ODDO BHF Asset Management


Recent performance YTD:
On a YTD basis (at COB 31st May), ODDO BHF ARTIFICIAL INTELLIGENCE has generated, on its main share class (Ciw USD) an absolute performance of +6,9%; which translates in an under -performance of 445bp vs its benchmark (MSCI World DC). On its CR EUR share class the absolute performance is  +6,64%.
Most recent changes: Quarterly Rebalancing took place of 3rd June 2021
Our quarterly rebalancing (that took place on the 3rd of June) has led to the following changes:
The tracking error of the fund has been increased and the fund has been tilted overall with a stronger growth profile overall. In particular, the weight of Software sector has been increased to 28% (from 20%) while the weight of semi-conductor has stayed high at 20%. As an offset to that the weight of sector like Healthcare or Transportation has been trimmed By geographies, after rough times since mid Feb with have decided to stick with our Taiwan exposure (9% of the fund) and to double down on China (circa 12% of the fund now). Korea has been halved to 2,5% of the fund; while Japan has stayed low at 2,5% of the fund as well. 3 European companies have entered the strategy in the fields of semiconductors, Biotech and Artificial Intelligence. The exposure to North America has stayed high (63% of the fund) The overall ESG rating of the fund is A (according the MSCI Methodology) in line with the one our benchmark (MSCI World Developed Countries)
Beta – Tracking Error – Information ratio over the past 12 months (ex post)

  • Beta : 0.89
  • Tracking error  : 11,7%
  • Information ratio: -0,53

Performance for the month of May 2021: 
Although May 2021 was dominated by investors’ fears over the risk of inflation, our AI fund posted negative absolute performance, underperforming its benchmark (MSCI World Developed Countries) by some margin.
Our best contributors to performance this month were: 1) Commvault (small cap, US, cybersecurity), which published excellent quarterly results that suggest it is on course to reach its goal of increasing sales by a CAGR of 6-7% until 2023 and which is benefiting from a favourable context for cybersecurity firms, owing to mounting numbers of cyberattacks; 2) TFI International (small cap, Canada, transport) whose quarterly results were significantly higher than the consensus expectation while also offering visibility as to the continuation of positive business trends for the group (in relation to both the parcel and mail divisions and the logistics division, in which the integration of DLS is progressing well).
The main drags on performance over the month were: 1) Mercury Systems (small cap, US, technology), which published disappointing quarterly results and forward guidance owing to a backlog on major public contracts; 2) New Oriental Education, which has been adversely affected by a slew of regulations (restrictions on marketing, threats of a ban on extracurricular tutoring at the weekend and COVID restrictions in certain provinces).
Contribution (%) : Best & Worst Stocks month of May 2021 (only the last month):

  • Best stocks: TFI International 0,21 %, Commvault 0,21% Veeva 0,15%,
  • Worst stocks: Mercury Systems -0,76%, New Oriental Education -0,54%, Joyy -0,52%

Contribution (%): Best & Worst Stocks 2021 (YTD at 31st May 2021 COB):

  • Best stocks: TFI International 1,80%, Alphabet 1,09%, Netease 1,04%
  • Worst stocks: New Oriental -0,64%, JD.com -0,60 %, Samsung Electro Machanics -0,53%

AUM at the end of May 2021:
The AUM of the fund have reached USD 282 m (or circa EUR 231m).