Portfolio updates

CT QR Series European Equity Active UCITS ETF (QREU)

Top 10 Underweights - 31 January 2026

Stock
Rationale
Relative weight
1. SAP SE
SAP (Information Technology) shows weak quality and valuation metrics, with negative accruals being the largest detractor.
-1.49%
2. Schneider Electric SE
Schneider Electric (Industrials) is negative across valuation, quality, and catalyst considerations, with valuation and catalyst being the most adverse. It appears broadly expensive from a valuation standpoint (using metrics such as cash flow yield, earnings yield, deep value, and shareholder yield) and shows signs of weaker underlying fundamentals, including poor price momentum and subdued business momentum.
-1.11%
3. UBS Group AG
UBS (Financials) shows negative quality characteristics, with poor and volatile profitability the largest detractors.
-1.06%
4. Airbus Group SE
Airbus (Industrials) appears relatively expensive across all valuation categories. While it shows some modestly positive catalyst signs, this is not enough to make up for poor valuations and neutral quality characteristics.
-0.96%
5. British American Tobacco p.l.c.
British American Tobacco (Consumer Staples) is excluded under Article 8 criteria.
-0.92%
6. Safran SA
Safran (Industrials) was excluded under Article 8 criteria at the time of the fund launch.
-0.91%
7. Roche Holding AG
Roche (Health Care) has an underweight due to its ESG Materiality score, applying our Article 8 standards.
-0.90%
8. Zurich Insurance Group AG
Zurich Insurance (Financials) ranks poorly particularly because of its weak catalyst score, including significantly negative analyst EPS estimate revisions. It is also weak on valuation, particularly earnings yield.
-0.73%
9. Rheinmetall AG
Rheinmetall (Industrials) is negative across value and catalyst considerations, with value being the most adverse. It appears broadly unattractive from a valuation standpoint (using metrics such as cash flow yield, earnings yield and shareholder yield) and shows signs of weaker underlying fundamentals, including softer earnings characteristics and subdued business momentum.
-0.69%
10. EssilorLuxottica SA
EssilorLuxottica (Consumer Discretionary) scores negatively across valuation and quality, ranking expensive across all four valuation subthemes and having poor efficiency.
-0.65%

Quick Response - Stocks removed since rebalance

Date of sale
Stock removed since rebalance
Rationale
Weight before sale
2 June 2026
Aker BP ASA
Aker BP ASA (Energy – Oil & Gas Exploration & Production) was downgraded triggered by a marked deterioration in Value following a period with lower Quality indicators. Simultaneously, the Catalyst metrics we monitor have been volatile but trending down since the start of the year. Specifically on the Value side, the stock screens less attractively versus peers, with weaker Earnings Yield and declining Shareholder Yield weighing on its relative positioning. The softer Quality metrics include weaker Capital Allocation, declining Business Sustainability, and lower Earnings Quality.
0.11%
28 April 2026
Diageo plc
Diageo plc (Consumer Staples – Beverages) was downgraded following a weakening in momentum related indicators. Recent signals point to slowing business momentum, alongside weak share price performance versus peers, which has reduced confidence in near term performance. While the company’s Value and Quality characteristics remain broadly average relative to the peer group, they are insufficient to offset the deterioration in momentum. This combination of softer business trends and lack of price support justified the decision to exit the position.
0.40%
2 April 2026
The Magnum Ice Cream Company
The Magnum Ice Cream Company was downgraded following a broad weakening across Value, Quality, and Catalyst indicators after its fourth quarter 2025 results. Cash flow based valuation measures deteriorated, while Quality metrics softened due to weaker earnings quality, capital allocation, and business sustainability signals. At the same time, business momentum indicators declined, culminating in the stock’s ultimate fall to the lowest relative rating.
0.07%
23 March 2026
Swiss Life Holding AG
Swiss Life Holding AG (Financials – Insurance) faces persistent challenges in value and a more recent downturn in catalyst indicators. The fourth quarter 2025 results contributed to weaker business momentum signals, further dragging on the catalyst score. Meanwhile, valuation measures such as earnings yield continued to screen below peer levels, reinforcing the stock’s relative expensiveness. With both momentum and valuation characteristics unfavourable, the name is positioned in the lowest alpha tier, prompting the sale.
0.35%
23 March 2026
Admiral Group plc
Admiral Group plc (Financials – Insurance) was downgraded following broad based weakening across all three quality, value and catalyst factors. The company’s preliminary fourth quarter 2025 results highlighted a softening in forward dividend growth, pressuring its quality score. At the same time, catalyst indicators deteriorated as business momentum inputs turned less supportive. On valuation, Admiral screens as relatively expensive versus sector peers, with higher market value metrics contrasted against lower reported earnings. The declining multi factor profile resulted in a more cautious assessment and ultimately justified the sale.
0.11%
19 March 2026
Banca Monte dei Paschi di Siena S.p.A.
Banca Monte dei Paschi di Siena (Financials – Banks) was downgraded following a marked weakening in its overall alpha profile, driven primarily by softer Business Momentum indicators. Recent model inputs reflected lower earnings revision trends as well as less supportive signals from text based earnings response metrics, both of which contributed to a deterioration of its overall assessment. Since late 2025, quality signals have also drifted lower, particularly due to reduced forward dividend growth expectations. This broad based softening across key factor pillars ultimately moved the stock toward the lower end of the ranking spectrum, prompting the exit.
0.14%
19 March 2026
Euronext N.V.
Euronext N.V.`s (Financials – Exchanges & Data Services) value characteristics have remained challenged for several quarters, with themes such as deep value comparing unfavorably to peers. Following its third quarter 2025 reporting cycle in November, additional pressure emerged from increased share count growth, further worsening value related indicators. More recently, quality signals specifically in areas linked to capital allocation also softened, eroding the residual support for the name. This combination of deteriorating momentum and ongoing relative valuation headwinds resulted in the downgrade and subsequent sale.
0.14%
19 March 2026
BELIMO Holding AG
BELIMO Holding AG (Industrials – Building Technology) saw its rating downgraded as consistently weak value characteristics were compounded by a more recent loss of momentum. In scope of the company’s value factor assessment, both Cash Flow Yield and Earnings Yield screens have remained structurally unattractive versus peers, limiting the stock’s relative appeal. The deterioration in Business Momentum indicators further weighed on the overall alpha profile, reducing confidence in near term earnings signals. With valuations remaining stretched and momentum signals weakening, the stock moved firmly into our lowest rating, supporting the decision to exit.
0.08%
12 February 2026
ROCKWOOL A/S
ROCKWOOL A/S (Materials – Construction Materials) was downgraded following signs of weakening in its earnings profile and cash generation trends. Recent financial disclosures show pressure on profitability, with lower net income and reduced free cash flow driven by margin compression and increased investment needs. These operational dynamics have softened the overall assessment of the company within its industry.
0.50%
12 February 2026
Universal Music Group N.V.
Universal Music Group N.V. (Communication Services – Entertainment) was downgraded amid fluctuations in key financial indicators, partly influenced by its position within a small and concentrated European entertainment peer group. While the company continues to deliver strong operational momentum across recorded music, publishing, and merchandising, its elevated valuation levels and relative sector positioning contributed to a weaker ranking.
0.25%
12 February 2026
Saab AB
Saab AB (Industrials – Aerospace & Defense) was downgraded due to slight softening in earnings related metrics against the backdrop of a sharp share price rally. The stock has surged amid heightened geopolitical tensions, with defense companies experiencing strong inflows and renewed investor attention. Although Saab continues to benefit from robust demand and record order activity, the rapid appreciation of its share price has outpaced underlying earnings dynamics.
0.03%

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