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European Quality Fund - EQF |
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Strategy
EQF invests in European companies with a stable profit growth, i.e. companies that the portfolio managers estimate have the ability to keep profit levels even during a recession. The portfolio is highly concentrated, with 18-25 holdings. The investment perspective has a longer time horizon in the sense that there is no short-term trading. As the portfolio management allocates only with individual stock potential in mind, instead of according to their relation to weights in different indices, the fund performance can differ substantially from the market performance. The portfolio management is based on quantitative and qualitative investment criteria which have been tested for several years. This model offers the portfolio management a solid support for decisions regardless of scenarios.
Ambition and performance
The ambition is to give the investors a return of 10-15% p.a., at a lower risk than for the European benchmark index. In the years 1996-2009 the fund has had an average annualized growth of 6.7% in EUR.
Portfolio managers
The portfolio managers are Carl Bernadotte (born in 1955) and Stefan Karlsson (born in 1965). They also manage the hedge fund CB Hedge Europe.
Domicile
Formally, EQF consists of two separate funds that are co-managed and have identical investment portfolios. The funds are European Quality Fund Sicav (39937) and European Quality Fund Ltd (17810). The first is a so-called Sicav (adhering to the UCITS-regulation) domiciled in Luxembourg and launched June 2, 2000. The second fund has its domicile on the British Virgin Islands, it was launched in November 1995 and is divided into two sub-funds: EQF Ltd Accumulation and EQF Ltd Distribution. All in all, EQF has three sub-funds (share classes).
The fund administration is handled by Crédit Agricole Investor Services Bank in Luxemburg, which also has a number of representatives in the EQF board.
Dividend, ISIN-codes and fees
The three different share classes of the fund have the following dividend policy:
EQF Sicav - Dividend 0% ISIN-kod LU0112589486
EQF Ltd Acc - Dividend 0% ISIN-kod VGG3193X1015
EQF Ltd Distr - Dividend 6% p.a.* ISIN-kod VGG3193T1268
*Shareholders in EQF Ltd. Distribution receive an annual dividend of 6% of the net asset value (NAV) as of October 31 every year, paid out in November. If the fund has a negative performance two years in a row, the board of the fund has the possibility to lower or completely drop the dividend the third year.
Subscription/Redemption fee 1.0%, management fee 1.5% p.a.
Net Asset Value (NAV)
The NAV of the Fund is updated on a daily basis and is always the market value of the stock portfolio plus liquid assets, and net of fund fees and costs. The NAV is quoted in Swedish newspapers as well as in the Financial Times. The fund currency is Euro (EUR).
The Board of the Fund
- Phillippe Bens - Crédit Agricole Investor Services Bank (Sicav)
- Ulf Buhne - Dresdner Kleinwort Benson (Sicav & BVI)
- Lawrence Chapin - USA (Sicav & BVI)
- France Colas – Credit Agricole Investor Services Bank (Sicav)
- Carl Bernadotte - CB Asset Management AB (Sicav & BVI)
Fund Auditors
PricewaterhouseCoopers S.àr.l.
400, route d'Esch B.P 1443
L-1471 Luxembourg
Subscription form, please click here.
For the latest monthly report, August 2010, please click here.
Prospectus EQF SICAV, please click here.
Placing Memorandum EQF Ltd, please click here.
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