# Management commentary
August was the opposite of July. The equity markets lost the ground gained the previous month, with even more negative performance for the markets of peripheral Europe. The figures published in the United States confirmed the extremely strong economy. Europe meanwhile showed stabilisation/slight improvement after a series of disappointing figures. The concern spread following discussions from the Italian government about its budget and the possible failure to comply with the European Union rules. Long rates fell, except for Italian rates. The Turkish currency depreciated significantly as the crisis spread. At the same time the United States maintained pressure on its trading partners with the negotiation of customs duties. Finally, the oil barrel price rose.

### In this context, healthcare, industry and consumer staples stood out. Conversely financial stocks significantly underperformed, along with telecoms.
The portfolio underperformed its benchmark index. Discretionary consumption (Continental, Paddy Power), financials (BNP Paribas, BBVA, Intesa SanPaolo) and Bayer made a negative contribution. Philips, Lonza and Shire made a positive contribution.

### In terms of movements, we purchased Saint Gobain and reinforced Siemens. We reduced Bayer, Lonza and Capgemini.
The second quarter results confirmed the profit growth prospects in Europe (approximately 9% for this year). The recent fall of the euro against the dollar is a positive factor for the competitiveness of companies in the zone. The recent fall therefore opens some opportunities. We continue to favour companies that can deliver results consistently throughout the cycle within a balanced portfolio.
August was the opposite of July. The equity markets lost the ground gained the previous month, with even more negative performance for the markets of peripheral Europe. The figures published in the United States confirmed the extremely strong economy. Europe meanwhile showed stabilisation/slight improvement after a series of disappointing figures. The concern spread following discussions from the Italian government about its budget and the possible failure to comply with the European Union rules. Long rates fell, except for Italian rates. The Turkish currency depreciated significantly as the crisis spread. At the same time the United States maintained pressure on its trading partners with the negotiation of customs duties. Finally, the oil barrel price rose.

### In this context, healthcare, industry and consumer staples stood out. Conversely financial stocks significantly underperformed, along with telecoms.
The portfolio underperformed its benchmark index. Discretionary consumption (Continental, Paddy Power), financials (BNP Paribas, BBVA, Intesa SanPaolo) and Bayer made a negative contribution. Philips, Lonza and Shire made a positive contribution.

### In terms of movements, we purchased Saint Gobain and reinforced Siemens. We reduced Bayer, Lonza and Capgemini.
The second quarter results confirmed the profit growth prospects in Europe (approximately 9% for this year). The recent fall of the euro against the dollar is a positive factor for the competitiveness of companies in the zone. The recent fall therefore opens some opportunities. We continue to favour companies that can deliver results consistently throughout the cycle within a balanced portfolio.
August was the opposite of July. The equity markets lost the ground gained the previous month, with even more negative performance for the markets of peripheral Europe. The figures published in the United States confirmed the extremely strong economy. Europe meanwhile showed stabilisation/slight improvement after a series of disappointing figures. The concern spread following discussions from the Italian government about its budget and the possible failure to comply with the European Union rules. Long rates fell, except for Italian rates. The Turkish currency depreciated significantly as the crisis spread. At the same time the United States maintained pressure on its trading partners with the negotiation of customs duties. Finally, the oil barrel price rose.

### In this context, healthcare, industry and consumer staples stood out. Conversely financial stocks significantly underperformed, along with telecoms.
The portfolio underperformed its benchmark index. Discretionary consumption (Continental, Paddy Power), financials (BNP Paribas, BBVA, Intesa SanPaolo) and Bayer made a negative contribution. Philips, Lonza and Shire made a positive contribution.

### In terms of movements, we purchased Saint Gobain and reinforced Siemens. We reduced Bayer, Lonza and Capgemini.
The second quarter results confirmed the profit growth prospects in Europe (approximately 9% for this year). The recent fall of the euro against the dollar is a positive factor for the competitiveness of companies in the zone. The recent fall therefore opens some opportunities. We continue to favour companies that can deliver results consistently throughout the cycle within a balanced portfolio.

Translation (ENES, 2018-08-31):
# Comentario de gestión
Agosto ha sido todo lo contrario al mes de julio. Los mercados de renta variable han perdido el terreno ganado el mes anterior, con una rentabilidad más negativa todavía para los mercados de la periferia de Europa. Los datos publicados en Estados Unidos confirman el fuerte dinamismo de la economía. Por su parte, Europa ha mostrado cierta estabilización/ligera mejoría tras una serie de datos decepcionantes. La inquietud se ha propagado tras las discusiones del gobierno italiano sobre su presupuesto y sobre el posible incumplimiento de las normas de la Unión Europea. Los tipos largos se han replegado, salvo los italianos. La divisa turca se ha depreciado considerablemente frente a la propagación de la crisis. Al mismo tiempo, Estados Unidos ha mantenido la presión sobre sus socios comerciales con la negociación de aranceles aduaneros. Finalmente, el barril de petróleo se ha encarecido.
En este contexto, la salud, la industria y el consumo corriente han destacado al alza, al contrario que los valores financieros, que se han hundido, así como los de telecomunicaciones.
La cartera ha evolucionado por debajo de su índice de referencia. El consumo discrecional (Continental, Paddy Power), las finanzas (BNP Paribas, BBVA, Intesa SanPaolo) y Bayer han registrado contribuciones negativas, mientras que la aportación de Philips, Lonza y Shire ha sido positiva.
Por movimientos, hemos comprado Saint Gobain y hemos reforzado Siemens, al tiempo que hemos reducido Bayer, Lonza y Capgemini.
Los resultados del segundo trimestre confirman las perspectivas de crecimiento positivo en Europa (cerca del 9% para este año). La reciente depreciación del euro frente al dólar es un elemento positivo para la competitividad de las empresas de la zona ya que brinda algunas oportunidades. Seguimos apostando por empresas capaces de generar resultados de forma consistente a lo largo de todo el ciclo de vida, dentro de una cartera equilibrada.