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					Monthly Report                                                                                                                                                           May 2011



RIC US Equity (Dublin) Fund
Performance Review
                                                                            One                 Three         Year              One        Three      Five      Ten         Since
                                                                           Month %             Months %    to Date %           Year %1    Years %   Years %   Years %    Inception %2
    RIC US Equity (Dublin) Fund ($ Gross of Fees)                             -1.4                 1.1           7.3               26.2    -0.4       3.5        2.8         3.5
    RIC US Equity (Dublin) Fund ($ Net of A Fees)                             -1.5                 0.8           6.9               25.1    -1.3       2.6        1.9         2.5
    Russell 1000 Index Net of Witholding Tax ($)                 3
                                                                              -1.1                 2.0           8.0               26.1     0.7       3.1        2.6         4.1
    Morningstar Median Manager ($)4                                           -1.5                 1.5           6.9               23.5    -1.3       1.2        0.5         2.2
    Quartile Ranking                                                              3                3             2                  2       2         1          1           2
    Fund Size $ 924m
1
    Returns greater than one year are annualised.
2
    Inception date 30/01/1998
3
    Prior to 1st January 2009, benchmark was gross of withholding tax, total return. Benchmark currently net of withholding tax.
4
    Morningstar Offshore & International Equity North America Universe




Market Performance

    Overview

    US equities lost momentum in May, with the Russell 1000 Index losing 1.1%, having endured four consecutive weekly losses. An early rally that
    accompanied news of the death of Al-Qaeda founder Ben Laden petered out as markets experienced the worst sell off in commodities in two
    and a half years, causing the energy and industrial sectors in particular to weaken.
    Meanwhile, economic data indicated a slowdown, as activity dipped in most sectors. Reduced consumer spending and diminished confidence
    weighed on domestic demand while Europe’s debt crisis, China’s tightening measures and the aftermath of the natural disaster in Japan
    reduced export trade.
    The employment market also lost momentum, as April’s unemployment rate bounced back above 9%, while house prices kept on falling and
    are now 33% below their 2006 peak level. The imminent end of the Fed’s second round of quantitative easing in June and the government’s
    inability to reach an agreement over the budget also weighed on sentiment.
    On a positive note however, corporate earnings remained strong, notably in the technology sector which was boosted by a resurgence of IPO
    activity, notably LinkedIn’s fantastic debut which reminded analysts of the prosperous dot-com years. From a sector perspective, defensive
    positions were favoured over cyclicality as a result of the increased aversion to risk.

Fund Performance

    Performance History (1)                                                                                 Key Drivers

                                                                                                            The Fund finished flat against the benchmark during May. The Fund’s
    200

                                                                                                            overweight to high beta stocks and underweight to stocks with high
                                                                                                            dividend yield values were both penalized during the period, as
    180


                                                                                                            investors sought safety in defensive stocks.
    160


                                                                                                            Stock selection detracted most from returns in the consumer
    140

                                                                                                            discretionary (Lowe’s) and financial (MetLife) sectors. In addition,
                                                                                                            underweights to the consumer staples and utilities sectors detracted
    120


                                                                                                            from returns, but stock selection among health care and producer
    100


                                                                                                            durables stocks proved additive.
     80

     60                                                                                                     Cornerstone was the best-performing manager, benefiting from its
                                                                                                            defensively positioned portfolio. In contrast, First Eagle’s high beta,
                                                                                                            low dividend yield bias went unrewarded.
     40

     20

     0
     Jan-98    Jun-99   Oct-00     Mar-02     Jul-03   Dec-04   Apr-06   Sep-07       Jan-09   May-10
(1) Performance is quoted gross of management fees.
Monthly Report                                                                                                                                      May 2011



Manager Review

 Manager                 Approach / Process       Excess Return                                          Russell Analysis
 MFS Institutional       Value                       -0.1%        MFS had a relatively flat month, despite its more defensively focused value strategy proving
 Advisors                                                         favourable in the market environment. An underweight position among utilities stocks was the
                                                                  major laggard on performance, specifically telecommunications and electrical producers.
                                                                  Elsewhere, stock picking within the health care sector detracted, notably within biotechnology
                                                                  research & production (Amgen).
 Montag & Caldwell       Growth                       0.5%        Montag outperformed during the month as its more consistent, higher quality strategy was
                                                                  rewarded. It benefited from its emphasis on low beta and high dividend yielding stocks, while
                                                                  an underweight to stocks with high three month and twelve month price momentum was also
                                                                  rewarded. Stock selection contributed to returns in the health care and consumer
                                                                  discretionary sectors. Montag’s overweight position to the consumer staples and consumer
                                                                  discretionary sectors both contributed to excess returns during the month.
 Institutional Capital   Value                       -0.8%        ICAP underperformed during the month due to negative stock selection effects. Stock
 Corporation                                                      selection was worst in the consumer discretionary (Staples, Lowe’s) and financial services
                                                                  (AFLAC, MetLife, Goldman Sachs Group) sectors. Despite underperforming during the
                                                                  month, ICAP was well positioned with regard to sector allocation, with an overweight to the
                                                                  health care sector and an underweight to financial services stocks.
 Columbus Circle         Growth                      -0.3%        Columbus Circle underperformed the Index during the month, as its overweight to stocks with
                                                                  high betas and high price momentum were both penalized. Stock selection was the largest
                                                                  detractor of returns, notably among consumer discretionary (Las Vegas Sands, priceline.com)
                                                                  and producer durables (Deere & Co, Caterpillar) stocks. In addition, Columbus Circle’s
                                                                  underweight to the consumer staples sector proved detrimental during the month.
 Cornerstone             Growth                       1.0%        Cornerstone outperformed the Russell 1000 Index and was the Fund’s best performing
                                                                  manager during May. Stock selection, as with the first quarter of 2011, was the leading driver
                                                                  of returns. Cornerstone benefited most from its effective selection in the health care sector,
                                                                  where exposures to biotechnology research & production groups led returns. Cornerstone
                                                                  also generated excess returns from its overweight to the health care sector and an
                                                                  underweight to energy stocks.
 First Eagle             Market - Oriented           -1.7%        First Eagle underperformed the Russell 1000 Index due to negative factor allocation and
                                                                  stock selection effects. The manager’s overweight to stocks with high betas and low dividend
                                                                  yield values also detracted from returns during the month. Stock selection detracted most
                                                                  from returns in the utilities (Comcast) and financial services (NYSE Euronext) sectors. First
                                                                  Eagle’s overweight to the energy sector and underweight to the consumer staples sector also
                                                                  weighed on returns.
 Levin                   Market - oriented with      -0.7%        Levin underperformed the Russell 1000 Index due primarily to negative stock selection
                         value bias                               effects. Stock selection detracted most from returns in the financial services (MetLife,
                                                                  JPMorgan Chase, Citigroup), consumer discretionary (Lowe’s, Omnicom) and energy (Devon
                                                                  Energy, Williams) sectors. In addition, an underweight to the utilities sector and an
                                                                  overweight to the producer durables sector both detracted from returns.
Monthly Report                                                                                                                                 May 2011



Manager Review (...Continued...)

 Manager           Approach / Process      Excess Return                                           Russell Analysis
 Suffolk Capital   Market - Oriented          -0.4%        Suffolk’s overweight to stocks with high earnings per share variability (cyclicality) was
 Management                                                penalised during the month. An underweight to stocks with high dividend yields also
                                                           detracted from performance. Stock selection within the financial services sector was the
                                                           major hindrance on returns, with positions among multi-line insurers proving the most
                                                           detrimental. In contrast, positive stock picking within retail (Abercrombie & Fitch) in the
                                                           consumer discretionary sector pared losses somewhat.
 Select Holdings   "Best" Ideas               -0.8%        The Select Holdings strategy fell behind the benchmark during the month, as selection within
                                                           the producer durables (aerospace), financial services (banking) and energy sectors
                                                           (integrated oil) detracted from returns. An underweight to the outperforming consumer staples
                                                           sector also proved detrimental. In contrast, the strategy did add gains through positions
                                                           among technology stocks, notably within the computer services software & systems industry.
 Sound Shore       Value                      -0.2%        Value manager Sound Shore finished broadly in line with the benchmark during the month.
                                                           Whilst significant returns were added through positive selection within the energy (El Paso,
                                                           EQT) and health care sectors (Novartis, Baxter International), an overweight position among
                                                           consumer discretionary stocks (eBay) pared gains. Meanwhile, a large underweight to utilities
                                                           (AT&T), as well as ineffective allocation among technology stocks (production technology
                                                           equipment) also went unrewarded.
 Pzena             Deep value, long-term      -0.5%        Pzena, a value manager, finished behind the benchmark during the period. Stock picking
                   view                                    within the financial services sector was the major laggard, specifically within the multi-line
                                                           and property insurance industry (Allstate). Meanwhile, a significant underweight position
                                                           among consumer staples proved detrimental to performance; minimal exposure to Procter &
                                                           Gamble weighed on performance as the stock led gains among companies whose earnings
                                                           are least-dependant on economic growth, which are typically favoured during times of
                                                           economic uncertainty.
Monthly Report                                                                                                                                                                                            May 2011



Fund Statistics

    Manager Weights                                                                                          Characteristics                                         Fund                         Benchmark
                                                                                                             Sector Deviation                                        5.58                                 --
       Suffolk Capital Management: 11%
       MFS Institutional Advisors: 10%                                                                       Market Cap Weighted Nlog                                0.10                                 --
     I

       Montag & Caldwell: 11%
     I

                                                                                                             Price/Earnings (excl negative
       Select Holdings: 5%
                                                                                                                                                                     16.22                               16.16
     I

       Institutional Capital Corporation:                                                                    earnings)
     I

     12%
     I

     I Sound Shore: 8%                                                                                       Dividend Yield                                          1.68                                1.82
     I Columbus Circle: 11%
     I Cornerstone: 10%                                                                                      Price to Book                                           2.21                                2.36
     I First Eagle: 6%
     I Pzena: 7%                                                                                             EPS Growth (1 Year)                                     25.93                               25.93
     I Levin: 9%
                                                                                                             Tracking Error                                          Fund                       Average Manager
                                                                                                             One Year                                                 1.2                                 2.7
                                                                                                             Three Years                                              2.4                                 5.5
                                                                                                             Five Years                                               2.4                                 5.2

Fund Analysis

    Sector Exposure1                                                  Fund%            Benchmark %                                                         Sector Returns
    Consumer Discretionary                                             16.6                  12.8                                                             -0.1


    Consumer Staples                                                    8.3                   8.7                                                                                                  2.9


    Energy                                                             12.3                  12.3            -4.4


    Financial Services                                                 16.3                  16.3                                     -2.5


    Health Care                                                         11.9                 11.4                                                                                         2.1


    Materials & Processing                                              4.3                   4.4                                            -2.1


    Producer Durables                                                   11.7                 11.9                              -2.8


    Technology                                                         15.7                  16.1                                                   -1.5


    Utilities                                                           2.9                   6.2                                                                                  1.7



1
    Sector Weights may not sum to 100% due to rounding.


Top Ten Holdings

    Company Name                                      Fund%                    Benchmark %                                  Country                                                      Sector
    Pfizer, Inc.                                         2.4                         1.2                                United States                                             Health Care
    Apple, Inc.                                          2.2                         2.3                                United States                                             Technology
    JPMorgan Chase & Co.                                 2.1                         1.2                                United States                                        Financial Services
    Oracle Corp.                                         1.9                         0.9                                United States                                             Technology
    MetLife, Inc.                                        1.8                         0.2                                United States                                        Financial Services
    Qualcomm, Inc.                                       1.7                         0.7                                United States                                             Technology
    Devon Energy Corp.                                   1.4                         0.3                                United States                                                Energy
    PepsiCo, Inc.                                        1.3                         0.8                                United States                                        Consumer Staples
    ACCENTURE PLC                                        1.3                         0.3                                United States                                        Producer Durables
    Minnesota Mining &
                                                         1.2                         0.5                                United States                                        Producer Durables
    Manufacturing Co.




This material is not intended for distribution to retail clients. This material does not constitute an offer or invitation to anyone in any jurisdiction to invest in any Russell product or use any Russell services
where such offer or invitation is not lawful, or in which the person making such offer or invitation is not qualified to do so, nor has it been prepared in connection with any such offer or invitation.
Unless otherwise specified, Russell Investments is the source of all data. All information contained in this material is current at the time of issue and, to the best of our knowledge, accurate. Any opinion
expressed is that of Russell Investments, is not a statement of fact, is subject to change and, unless it relates to a specified investment, does not constitute the regulated activity of “advising on investments”
for the purposes of the Financial Services and Markets Act 2000.
The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.
Any forecast, projection or target is indicative only and not guaranteed in any way. Any past performance figures are not necessarily a guide to future performance.
Any reference to returns linked to currencies may increase or decrease as a result of currency fluctuations. Any references to tax treatments depend on the circumstances of the individual client and may be
subject to change in the future.
Copyright © 2011 Russell Investments Limited
Issued by Russell Investments Limited. Company No. 02086230. Registered in England and Wales with registered office at: Rex House, 10 Regent Street, London SW1Y 4PE. Telephone 020 7024 6000.
Authorised and regulated by the Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS.
Datasource - © 2010 Morningstar, Inc All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not
warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no
guarantee of future results.

				
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