap Equity Select European Large Cap Equity Select
-1,94%
-1,94%
-1,77%
-1,60%
-1,45%
-1,43%
-1,28%
-1,25%
-1,09%
-1,04%
1,95%
1,98%
2,04%
2,05%
2,08%
2,11%
2,11%
2,15%
2,32%
2,46%
-3% -2% -2% -1% -1% 0% 1% 1% 2% 2% 3% 3%
Bp
Vodafone Group
Novartis Ag
Total S.A
Siemens Ag
Glaxosmithkline
Unilever
Bhp Billiton Ltd
British American Tobacco
Basf Se
Atlas Copco Ab
Smiths Group
Royal Dutch Shell
Fresenius Med Care
Bg Group
Experian
Lvmh Moet Hennessy
Kingfisher
Synthes Inc
Jeronimo Martins Sgps S/A
59 | February 2011 |
Portfolios positioningTop and bottom 10 most active positions
10 most overweight stocks
10 most underweight stocks
BNP Paribas L1 Equity Best Selection Europe
Source: BNP Paribas Asset Management, as of end December 2010Note: overweight/underweight are positions relative vs. the benchmark
European Large Cap Equity Select European Large Cap Equity Select 60 | February 2011 |
Portfolios positioningSector breakdown
BNP Paribas L1 Equity Best Selection Europe
-3,7%
-3,1%
-3,0%
-1,1%
-0,4%
-0,3%
1,7%
2,7%
2,8%
3,6%
-10% -5% 0% 5% 10% 15% 20% 25%
FINANCIALS
UTILITIES
MATERIALS
TELECOMMUNICATION SERVICES
INFORMATION TECHNOLOGY
ENERGY
CONSUMER DISCRETIONARY
INDUSTRIALS
HEALTH CARE
CONSUMER STAPLES
Active positions Benchmark PortfolioSource: BNP Paribas Asset Management, as of end December 2010Note: active positions are relative positions vs. the benchmark
European Large Cap Equity Select European Large Cap Equity Select 61 | February 2011 |
Portfolios positioningFinancial ratios
BNP Paribas L1 Equity Best Selection Europe
Source: BNP Paribas Asset Management, as of end December 2010Note: NTM stands for Next Twelve Months, Med stands for Median; (FY0,1,2) stands for averaged annualised rate from FY0 to FY2, with FY0 representing the year of the last reported historical data
3,21
12,54
9,75
2,63
27,51
21,29
3,90
10,72
8,76
2,20
26,73
17,49
-
5,00
10,00
15,00
20,00
25,00
30,00
Div Yield (Med NTM)
PE (Med NTM) EV/Ebit (Med NTM)
PB (Med NTM) Earning Growth (FY0,1,2)
Dividend Growth (FY0,1,2)
Portfolio Benchmark
European Large Cap Equity Select European Large Cap Equity Select 62 | February 2011 |
Portfolios positioningStock selection
BNP Paribas L1 Equity Best Selection EuropeIndustry Name Active pos. Ptf. weight Bch. weight Industry Name Active pos. Ptf. weight Bch. WeightConsumer Durables & Apparel Banks
Luxottica Group S.p.A. 1,35 1,40 0,05 Banco Santander S.A. 1,34 2,61 1,27 LVMH Moet Hennessy Louis Vuitton 2,12 2,69 0,57 BNP Paribas S.A. 1,55 2,45 0,90 Swatch Group AG-Reg 1,85 2,09 0,24 DnB NOR ASA 1,79 1,98 0,19
Retailing HSBC Holdings PLC 1,30 3,92 2,62 Kingfisher PLC 2,12 2,25 0,14 Intesa Sanpaolo S.p.A. 1,08 1,43 0,34
Food & Staples Retailing Lloyds Banking Group PLC 1,55 2,16 0,62 Ahold(Kon)Nv 1,05 1,27 0,22 Diversified FinancialsJeronimo Martins Sgps S/A 2,58 2,63 0,05 Deutsche Boerse AG 0,45 0,63 0,19 Tesco 1,43 2,20 0,77 Insurance
Food Beverage & Tobacco Scor SE 1,33 1,39 0,06 Anheuser-Busch InBev 1,22 1,81 0,59 Vienna Insurance Group 1,37 1,40 0,03 Carlsberg As Ord Cl B 1,91 2,06 0,15 Health Care Equipment & Services Nestle Sa 1,55 4,41 2,86 Elekta AB 1,51 1,51 -
Energy Fresenius Medical Care AG & Co. KGaA 2,09 2,25 0,16 BG Group PLC 2,11 3,09 0,98 Synthes Inc. 2,27 2,38 0,11 Premier Oil PLC 1,22 1,22 - Royal Dutch Shell PLC (CL A) 2,00 4,89 2,89 Technip S.A. 1,25 1,38 0,13
Source: BNP Paribas Asset Management, as of end December 2010Note: active positions are relative positions vs. the benchmark
European Large Cap Equity Select European Large Cap Equity Select 63 | February 2011 |
Portfolios positioningStock selection
BNP Paribas L1 Equity Best Selection Europendustry Name Active pos. Ptf. weight Bch. weight Industry Name Active pos. Ptf. weight Bch. wePharmaceuticals Biotechnology & Life Sciences Materials
Bayer AG 1,59 2,49 0,89 Akzo Nobel Nv 1,75 1,95 0 Novo-Nordisk As 1,10 1,75 0,65 CRH PLC 1,51 1,72 0 Roche Holding AG 1,35 2,80 1,45 HeidelbergCement AG 0,97 1,10 0
Capital Goods Linde AG 1,86 2,22 0 Atlas Copco AB 1,92 2,28 0,36 Rio Tinto PLC 1,06 2,51 1 GEA Group AG 1,51 1,57 0,06 Telecommunication ServicesSchneider Electric S.A. 1,78 2,31 0,53 Telefonica Sa 0,40 1,74 1 Smiths Group PLC 2,00 2,10 0,11 Telenet Grp Hldg 1,80 1,80
Commercial & Professional Services Virgin Media Inc. 1,55 1,55 Experian PLC 2,12 2,30 0,18 Utilities
Transportation Centrica PLC 1,30 1,68 0 Aeroports de Paris 1,47 1,50 0,03 Red Electrica Corp. S.A. 1,41 1,48 0 Atlantia Spa 1,65 1,72 0,07 Vopak 1,03 1,07 0,05
Software & ServicesAmadeus IT Holdings S.A. 1,28 1,34 0,06 Autonomy Corp. PLC 0,93 1,00 0,07
Source: BNP Paribas Asset Management, as of end December 2010Note: active positions are relative positions vs. the benchmark
European Large Cap Equity Select European Large Cap Equity Select 64 | February 2011 |
DisclaimerT h is m ate ria l is is su e d a nd h as b ee n p re pa re d b y B N P P a riba s A s s e t M a n ag e m e n t (B N P P A M )* a m e m b e r o f B N P P a rib as Inv es tm e n t P a rtn e rs (B N P P IP )**.
T h is m ate ria l is p ro d uced fo r in fo rm a tio n pu rp oses on ly a nd d o es n o t co n s titu te :
1 . an o ffe r to b uy no r a so lic ita tio n to se ll, n o r sha ll it fo rm the b as is o f o r be re lied u pon in c on n ec tio n w ith an y c o n tra c t o r co m m itm e n t w h a tsoe ve r o r
2 . a ny in ve s tm e nt a dv ic e .
T h is m ate ria l m a ke s re fe re n ce to ce rta in fin an c ia l in s tru m e n ts (the “F in a nc ia l Ins trum en t(s )”) a u tho rise d a n d re gu la te d in its /the ir ju r isd ic tio n (s ) o f in co rp ora tion .
N o a c tio n h as be e n ta ke n w h ich w o u ld pe rm it the p ub lic o ffe r in g o f th e F ina nc ia l Ins trum e n t(s ) in a ny o th e r ju risd ic tio n , e xce p t as in d ica te d in th e m o st rece n t p rosp ec tus , o ffe rin g d ocum e n t o r an y o the r in fo rm a tio n m a te ria l, as ap p lica b le , o f th e re lev an t F in a nc ia l In s trum en t(s ) w h e re s uc h a c tion w o u ld be re qu ired , in pa rticu la r, in th e U n ite d S ta tes , to U S p e rso n s (a s such te rm is d e fine d in R e gu la tio n S o f thU n ite d S ta te s S e cu ritie s A c t o f 1 9 33 ). P rio r to a ny su b sc rip tion in a co u n try in w h ich such F in a nc ia l Ins trum e n t(s ) is /a re reg is te re d , inv e s to rs sh o u ld v e rify a ny le g a l co n s tra in ts o r res tr ic tion s th e re m a y b e in co nn e c tion w ith th e sub sc rip tion , p u rcha se , p osse ss ion o r s a le o f th e F in an c ia l In s tru m e n t(s ).
In ves to rs co ns ide ring su bsc rib in g fo r the F in a nc ia l In s tru m ent(s ) sh o u ld re a d ca re fu lly th e m o st rece n t p rospec tus , o ffe rin g do cum en t o r o the r in fo rm a tio n m a te ria l a n d con su lt th e F in a nc ia l Ins trum e nt(s )’ m ore cen t fin a nc ia l rep o rts . T h e p ro spe c tu s , o ffe rin g d ocum e n t o r o th e r in fo rm a tion o f th e F inan c ia l In s tru m en t(s ) a re a va ila b le from yo u r lo ca l B N P P IP co rre spo n de n ts , if a ny , o r from the e n tities m a rke ting the F in an c ia l In s tru m e n t(s ).
O p in ion s inc lud e d in th is m a te ria l co ns titu te th e jud g m e n t o f B N P P A M a t th e tim e sp ec ified a nd m a y b e su b je c t to cha n ge w itho u t n o tice . B N P P A M is n o t ob lig e d to u p da te o r a lte r th e in fo rm a tio n o r o p in io nc o n ta in e d w ith in th is m a te ria l. In v es to rs s h o u ld c o n s u lt th e ir o w n leg a l a nd tax a d v is o rs in re s pe c t o f le g a l, a c co u n ting , dom ic ile a n d tax a d v ic e p rio r to in v e s tin g in the F in a nc ia l In s trum e n t(s ) in o rd e r to m a k ein d ep e nd e n t d e te rm in a tion o f th e su ita b ility a nd co nse qu e nce s o f a n inves tm e n t th e re in , if p e rm itted . P le a se no te th a t d iffe re n t type s o f in ve s tm e n ts , if co n ta ined w ith in th is m a te ria l, in vo lve va ry in g de g ree s a n d th e re can be n o a ssu ra n ce th a t a ny sp ec ific in ve s tm en t m a y e ith e r b e su ita b le , ap p rop ria te o r p ro fita b le fo r a c lien t o r p ro sp ec tive c lie n t’s in ve s tm e n t p o rtfo lio .
G ive n th e e co n om ic a nd m a rke t r is ks , the re ca n b e n o a ssu ra n ce tha t the F in a nc ia l In s trum e n t(s ) w ill ach ie ve its /th e ir inve s tm en t ob jec tives . R e tu rns m a y b e a ffec ted by , am on g st o th e r th in g s , inves tm e n t s tra te g ie s o r o b jec tive s o f th e F in an c ia l In s tru m e n t(s ) a nd m a te ria l m a rke t an d e con om ic co n d ition s , inc lud ing in te res t ra te s , m a rke t te rm s an d ge n e ra l m a rke t co nd itio ns . T he d iffe ren t s tra teg ies ap p lie d to thF in an c ia l In s tru m e n ts m a y h a ve a s ign ifican t e ffe c t o n th e re su lts p o rtra ye d in th is m a te ria l. P a s t p e rfo rm an c e is n o t a gu ide to fu tu re p e rfo rm a nce an d the va lu e o f th e in ve s tm en ts in F in a nc ia l In s tru m en t(s ) g o do w n as w e ll as up . Inves to rs m a y n o t g e t b a ck th e am oun t the y o rig in a lly inves te d .
T h e pe rfo rm a nce d a ta , as ap p licab le , re fle c te d in th is m a te ria l, d o n o t take in to a cco un t th e co m m iss io ns , co s ts in cu rre d on th e issue a nd red e m p tio n and taxe s .
*B N P P A M is a n inve s tm en t m a n a ge r reg is te red w ith th e “A u to rité d es m a rch é s fina nc ie rs ” in F ra nce u n de r nu m be r 96 -0 2 , a s im p lifie d jo in t s toc k c o m p a n y w ith a c ap ita l o f 6 2 ,8 4 5 ,5 52 e u ros w ith its reg is te reo ffic e a t 1 , b o u leva rd H a u ss m a n n 7 5 00 9 P a ris , F ra nc e , R C S P a ris 3 19 3 78 83 2 . w w w .bn p pa rib as -am .co m .]
** “B N P P a rib as Inves tm e n t P a rtn e rs ” is the g lo ba l b ra n d n am e o f the B N P P a rib as g rou p ’s asse t m a n ag e m e n t se rv ice s . T h e in d iv id u a l as se t m a n ag em e n t e n titie s w ith in B N P P a riba s In ves tm e n t P a rtne rs ifsp ec ifie d h e re in , a re sp ec ifie d fo r in fo rm a tion o n ly a n d d o n o t n ece ssa rily ca rry on b us in e ss in yo u r ju r isd ic tio n . F o r fu rthe r in fo rm a tio n , p le ase con tac t yo u r lo ca lly lice nse d In ve s tm en t P a rtn e r.