Every month in IPE we analyse the portfolio style of a fund using the return-based Portfolio Analyser developed by London-based firm Style Research.
For this issue we have chosen the CCF/Fram Euro Smaller Companies fund, managed by Paris-based managers Framlington Unit Management.
The fund invests in smaller companies in continental Europe and was launched in 1987.
The Portfolio Analyser allows to make different adjustments regarding sector and country. In this occasion our analysis has been sector-adjusted.
The graph shows the changes that the portfolio has had during 12 months, starting in February 2000. It is based on the fund’s monthly historical data for the last four years provided by Standard & Poor’s Micropal.
The investment objective of the fund is to achieve long-term capital growth, and this approach is reflected on its investment style. At the end of April almost 70% of the fund’s assets were invested in small growth equity. The percentage of total assets invested in small growth investments has grown considerably since February 2000, when, according to this analysis, only 31% of assets were invested this way. At that time around 70% of the fund’s portfolio was invested in small value investments. During the following months, the proportion of small growth stocks increased significantly, representing 63% of total investments in May last year.
At the end of September 2000, the proportion of small growth and small value stocks of the portfolio was similar, representing 48% and 52% of total assets respectively. Since then, small growth investments have increased their weight, amounting to 74% of the portfolio at the end of March.
The CCF/Fram Euro Smaller Companies fund has been rated with two stars by Standard & Poor’s and has a three-year performance of 1.28% with a volatility of 8.32.