Allianz GI, BNP Paribas IP, Roche-Brune top amLeague in July
The results of the investment manager amLeague in July shows the Euro Equities and Multi Asset categories were topped by Allianz GI, Europe and Global Equities by BNP Paribas IP and Europe Flexible by Roche-Brune Asset Management.
Commenting on its Euro Equities fund, Allianz GI said it was helped by Henkel, the German HPC company and the world leader in adhesives, which published a set of brilliant results for its Q2.
It noted that Henkel’s performance raised the question whether “quality names are not becoming too expensive as valuations are reaching a 10-year high.
The manager defines “quality” as 1/low volatility in the generation of cash, 2/clear drivers of growth and an ongoing internal dynamic, 3/strong balance sheet.
Therefore, dividends have scope to grow and are well covered by the FCF. With the freedom and flexibility that quality confers, the manager said it “is easy to understand why the quest for quality names is so intense”.
“Keeping these jewels in our portfolio, we keep investigate to find the future ones which still offer an attractive entry-point.
The Europe Equities category was headed in July by BNP Paribas IP for the first time.
The manager’s Guru strategy delivered a monthly performance of 7.07%, compared to 4.16% for the STOXX 600 index. The methodology applies fundamental criteria in order to select stocks which benefit from a perennial activity model, favourable perspectives and an attractive valuation.
The strategy applied in amLeague is a slightly adapted version of the Guru strategies distributed by THEAM since 2009 under UCITS funds vehicles, over multiples investment universes going from Asian to US Equities, as well as Emerging or Global Equities.
The manager said outperformance in July can be attributed to stock selection and sector allocation. Underweighting of Utilities and Financials helped create value, as did overweighting Consumer Discretionary and HealthCare, but all sectors contributed positively to bring alpha to the portfolio.
BNP Paribas IP also shone in the Global Equities category, where the Pure Low Volatility strategy performed well. While the market was rallying, the low volatility stocks portfolio outperformed the STOXX 1800 index by 0.70%. The strategy returned 5.03%, as the benchmark increased by 4.33%.
The manager noted the beta of the portfolio was only 0.4 meaning the alpha created by low volatility stocks was significant and made it possible to outperform the benchmark.