Value is more than a number …
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The Irish Equity Fund is an actively managed mandate that will typically be invested in c. 10-20 stocks. Consistent with all Setanta funds, the Fund adheres to a fundamental value approach. By fundamental, we mean we view stocks as fractional ownerships of businesses that we try to understand. By value, we mean we strive to buy stocks below our assessment of their worth, taking into account risks and scenarios. We favour financially sound companies with good track records, where we can make reasoned projections of future profits.
It is customary for funds to be benchmarked against the most widely recognised national or regional indices. In the case of Ireland, that’s the ISEQ Index. However, the ISEQ is highly concentrated in a few large companies, particularly CRH. In the past, such concentrations (such as the banks in 2007, or Elan in 2001 and 2008) proved very costly. In sharp contrast, this fund aims to hold stocks in weights commensurate with their prospects and risks. Therefore we believe a more sensible gauge of the fund’s success is the average performance of all ISEQ members, which should result in lower risk for investors and also better reflects the performance of ‘Irish’ businesses. Thus the fund performance will likely be materially different to the ISEQ and most other Irish equity funds (who typically closely resemble the ISEQ), particularly due to its concentration in a small number of stocks. We are hopeful that the Fund strategy will outperform the ISEQ and our peer group over the long run.
| 1 month | YTD | 1 Year | 3 Year p.a. | 5 Year p.a. | 10 Year p.a. | |
| Fund | -1.2% | -10.7% | -10.7% | 17.4% | -11.9% | 0.8% |
| Benchmark | 5.6% | 2.6% | 2.6% | 10.0% | -18.9% | -4.1% |
| 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |
| Fund | 31.9% | -18.2% | -59.8% | 51.4% | 19.6% | -10.7% |
| Benchmark | 30.7% | -24.5% | -65.0% | 29.8% | -0.1% | 2.6% |
| Company | Sector | % of Fund |
| DCC | Industrials & Materials | 9.7% |
| ICON | Healthcare | 9.6% |
| TOTAL PRODUCE | Consumer Staples | 9.2% |
| KINGSPAN GROUP | Industrials & Materials | 8.9% |
| ABBEY | Industrials & Materials | 8.6% |
| IRISH CONTINENTAL | Industrials & Materials | 8.1% |
| CRH | Industrials & Materials | 8.0% |
| RYANAIR | Industrials & Materials | 7.8% |
| CPL RESOURCES | Consumer Discretionary | 7.6% |
| C&C | Consumer Staples | 6.0% |
| Sector Name | Fund Weight |
| Consumer Discretionary | 7.7% |
| Consumer Staples | 19.8% |
| Energy | 4.4% |
| Financials | 0.3% |
| Healthcare | 9.7% |
| Industrials & Materials | 58.1% |
David Pastor joined Setanta Asset Management in 2007. He has 4 years experience in the asset management industry, the last 2 on an analyst/fund manager capacity. He has a BS in Business Administration from Universidad de Burgos and is a member of the Association of Chartered Certified Accountants (ACCA). David is also a candidate in the CFA program.
Performance Source: Setanta Asset Management Limited. Benchmark: ISEQ. The Fund returns stated (in Euro) are based on the movements in the unit prices of a representative account, based on mid to mid prices, and are gross of management fees. The performance will be reduced by the impact of management fees paid, the amount of which varies.
The Irish Equity Fund is managed by Setanta Asset Management Limited and is a representative account of the Irish Equity strategy. The Fund is currently available in Ireland via a unit-linked offering of Canada Life Assurance (Ireland) Limited. For this life assurance product, investors should refer to the relevant policy conditions. The strategy is also available on a segregated basis.
WARNING: Past performance is not a reliable indicator of future results. The price of units and the income from them may go down as well as up and investors may not get back the amount invested. The return may increase or decrease as a result of currency fluctuations. Forecasts are not a reliable indicator of future performance.
