AAA Actions Agro Alimentaire R(EUR)

MONTHLY REPORT 30/12/2016
EQUITIES
AAA Actions Agro Alimentaire R (EUR)
C - FR0010058529
D - FR0010062695
n MANAGEMENT OBJECTIVE
The FCP objective is to outperform the MSCI Europe NDR index.
The recommended minimum investment period is five years.
n INVESTMENT POLICY
• A thematic approach to equity investing within the Consumer
Staples, Retail and Hotel&Leisure sectors.
• As the fund takes an active approach to sector allocation and
stockpicking, it does not aim to replicate its benchmark.
n PERFORMANCES NET OF FEES (%)
Fund
Benchmark
Performance spread
1 month
3 months
1 year
Year to date
3 years
5 years
3.66
5.84
-2.19
-2.72
6.12
-8.84
-1.64
2.58
-4.21
-1.64
2.58
-4.21
25.81
18.61
7.21
69.90
66.69
3.21
n ANNUAL PERFORMANCES NET OF FEES (%)
2012
16.84
17.29
-0.45
2013
15.58
19.82
-4.24
2014
6.88
6.84
0.04
• The fund is eligible for French equity savings plan (PEA), therefore
75% of stocks are permanently invested in shares of EU
companies.
Fund
Benchmark
Performance spread
• Conviction-led investment approach based on an in-depth
knowledge of the sectors and companies.
n PERFORMANCE EVOLUTION - (base 100 at 30/12/2011)
n BENCHMARK
2015
19.67
8.22
11.45
since 24/06/1985
100.00% MSCI EUROPE DNR €
n RISK AND REWARD PROFILE
The risk and reward profile is an indicator with a score from 1 to 7 and relates to
increasing levels of risk and return. Its methodology is based of 5 year
annualised volatility. The indicator can vary over time and is verified on regular
basis.
Recommended investment horizon
n Fund 169.90
> 5 years
n Benchmark 166.69
The performance figures quoted relate to past years. Past performance is not a reliable indicator of future
performance.
n MAIN INVESTMENT MANAGER
n RISK MEASURES (%)
Francoise LAFITTE
Rolling weekly data
Fund Standard Deviation
Benchmark Standard Deviation
Tracking error
Fund Sharpe ratio *
Information Ratio
Alpha
Beta
1 year
3 years
5 years
15.14
17.51
9.32
-0.09
-0.45
-3.51
0.73
14.80
16.64
7.05
0.52
0.28
3.13
0.81
13.05
15.18
6.89
0.81
0.06
2.76
0.77
* Risk free rate : Performance of annualised capitalised Eonia over the period
n
AUM AND NET ASSET VALUE
AuM (Euro)
Net Asset Value (EUR)
985,458,675
Share (C)
1,106.33
Share (D)
764.76
Last dividend as of 05/26/2016
11.80
n GLOBAL PORTFOLIO BREAKDOWN
Equities
Cash
Total
97.0
3.0
100.0
in % of AuM
For investment professional use only
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MONTHLY REPORT 30/12/2016
EQUITIES
AAA Actions Agro Alimentaire R (EUR)
n MAIN HOLDINGS
Denomination
ANHEUSER-BUSCH BB E
UNILEVER
BRIT.AMER.TOBACCO
SODEXO
KONINKLIJKE AHLD DEL
CARREFOUR
INDITEX
L'OREAL
DANONE
IMP TOBACCO
Total
Total number of holdings in portfolio
Fund
7.3
5.9
5.1
5.0
4.7
4.2
3.6
3.1
3.1
2.9
44.9
54
n GEOGRAPHICAL BREAKDOWN BY COUNTRY
in % of AuM
n CURRENCY BREAKDOWN
Denomination
Euro
Pound Sterling
Swiss Franc
US Dollar
Swedish Krona
in % of AuM
Fund
70.9
9.5
8.9
8.9
1.8
n SECTOR BREAKDOWN
MSCI Breakdown
in % of AuM incl. Forwards
in % of AuM
For investment professional use only
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MONTHLY REPORT 30/12/2016
EQUITIES
AAA Actions Agro Alimentaire R (EUR)
n FUND MANAGER'S COMMENT
2016 was full of surprises and will undoubtedly have been transition year:
- Firstly on the economic front, amid a rebalancing between emerging and developed economies, the normalization of Fed monetary policy, a shift in OPEC strategy with an
agreement on production quotas, and the announcement at the end of the year of QE tapering by the ECB in 2017.
- On the political front as well, with the surprise pro-Brexit vote in the UK and the election of Donald Trump as US president.
- Investor reaction was also unexpected, as the markets rapidly absorbed these events, with the exception of the GBP, which has remained weak. The election of Donald
Trump triggered heavy sector rotation involving investment flow towards US risky assets, as the investors forecast faster growth and higher inflation.
2016 was generally highly favourable for risky assets, including commodities, US equities and emerging assets, which nonetheless all lost ground after the US election.
Against this backdrop, the AAA fund posted a slightly negative performance, returning -1.6% in the RC share class and -1.2% in the IC share class, whereas the MSCI Europe
NDR index gained 2.6% in 2016. This performance should also take the fund's volatility into account, which was 15% lower than the one of the MSCI Europe index.
The food, drink & tobacco sector in Europe delivered mediocre returns of -2%* in 2016. The drinks industry recorded the worst performance, returning -6.3%, particularly ABI
which was weighed down by poor Q3 figures and fears over the Mexican economy after the election of Donald Trump. ABI is the heaviest weighting in the portfolio and we
remain confident that the security has strong upside potential on a 12-18 month investment horizon, due to latent synergies from SAB Miller's acquisition. In the food industry,
the portfolio is overweight the Swiss stock Lindt (2.8%) which fell by 13% in euros. Although we strengthened our position in Nestlé upon the nomination of the new CEO, we
nonetheless remained underweight as the new manager, who comes from the pharmaceutical sector, will not be able to detail his strategy for several months. Nestlé
outperformed the food sector with a +1.5% in euros during 2016.
Although the home and personal care sector (HPC) gained 2.6%, Unilever, our largest position, returned a flat performance in 2016. Furthermore, the fund had a zero weighting
in Henkel this year but we were exposed to L'Oréal, both rallied 13%.
The European food retail sector gained 5.5%, driven by UK stocks which we do not hold in the portfolio. This factor was offset however by our positions in Ahold Delhaize,
Metro and also by good timing on Casino. Carrefour, which was derated heavily during 2016, returned a disappointing performance. We believe that the stock is now
attractively valued, as the company's fundamentals have not deteriorated.
The AAA fund succeeded in outperforming its European investment universe by 50 basis points in 2016, as the portfolio was overweight in Sodexo, which is our fourth largest
position, and also due to good picking in the broader retail sector.
In the hotel & leisure sector, following the terrorist attacks and amid sluggish growth in the European economy, we adopted an underweight positioning in the hotel sector and
focused our investments on catering stocks. Sodexo returned +24% in 2016.
The General Retail sector, which represented 12.2% of the fund's assets on average in2016, contributed 4.5% to the portfolio, thanks to profitable stock-picking. In 2016, the
takeover bid by Fnac on Darty contributed +0.38% to the annual performance of the fund. We also concentrated our investments on companies with online focused business
models such as Asos (+23%), Zalando (+20%), Maison du Monde (+48%) and, to a lesser extent, Inditex (+4%) which served as a safe haven, having liquidated our UK retail
positions anticipating of a sharp reduction in UK consumer spending power in 2017, following sterling devaluation and uncertainties stemming from Brexit.
Aware of the slowdown in the consumer packaged goods sector (CPG), we strengthened several of the fund's positions among non-core themes, such as SEB and LVMH,
which gained 49% and 28% respectively.
However, our stock-picking in the US markets (8% of the fund) weighed on performance, particularly two retail stocks, Kroger and Signet, which both underperformed. We also
lacked exposure to the US industrial food sector which was boosted by heavy speculation. At the end of the year, we invested in P&G, Amazon and Kellogg, and sold Estée
Lauder which will be weighed down by the strong dollar and is lagging in the digital market.
The AAA thematic involves investing in quality companies which are resilient to economic crises due to their balanced regional mix, with 60% of sales generated outside of
Europe, among less-cyclical products. We remain convinced of the future global growth potential among CPG brands, particularly in the US. Furthermore, our core scenario
based on strong sales growth among emerging markets, driven by the rise of the middle class in these economies with keen appetite for manufactured consumer products,
remains valid in the medium term, despite the short-term slowdown.
Among mature developed markets, rising inflation is a tailwind for retailers and we are increasing this sector weighting in the portfolio. In Europe, listed Fast Moving Consumer
Goods companies plan to deliver productivity gains and are maintaining a high level of investment to support their brands.
M&A** deals: The ABI/SAB transaction will create shareholder value in the next 3 years. In a context of low interest rates and slow organic sales growth, FMCG groups seek
acquisitions because they have large Free Cash Flows*** and sound balance sheets. Danone announced in July a $12 Bn takeover of WhiteWave (fast growing US food
company specializing in organic and plant-based dairy), while BAT is attempting to buy Reynolds and further deals are to be expected.
*Performances on a net dividends reinvested basis
**M&A: mergers and acquisitions, takeover bids and sector consolidation
*** Free Cash Flow is the amount of cash that a company has left over after it has paid all of its expenses, including net capital expenditures
For investment professional use only
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MONTHLY REPORT 30/12/2016
EQUITIES
AAA Actions Agro Alimentaire R (EUR)
n CHARACTERISTICS
ISIN Code :
RC - FR0010058529
RD - FR0010062695
Custodian :
CACEIS BANK
Management Company :
NATIXIS ASSET MANAGEMENT
Centraliser :
CACEIS BANK
Legal structure :
French mutual fund (FCP)
Cut-off time (Paris time) :
15h30
AMF Classification :
International Equities
Prices used for valuation :
Last trade
Currency :
EUR
Order executed on :
The next NAV
Valuation Frequency :
Daily
Subscription fees (max.) % :
2.50
Income allocation :
Capitalization/Distribution
Redemption fees (max.) % :
0.00
Inception date :
24/06/1985
Performance fees % :
-
T.E.R. (max.) % :
1.79
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