September, 2023
Following a robust rally for stocks in the first half of 2023, the third quarter offered something of a reality check. On one hand, developed market equities fell by 3.4% over the quarter, taking year-to-date returns lower to 11.6%. On the other hand, a sell-off in global bond markets was partly to blame for the pressure on risk assets, with the global aggregate bond benchmark falling by 3.6% in the third quarter. As bonds and stocks fell simultaneously, commodities were the notable outperformer, returning 4.7% over the quarter, echoing the market dynamics of 2022. Headwinds to the global economy posed by tight oil markets also caught the attention of investors, with Brent Crude oil prices rising by 28% over the quarter. In sum, the smooth sailing for risk assets in the first half of the year looked unlikely to continue indefinitely in the face of a slowing global economy. Despite the resilience witnessed in economic activity to date, recession risks remain elevated and not all parts of the market appear appropriately priced for such a scenario.
Key Stock Contributors and Detractors
During the third quarter, at a stock level, the Fund derived positive performance from Novo Nordisk, Splunk and Automatic Data Processing.
Novo Nordisk is an overweight position in Health Care due to its good scores on Quality, Growth and Sentiment. Novo Nordisk develops, produces, and markets pharmaceutical products. The company focuses on diabetes care and offers insulin delivery systems and other diabetes products. Novo Nordisk also works in areas such as haemostasis management, growth disorders, and hormone replacement therapy. The company offers educational and training materials. This quarter, shares jumped over 19% to hit a fresh record high after a study of its blockbuster obesity medicine Wegovy found the drug reduced the risk of heart attacks and strokes. During this Q3, Novo Nordisk was up by 17.2% versus the MSCI World. Candriam’s ESG rating is 2.
Splunk is an overweight position in Information Technology, due to its good scores on Sentiment and Value. Splunk develops web-based application software. The Company provides software that collects and analyses machine data generated by websites, applications, servers, networks, and mobile devices. In Q3, the Splunk share price increased by 38.5%. The first meaningful increase was in August, after the infrastructure-software company reported second-quarter revenue that beat estimates and raised its fullyear forecast beyond expectations, then in September, after Cisco Systems agreed to buy Splunk. During this Q3, Splunk was up by 41.2% versus the MSCI World. Candriam’s ESG rating is 4.
Automatic Data Processing is an overweight position in Industrials due to its good score on Quality. Automatic Data Processing is a global provider of business outsourcing solutions. The Company’s services include a wide range of human resource, payroll, tax, and benefits administration solutions.
Automatic Data also provides solutions to auto, truck, motorcycle, marine, and recreational vehicle dealers. ADP shares saw a 9.5% increase in Q3, after reporting fourth quarter adjusted earnings per share that beat the consensus estimate. During this Q3, Automatic Data Processing was up by 13.4% versus the MSCI World. Candriam’s ESG rating is 2.
Three stocks that contributed negatively to excess return during the period included Insulet, Adyen and Vir Biotechnology
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In August, market volatility increased, reflecting renewed stress in the Chinese property market, weak macroeconomic data out of China and an increase in sovereign bond yields. Given this backdrop, global stocks sold-off and the MSCI All Country World Index declined 2.8% over the month in US dollar terms. Developed markets outperformed emerging markets with a loss of 2.3% versus a loss of 6.1% respectively. Yields on the 10-year US Treasury increased by 16 basis points to 4.1%. Even though inflation pressures are receding, risks have not entirely disappeared, and central banks will likely have to maintain restrictive policies beyond 2023.
Key Stock Contributors and Detractors
During the month, at a stock level, the Portfolio derived positive performance from Novo Nordisk, Eli Lilly and Company and Arista Networks.
Novo Nordisk is an overweight position in Health Care due to its good scores on Quality, Growth and Sentiment. The company develops, produces, and markets pharmaceutical products. It focuses on diabetes care and offers insulin delivery systems and other diabetes products. Novo Nordisk also works in areas such as haemostatis management, growth disorders and hormone replacement therapy. The company offers educational and training materials. Novo Nordisk shares were up 25.5% following a big jump after a study of its blockbuster obesity medicine Wegovy found the drug reduced the risk of heart attacks and strokes. During this month, Novo Nordisk was up 17.8% versus MSCI World. Candriam’s ESG rating is 2.
Eli Lilly and Company is an overweight position in Health Care, due to its good scores on Quality and Growth. It discovers, develops, manufactures and sells pharmaceutical products for humans and animals. The company products are sold in countries around the world. Eli Lilly products include neuroscience, endocrine, anti-infectives, cardiovascular agents, oncology and animal health products. In August, the share price jumped by 21% after the drugmaker boosted its revenue guidance for the full year above the average analyst estimate. During this month, Eli Lilly and Company was up 24.5% versus MSCI World. Candriam’s ESG rating is 3.
Arista Networks is an overweight position in Information Technology due to its good scores on Quality, Sentiment and Growth. The company offers ethernet switches, pass-through cards, transceivers and enhanced operating systems. Arista Networks also provides host adapter solutions and networking services. Arista Networks markets its products worldwide. This month, Arista shares were up 26% after the communications equipment company reported second-quarter results that beat expectations and gave a revenue forecast that is above the consensus analyst estimate. During this month, Arista Networks was up 28.2% versus MSCI World. Candriam’s ESG rating is 5.
Three stocks that contributed negatively to excess return during the period included Adyen, Insulet and Fortinet.
Adyen is an overweight position in Financials due to its good score on Quality and Growth. The company offers a platform that enables merchants and businesses to process payments online, mobile, and point-of-sale systems with payment methods including card schemes, mobile wallets, and other local methods. In August, Adyen’s share price dropped by over 54% after the payment firm’s processing volume, revenue growth and profitability all missed estimates in the first half. The miss on most lines prompted analyst concerns that competition over pricing is heating up, causing the company to keep a high level of spending and sacrifice margins as a result. During this month, Adyen NV was down almost 52.6% versus the MSCI World. Candriam’s ESG rating is 5.
Insulet is an overweight position in Health Care due to good scores on Growth, Sentiment and Volatility. The company develops, manufactures, and markets an insulin infusion system for people with insulin-dependent diabetes. Insulet
markets its products in the United Kingdom, Canada and United States. Insulet shares declined by over 30%, along with all medicaldevice makers drug companies, following obesity drug results as these companies may see short-term impact on certain procedures such as bariatrics. During this month, Insulet Corporation was down almost 28.4% versus the MSCI World. Candriam’s ESG rating is 4.
Fortinet is an overweight position in Information Technology due to a good score on Quality. The company offers network security appliances, software and subscription services. Fortinet systems integrate the industry’s broadest suite of security technologies, including firewall, VPN, antivirus, intrusion prevention (IPS), web filtering, antispam and traffic shaping. Fortinet shares dropped by 21% in August after the cybersecurity firm cut its revenue and billings guidance for the year, while reporting what analysts described as a weak second quarter. The warning fuelled concerns over whether this represents the start of a more prolonged slowdown in demand. During the month, Fortinet was down almost 20.2% versus the MSCI World. Candriam’s ESG rating is 4
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Key Stock Contributors and Detractors
During the second quarter, at a stock level, the Fund derived positive performance from Owens Corning, Eli Lilly and Company, and Microsoft.
Owens Corning is an overweight position in Industrials, due to its good score on Value. Owens Corning (OC) produces residential and commercial building materials, glass-fiber reinforcements, and engineered materials for composite systems. This quarter, the share price jumped by 35%. OC reported Q1 revenues and EBITDA ahead of street expectations. OC returned $183m to shareholders in Q1 through dividends and share repurchases. During this Q2, Owens Corning was up by 29.2% versus the MSCI World. Candriam’s ESG rating is 3.
Eli Lilly and Company is an overweight position in Health Care, due to its good score on Quality. Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products for humans and animals. This quarter, the share price outperformed and was up 33%, after the pharmaceutical company reported first-quarter revenue that beat expectations, with sales for its Mounjaro antidiabetic medication notably above the consensus estimate. It also raised its forecast. During this Q2, Eli Lilly and Company was up by 29.9% versus the MSCI World. Candriam’s ESG rating is 3.
Microsoft is an overweight position in Information Technology due to its good score on Quality and Sentiment. Microsoft operates as a software company. This quarter, the share price outperformed and increased by 17%, after the software company’s third-quarter results beat expectations. Analysts highlighted strength in the company’s Azure cloud business and were optimistic about the overall resiliency of the business, leading multiple analysts to upgrade the stock. MSFT shares also have been surfing on the AI, Tech and ChatGPT wave. During this Q2, Microsoft Corporation was up by 11.4% versus the MSCI World. Candriam’s ESG rating is 3.
Three stocks that contributed negatively to excess return during the period included Tesla, Estee Lauder and Agilent Technologies.
Tesla is an underweight position in Consumer Discretionary Services despite its good score on Value and Quality. Tesla operates as a multinational automotive and clean energy company. Tesla owns its sales and service network and sells electric power train components to other automobile manufacturers. This quarter, the share price performance was 31%. Tesla’s discounts have been dramatic both in scale and time span — it’s dropped the starting price of the Model Y by 29% in just over three months. While Tesla remains the top seller of EVs and is in the rare position of manufacturing them profitably at scale, its growth has slowed dramatically as borrowing costs rise and more automakers roll out competitive plug-in models. During Q2, Tesla was up almost 19.2% versus the MSCI World. Candriam’s ESG rating is 3.
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This month saw unemployment at or near historic lows in the eurozone (6.5%), UK (3.9%) and the US (3.4%), with wages are growing strongly. After the end of zero-COVIF and a strong fi rst quarter, Chinese macro data for April indicated a slowdown in activity. Imports dropped 7.9% and industrial production grew only 5.8% year-on-year. Chinese equities underperformed the MSCI Asia exJapan Index, which returned -1.8%. Commodity markets experienced some weakness. Oil ended the month down about 40% from the same time last year. Price declines in industrial metals were also particularly pronounced in May, which is likely a refl ection of lacklustre global demand for goods, and a weakening of commodity-intensive activity in China. However, core infl ation remained stubbornly high in Europe and the US ,and the prospect of sustained strong wage growth has fueled investor concerns that central banks could tighten further, leaving peak policy rates higher than initially expected.
Key Stock Contributors and Detractors
During the month, at a stock level, the Fund derived positive performance from Twilio, ServiceNow and from Alphabet.
Twilio is an overweight position in Information Technology due to its goodServiceNow is an overweight position in Information Technology, due to its good score on Volatility and Value. ServiceNow provides enterprise information technology (IT) management software. The Company designs, develops, and markets a cloud computing platform to help companies manage digital workfl ows for enterprise operations. In May, shares jumped by 22%. This month, ServiceNow announced their fi rst-ever buyback program of $1.5bn.
Last month, ServiceNow reported stronger-than-expected quarterly results and raised its full-year guidance for subscription revenues. NOW also benefi ts from the AI software run. ServiceNow said it would invest $1B in its venture arm by 2026 to back AI and automation startups. This month, ServiceNow was up by 19.5% versus the MSCI World. Candriam’s ESG rating is 4.
Alphabet is an overweight position in Communication Services due to its good score on Quality and Value. Alphabet operates as a holding company. The Company, through its subsidiaries, provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce and hardware products. This month, Alphabet’s share price increased by 17% after Google unveiled its latest artifi cial intelligence tools and launched new hardware at its annual developer conference. Market is optimistic about the speed with which Google incorporates AI into its products and services. This month, Alphabet was up by 15.4% versus the MSCI World. Candriam’s ESG rating is 5.
Three stocks that contributed negatively to excess return during the period included Estee Lauder, Vodafone and Incyte.
score on Value. Twilio develops and publishes Internet infrastructure solutions. The Company offers a cloud computing platform that allow web developers to integrate phone calls, internet protocol voice communications, and text messages into web, mobile, and phone applications. Twilio serves customers worldwide. Twilio’s share price performance was extremely strong this month, up 34%, after The Information reported that activist investor Legion Partners had met with the communication software company’s board of directors and managers to suggest changes to the board. Analysts said the likelihood of more activist pressure after expiration of super-voting rights for Class B shareholders, could be positive for the stock. During this month, Twilio was up by 33.3% versus the MSCI World. Candriam’s ESG rating is 4.
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Economic data showed that April was a positive month for the global economy with growth remaining remarkably resilient in the face of higher interest rates. US, euro zone, and UK Purchasing Managers Index (PMI) surveys all beat expectations, and China’s Q1 GDP print was also stronger than expected. Falling energy prices helped bring headline inflation down in the major developed economies with the contribution from energy turning negative in the US and the Euro Zone. Equity markets continued their rally and have now broadly recovered from March’s tumult. While near-term recessionary risk seems to have receded somewhat, the closure of another US financial institution at the end of April highlights that the cumulative impact of central bank tightening has still not been fully felt by developed economies.
Key Stock Contributors and Detractors
During the month, at a stock level, the Fund derived positive performance from Eli Lilly and Company, Owens Corming and from Novartis AG.
Eli Lilly and Company is an overweight position in Health Care, due to its good score on Growth and Sentiment. Eli Lilly discovers, develops, manufactures, and sells pharmaceutical products for humans and animals. In April, Lily’s shares gained +18% after the pharmaceutical company reported first-quarter revenue that beat expectations, with sales for its Mounjaro antidiabetic medication notably above the consensus estimate. It also raised its forecast. During this month, Eli Lilly and Company was up by 13.5% versus the MSCI World. Candriam’s ESG rating is 3.
Owens Corming is an overweight position in Industrials, due to its good score on Value. Owens Corning produces residential and commercial building materials, glass-fiber reinforcements, and engineered materials for composite systems. The Company offers its products globally to various industries. Shares increased by 11% in April. The company reported EPS and sales above estimates. First-quarter FY23 net sales inched down by 0.6% yearover-year to $2.33 billion, beating the consensus of $2.22 billion. During this month, Owens Corming was up by 9.7% versus the MSCI World. Candriam’s ESG rating is 3.
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Key Stock Contributors and Detractors
During the quarter, at a stock level, the Fund derived positive performance from Tesla, Arista Networks and from MercadoLibre.
Tesla is an overweight position in Consumer Discretionary, due to its good score on Growth and Sentiment. Tesla operates as a multinational automotive and clean energy company. The Company designs and manufactures electric vehicles, battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services. Tesla owns its sales and service network and sells electric power train components to other automobile manufacturers. Year to date, shares gained over 70% from their lows touch in early January. The latest boost is coming from the upbeat fourth-quarter results and production outlook, as well as the news that the company has secured a $5 billion revolving credit facility with banks. During this quarter, Tesla was up by 60% versus the MSCI World. Candriam’s ESG rating is 3.
Arista Networks is an overweight position in Information Technology due to its good score on Growth and Quality. Arista Networks provides cloud networking solutions for data centres and computer environments. The Company offers ethernet switches, pass-through cards, transceivers, and enhanced operating systems. Arista Networks also provides host adapter solutions and networking services. In Q1, shares gained 30% versus the MSCI World, gaining from the revamp in the cloud profitable tech. Candriam’s ESG rating is 5.
MercadoLibre is an overweight position in Consumer Discretionary due to its good score on Volatility and Value. MercadoLibre operates an online trading site for the Latin American markets. The Company’s website allows businesses and individuals to list items, conduct sales, and purchases online in either a fixed-price and auction format. MercadoLibre offers classified advertisements for motor vehicles, vessels, aircraft, and real estate, as well as online payment services. During this quarter, MercadoLibre was up by 48% versus the MSCI World. Candriam’s ESG rating is 5.
Three stocks that contributed negatively to excess return during the period included Comerica, Centene Corporation and UnitedHealth Group Incorporated.
Comerica is an overweight position in Financials due to its good score on Sentiment and Growth. Comerica is the holding company for business, individual, and investment banks with operations in the United States, Canada, and Mexico. The Company subsidiaries provides services such as corporate banking, international finance, treasury management, community and private banking, small business and individual lending, investment services, and institutional trust. Shares went down 35% this quarter. In January, shares soared first after 4Q profit and net interest income that beat expectations. However, investors rushed to reduce exposure to the banking industry after seeing equity stakes wiped out at Silicon Valley Bank and Signature Bank. During this quarter, Comerica was down almost 42% versus the MSCI World. Candriam’s ESG rating is 4.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2303-Ausbil-CSGEF-Product-report__AAP0001AU.pdfFebruary, 2023
Key Stock Contributors and Detractors
During the month, at a stock level, the Fund derived positive performance from Lantheus Holdings, W.W. Grainger and from Tesla.
Lantheus Holdings is an overweight position in Health Care due to a good score on Growth. Lantheus Holdings develops, manufactures, sells and distributes diagnostic medical imaging agents and products. The Company offers imaging agents and products that assist clinicians in the diagnosis of cardiovascular and other diseases. The stock jumped 26% in February after the diagnostics company forecast adjusted earnings per share for the first quarter and for the year that beat the average analyst estimate. During the month, Lantheus Holdings was up by 31% versus the MSCI World. Candriam’s ESG rating is 3.
W.W. Grainger is an overweight position in Industrial due to good scores on Quality and Volatility. W.W. Grainger distributes maintenance, repair, and operating supplies and related information to the commercial, industrial, contractor and institutional markets in North America. The stock price in February rose by 12% to touch a record high after the industrial distributor’s full-year profit, revenue and margin forecasts all topped expectations. During the month, W.W Grainger was up by 16.1% versus the MSCI World. Candriam’s ESG rating is 4.
Tesla is an overweight position in Consumer Discretionary due to good scores on Quality and Sentiment. Tesla operates as a multinational automotive and clean energy company. The Company designs and manufactures electric vehicles, battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services. In February, the share price increased by 13%. The latest boost is coming from the upbeat fourth-quarter results and production outlook, the news that the company has secured a $5 billion revolving credit facility with banks, the potential volume impact by the sale price decrease for Model 3, as well as the opening of new facilities to ramp-up production. During the month, Tesla was up by 21.1% versus the MSCI World. Candriam’s ESG rating is 3.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2302-Ausbil-CSGEF-Product-report.pdfJanuary, 2023
Stock markets had a strong start to the year. Developed market equities rose 6% while emerging market stocks performed even better, up 9%. The relatively mild winter has defused the energy crisis in Europe and reduced the risk of a deep winter recession. At the end of January, gas storage in the European Union (EU) was around three-quarters full, compared to only around 35% at the same time last year. The average purchase price for natural gas in January was also about 55% lower than the average price in the second half of 2022. The surprisingly quick end to the zero-Covid policy in China has raised expectations that the Chinese economy will experience a strong recovery in the first half of 2023, which should benefit both China and its trading partners in the region. In line with the experiences of Europe and the US, there is a considerable amount of excess savings and pent-up consumer demand in China due to the numerous lockdowns of the past years. December 2022 inflation readings in the US and eurozone showed slowing inflation, which strengthened market hopes that central banks can end their hiking cycles soon.
Key Stock Contributors and Detractors
During the month, at a stock level, the Fund derived positive performance from Mercado Libre, Tesla and from United Rental.
Mercado Libre is an overweight position in Consumer Discretionary due to a good score on Value. Mercado Libre is an online trading site for the Latin American markets. The Company’s website allows businesses and individuals to list items, conduct sales, and purchases online in either a fixed-price and auction format. In January, the stock jumped by nearly 40% on the back of lower interest rates hikes and a strong economic outlook. The December labour market report showed stronger than expected job gains and a fall in the unemployment rate to 3.5%, matching its 53-year low. Also, inflation was dragged lower by falling energy and vehicle prices, lower health insurance rates and lower airline fares. During this month, Mercado Libre was up by 32.5% versus the MSCI World. Candriam’s ESG rating is 5.
Tesla is an overweight position in Consumer Discretionary due to a good score on Growth and Sentiment. Tesla operates as a multinational automotive and clean energy company. Tesla’s shares jumped by 60% in January. The latest boost is coming from the upbeat fourth-quarter results and production outlook, as well as the news that the company has secured a $5 billion revolving credit facility with banks. Also, Tesla has cut pricing, and this should lead to taking market share over other OEMs, notably in Europe. During this month, Tesla was up by 33.5% versus the MSCI World. Candriam’s ESG rating is 3.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2301-Ausbil-CSGEF-Product-report.pdfDecember, 2022
Key Stock Contributors and Detractors
During the quarter, at a stock level, the Fund derived positive performance from Amazon.com, Arch Capital Group and from Interpublic Group of Companies.
Amazon.com is an underweight position in Consumer Discretionary. The company is an online retailer that offers a wide range of products. Amazon’s products include books, music, computers, electronics, and numerous other products. In Q4 2022, shares came down by 25% after the e-commerce and cloud computing company spooked investors by forecasting its slowest ever holiday-quarter growth. The stock was down around 35% in Q4 versus the MSCI World. Candriam’s ESG rating is not in the SRI Universe.
Arch Capital Group is an overweight position in Financials due to its good scores on Sentiment, Volatility and Growth. Arch Capital Group provides financial services. The company offers life, health, property insurance and reinsurance products, as well as mortgage insurance. In Q4, shares gained 28% versus the MSCI World after beating EPS estimates and joining the S&P 500. Candriam’s ESG rating is 4.
Interpublic Group of Companies is an overweight position in Communication Services due to its good scores on Sentiment and Volatility. The Interpublic Group of Companies is an organisation of advertising agencies and marketing service companies. In Q4, the group gained 30% after notably posting better-than-expected organic revenue growth in the third quarter, shares gained 22.1% versus the MSCI World. Candriam’s ESG rating is 4.
Three stocks that contributed negatively to excess return during the period included Tesla, Invitation Homes, and CrowdStrike.
Tesla is an overweight position in Consumer Discretionary due to its good scores on Growth and Sentiment, Tesla Inc. operates as a multinational automotive and clean energy company. Shares collapsed by 50% in Q4 because the electric-vehicle maker’s third-quarter deliveries missed expectations as it struggles to get cars to customers. Moreover, Tesla reported lower-than-expected revenue. During 4Q 2022, Tesla was down almost 63% versus the MSCI World. Candriam’s ESG rating is 3.
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Equity markets continued their recovery from October’s lows, with developed market equities gaining 7% and emerging market equities rallying by nearly 15%. The bond market also registered a strong month with yields in the
US and Europe retreating significantly, leading to a 4.7% rally for the Global
Aggregate Bond index. At the beginning of November, ongoing concerns about inflation and further central bank tightening were at the forefront of investors’ minds. The Federal Reserve (Fed) and the Bank of England (BoE) raised policy rates by 75 basis points (bps) to 4.0% and 3.0% respectively.
The 7.7% year-on-year (y/y) inflation rate increase was below consensus expectations. Europe continues to feel the effects of the energy crisis and the delayed price pass-through to end customers.
Key Stock Contributors and Detractors
During the month, at a stock level, the Fund derived positive performance from Amazon.com, L’Oréal and from Eni.
Amazon.com is an underweight position in Consumer Discretionary.
Amazon.com is an online retailer that offers a wide range of products. Amazon offers personalised shopping services, Web-based credit card payment, and direct shipping to customers. Amazon also operates a cloud platform offering services globally. Recent weakness was sparked by Amazon’s results last quarter when it projected the slowest holiday quarter growth in the company’s history. During this month share price dropped by nearly 12.8% versus the
MSCI World. Candriam’s ESG rating is not in the SRI BIC Universe.
L’Oréal is an overweight position in Consumer Staples due to good scores on Quality, Sentiment and Growth. L’Oréal manufactures cosmetics. Early
November, beauty companies Coty and L’Oreal declined after peer Estee
Lauder’s second-quarter and full-year forecasts trailed consensus estimates, sinking the stock as much as 13% in premarket trading. But after that, luxury stocks surged as key market China was said to be preparing a plan to end a system that penalises airlines for bringing virus cases into the country. During this, L’Oréal was up by 9.4% versus the MSCI World. Candriam’s ESG rating is 4.
October, 2022
After a bumpy start, stock markets ended October on a more positive footing. Developed market equities registered a healthy 7% return, although emerging market equities fell 3%, with Chinese indices coming under pressure. The European Central Bank (ECB) announced another jumbo rate hike of 75 basis points (bps) on 27 October and the Federal Reserve (Fed) is expected to follow suit at its meeting in early November. Government bond yields made new cycle peaks with 10-year yields reaching 4.2% and 2.4% in the US and Germany respectively before falling back slightly by the end of the month. A challenging economic outlook and geopolitical risks both continued to push the US dollar higher. The energy crisis remains the key risk to European growth, yet October did at least provide encouraging signs that a harsh recession may yet be avoided. In the short term, stagflationary pressures are creating a difficult environment, but high dividend paying stocks may offer an area of resilience. The MSCI World index was 7.2% higher. European equity markets dropped the most, with MSCI Europe ex UK up 7.2%, while in the US, the S&P 500 was up 8.1%.
Key Stock Contributors and Detractors
During the month, at a stock level, the Fund derived positive performance from Amazon.com, Meta Platforms and from Eni.
September, 2022
After a strong rally in equity and bond markets in July, both sold off sharply again in August and September. Overall, developed market equities fell 6% over the quarter while global bonds fell 7%. The rally in July was helped by markets starting to price in interest rate cuts from the Federal Reserve (Fed) in 2023, stoking hopes of a soft landing for the economy. However, in August, the Fed and other central banks reiterated at their Jackson Hole summit that their priority remains the fight against inflation rather than supporting growth. This was the primary driver of the sharp rise in bond yields and the sell-off in stocks in the second half of the quarter. Central banks backed up their tough talk with policy rate hikes totalling 1.5% from the Fed, 1.25% from the European Central Bank and 1% from the Bank of England. Markets also moved to price in a much more aggressive path for future rate hikes, with rates now expected to rise to 4.5%, 3.5% and 5.75% by next year in the US, Europe and UK respectively. On the economic growth front, the data published over the third quarter continued to point to a global growth slowdown.
Key Stock Contributors and Detractors
During the September quarter, at a stock level, the Fund derived positive performance from MercadoLibre, IGO Limited and from Walt Disney Company.
MercadoLibre is an overweight position in Consumer Discretionary due to its good score on Volatility. MercadoLibre operates an online trading site for the Latin American markets. The Company’s website allows businesses and individuals to list items, conduct sales, and purchases online in either a fixedprice or auction format. The stock was up 36% in Q3 versus the MSCI World. Candriam’s ESG rating is 5.
IGO Limited is an overweight position in Materials due to its good score on Value and Sentiment. IGO Limited is an ASX-listed exploration and mining company with a strategic focus on assets of scale and longevity. The company focuses on aligning the business to the structural shift to energy storage. In Q3, shares gained +35% versus the MSCI World benefiting from base metal commodity prices. Candriam’s ESG rating is 4.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2209-Ausbil-CSGEF-Product-report_AAP0001AU.pdfAugust, 2022
While the summer brought historical droughts and heatwaves to many parts of the world, the global economy nevertheless continued to cool down. Most of the economic data published last month, such as the global composite Purchasing Managers’ Index (PMI), which dropped to a 22-month low of 50.8 in July, continued to illustrate the slowing of the global economy. All in all, the level of uncertainty about the outlook for the global economy remains elevated. This uncertainty is especially elevated in Europe, where after six months of war in Ukraine there is no sign of a ceasefire, and where a recession seems increasingly likely this winter as the region’s energy crisis continues to intensify. Against this uncertain global economic backdrop, global equity markets came under downward pressure in August, having rebounded strongly in July. The MSCI World index was 4.1% lower. European equity markets dropped the most, with MSCI Europe ex-UK down 4.7%, while in the US, the S&P 500 was down 4.1%.
Key Stock Contributors and Detractors
During the month, at a stock level, the Fund derived positive performance from Mitsubishi Corporation, Palo Alto Networks and MercadoLibre.
Mitsubishi Corporation is an overweight position due to its good score on Value and Sentiment. The Company has business groups such as new business initiatives, IT and electronics, fuels, metals, machinery, chemicals, living essentials, and professional services. Through a joint venture, Mitsubishi also operates satellite communications. In August, shares gained 15.2% versus the MSCI World index on the back of the spike in energy prices. Candriam’s ESG rating is 5.
Palo Alto Networks is an overweight position in Information Technology due to its good score on Growth and Sentiment. The Company offers firewalls that identify and control applications, scan content to stop threats, prevent data leakage, support integrated application, with user and content visibility. Palo Alto Networks serves customers worldwide. Palo Alto’s shares gained 15.7% versus the MSCI World index this month after the company reported fiscal fourth quarter results that beat expectations and gave a full-year forecast that is ahead of consensus. Analysts are positive on the report, singling out billings as a highlight. Candriam’s ESG rating is 5.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2208-Ausbil-CSGEF-Product-report_AAP0001AU.pdfJuly, 2022
July released economic data provided further evidence of a slowing global economy. Against this weaker growth backdrop, markets increasingly priced-in interest rate cuts from the Federal Reserve (Fed) in 2023. This anticipation of a policy pivot supported risk assets over the month. Global growth stocks benefited most, delivering a +11.5% total return in July. The S&P 500 was the best performing equity index, delivering a +9.2% total return. In emerging markets, strong performance from Indian and South Korean markets was counteracted by Chinese real estate weakness. High inflation pushed the European Central Bank (ECB) to deliver its first interest rate hike in over a decade, taking the eurozone out of negative rates.
July saw the global economy start to feel both the full impact of high inflation, with consequent action by central banks to address rising prices. US indices overall closed the month higher (SPX: +8.08%, INDU: +5.75%, CCMP: +11.38% and RTY: +9.17%). European equities closed up the month higher to (SXXP: +7.77%, SX5E: +7.67%, DAX: +5.24% and CAC: +8.83%). The NXY Index closed up the month at +5.34% and the MSCI China index returned a -9.3% total return over July as concerns about the property market impacted the real estate sector, which itself generated -19.9% in total return losses for the month.
June, 2022
During the second quarter, at a stock level, the Fund derived positive performance from Novo Nordisk, Vertex Pharmaceuticals Inc and from our underweight position in Amazon.com Inc. Novo Nordisk A/S Class B is an overweight position in Health Care due to its good score on Quality and Growth. The Company develops, produces, and markets pharmaceutical products. It focuses on diabetes care and offers insulin delivery systems and other diabetes products. Novo Nordisk was up 15.50% in Q2 versus the MSCI World in the period. Novo shares gained 7% in a day after the Danish pharmaceutical giant reported its latest earnings. The company also hiked its outlook and now sees operating profit growing at 9-13%, compared to 4-8% previously. Candriam’s ESG rating is 2. Vertex Pharmaceuticals is an overweight position in Health Care due to its good score on Value and Sentiment. The Company discovers, develops, and commercialises pharmaceutical products. The Company develops drugs for the treatment of cystic fibrosis, cancer, inflammatory bowel, autoimmune disease, and neurological disorders. Vertex’s stock increased by more than 24% in the second quarter in relative terms, beneficiary of an increase in the shares of biotech firms as investors rotated back into growth stocks and amid a report that Merck & Co is eyeing a possible purchase of Seagen. Candriam’s ESG rating is 4.
Amazon.com Inc, is an underweight position in Consumer Discretionary. Amazon offers personalised shopping services, web-based credit card payment, and direct shipping to customers. Amazon also operates a cloud platform offering services globally. During 2Q22, Meta underperformed and was down by 18.8% versus the MSCI World in the period, and Amazon lost 35% in its share price. Shares first slumped after the e-commerce company gave an outlook that was seen as disappointing and reported a rise in operating costs after its hiring and warehou
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2206-Ausbil-CSGEF-Product-report_AAP0001AU.pdfMay, 2022
May was yet another rollercoaster month for global markets. The first three weeks of the month were accompanied by strong day-by-day, and intraday, volatility which saw the S&P500 enter technical bear market territory with a 20% drawdown from the early January peaks due to continued Fed hawkishness fears, a worsening COVID situation in China and high profile corporate earnings misses from US consumer & tech companies.
After a painful April, investors gained some respite with the MSCI All Country World rising by 0.2% in May. This was complimented by positive global bond returns of 0.3%. Value stocks were the best performing asset class returning 2.2% over the month.
May failed to provide the catalyst that markets are waiting for. Central banks are continuing to grapple with inflation. But they are now even more conscious of rising growth risks, which remain higher in Europe than the US.
During the month, at a stock level, the Fund derived positive performance from TotalEnergies SE, Electronic Arts Inc and Ryder System, Inc. TotalEnergies SE is an overweight position in Energy due to its good score on Value and Sentiment. The Company produces, transports, and supplies crude oil, natural gas, and low carbon electricity, as well as refines petrochemical products. TotalEnergies owns and manages gasoline filling stations worldwide. In May, TotalEnergies shares went up by 16.6% versus the MSCI World in the period. Oil and gas stocks rose in Europe, bucking a decline in the broader market, as crude oil prices climbed, and even more after a report that showed a decline in US gasoline stockpiles. Candriam’s ESG rating is In Line.
Electronic Arts is an overweight position in Communication Services due to its good score on Sentiment and Volatility. Electronic Arts develops, publishes, and distributes branded interactive entertainment software worldwide for video game consoles, personal computers, handheld game players, and cellular handsets. The shares this month was up 17.3% in relative terms after the video-game company reported its fourth-quarter results and gave an outlook. Candriam’s ESG rating is In Line.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2205-Ausbil-CSGEF-Product-report_AAP0001AU.pdfApril, 2022
The first quarter of the year was difficult for investors and April proved no different. The war in Ukraine, lockdowns in China and the prospect of substantially tighter US monetary policy all weighed on sentiment. Global equities continued their recent decline, with MSCI All Country World falling by -8.0% over the month of April. The commodity-heavy FTSE AllShare was a relative bright spot, returning 0.3% in April. Conversely, growth stocks saw substantial losses of -11.9%. The global economy entered 2022 with strong tailwinds. While robust labour markets and large amounts of pent-up savings remain supportive, risks to the recovery are building, most notably in Europe. Central bankers face substantial challenges as they look to tighten policy to help bring inflation back down to target without tipping the economy into recession.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2204-Ausbil-CSGEF-Product-report_AAP0001AU.pdfFebruary, 2022
During the month, at a stock level, the Fund derived positive performance from Nucor Corporation, AstraZeneca PLC and Fortinet.
Nucor Corporation is an overweight position in Materials due to its good score on Value and Sentiment. The company produces carbon and alloy steel, steel joints, cold finished steel, steel grinding balls, steel bearing products, and metal building systems. The stock performance this month was impacted by commodity price inflation, and it was up +32.3% versus the MSCI World in the period. Candriam’s ESG rating is Leading. AstraZeneca is an overweight position in Health Care due to its good score on Value. The Company focuses its operations on eight therapeutic areas, including gastrointestinal, oncology, cardiovascular, respiratory, central nervous system, pain control, anaesthesia, and infection. The stock is perceived as one of the best growth story in Europe at the moment, up 9.0% in February in relative terms. The Company posted 4Q earnings which beat analyst expectations on core EPS and product sales. Candriam’s ESG rating is Leading.
Fortinet is an overweight position in Information Technology due to its good score on Quality and Sentiment. The Company offers network security appliances, software, and subscription services. Fortinet systems integrate the industry’s broadest suite of security technologies, including firewall, VPN, antivirus, intrusion prevention (IPS), web filtering, antispam, and traffic shaping. The stock performance was up +18.4% versus the MSCI World in the period. Cybersecurity stocks outperformed, helping software outperform technology this month. Candriam’s ESG rating is In Line.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2202Ausbil-CSGEF-Product-report_AAP0001AU.pdfJanuary, 2022
Key Stock Contributors and Detractors
During month, at a stock level, the Fund derived positive performance from Vodafone Group Plc, American Express Company and Aflac Incorporated. Vodafone Group is an overweight position in Communication Services due to its good score on Value. The Company provides wireless communication services and offers mobile telecommunications services including voice and data communications.
The stock performance this month was up +22.55% versus the MSCI World in the period. Tech stocks slumped amid worries over higher bond yields hitting shares in more richly-valued stocks, with the STOXX Tech Index hitting a three-month low early January. Brokers note also supported the stock, saying that Vodafone’s push for consolidation in the mobile markets in Italy and the UK are a “material positive” for the sector. At end of January, Vodafone Group Plc shares jumped as much as 4.5% after activist fund Cevian Capital AB built a stake and pushed for changes at the UK telecoms group. Candriam’s ESG rating is Leading. American Express is an overweight position in Financials due to its good score on Sentiment and Growth. American Express is a global payment and travel company. The stock went up nearly by +15.45% in January in relative terms. On the day of results, American Express climbed as much as +7.6%, the most since November 2020, after reporting revenue for the fourth quarter that beat the average analyst estimate. Revenue was US$12.15 billion, +30% y/y, compared to the consensus estimate of $US11.50 billion. Candriam’s ESG rating is IN SRI-Express.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2201-Ausbil-CSGEF-Product-report_AAP0001AU.pdfDecember, 2021
During the quarter, at a stock level, the Fund derived positive performance from Qualcomm, Seagate Technology and Meta Platforms.
Qualcomm is an overweight position in Information Technology due to its good scores on Growth and Value. The Company develops and delivers digital wireless communications products and services based on CDMA digital technology. The share price had a significant run in 4Q, up by 34.5% versus the MSCI World in the period. Share performance was sustained by rosy forecasts. The company indicated potential to top $46bn by fiscal year 2024, against analyst projections of an average of $43.8bn. Candriam’s ESG rating is In Line.
Seagate Technology is an overweight position in Information Technology due to its good scores on Value and Sentiment. Seagate Technology offers computer hardware products. Seagate closed 2021 with a strong 4th quarter, increasing by 29.9% in relative terms, with strong 3Q results. Revenue came in at $3.12 billion, +35% y/y, and above the consensus estimate of $3.11 billion (range $3.07 billion to $3.17 billion), driving a positive market reaction. Candriam’s ESG rating is IN SRI Express. Meta Platforms is an underweight position in Communication Services. Facebook (FB), Inc. operates a social networking website, developing technologies that facilitate the sharing of information, photographs, web links and videos. In 4Q21, FB shares were down by 8.8% versus the MSCI World, negatively impacted by 3Q reporting. The stock dropped after the social-media giant’s third-quarter revenue and fourth-quarter forecast fell short of Wall Street’s expectations due to headwinds from Apple’s curbs on consumer data collection. Candriam’s ESG rating is not in the SRI BIC Universe.
Three stocks that contributed negatively to excess return during the period included Paypal, DocuSign and our non-holding position in Pfizer.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2112-Ausbil-CSGEF-Product-report_AAP0001AU.pdfNovember, 2021
After a weak start, stocks regained momentum throughout October with many equity indices making new highs during the course of the month. US stocks were supported by a strong start to the Q3 earnings season, with more than 80% of companies beating earnings expectations, which helped to drive the S&P 500 to a new peak. Chinese indices also rebounded, in part thanks to progress in the beleaguered property sector. From a growth perspective, the recovery remains solid. Flash purchasing managers’ indices (PMIs) improved in the majority of developed countries and progress in vaccination campaigns is broadly limiting risks of new mobility restrictions, although China and Russia are two notable exceptions.
Key Stock Contributors and Detractors
During the month, at a stock level, the Fund derived positive performance from CNP Assurances, Microsoft Corporation and from our non-holding position in Meta Platforms.
CNP Assurances is an overweight position in the Financials sector due to its good score on Value. CNP Assurances offers group and individual life, health, accident, disability and credit insurance, and pensions. The stock jumped +52% in October in relative terms, after La Banque Postale said it plans to buy the rest of the company. Paris-based bank agreed to buy the 16% stake of French banking group BPCE in the insurer for EU21.90 a share, will make a takeover offer for remaining 21% free float at the same price. Candriam’s ESG rating is In Line.
Microsoft Corporation is an overweight position in the Information Technology sector due to its good score on Quality and Value. Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. Microsoft shares jumped nearly +12% in October versus the MSCI World, after the software company reported first-quarter results that analysts qualified as very strong across the board. Several firms raised their price targets, and brokers called the sales growth runrate “incredible.” Candriam’s ESG rating is IN-SRI Express.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2110-Ausbil-CSGEF-Product-report_AAP0001AU.pdfOctober, 2021
Key Stock Contributors and Detractors
During the month, at a stock level, the Fund derived positive performance from CNP Assurances, Microsoft Corporation and from our non-holding position in Meta Platforms.
CNP Assurances is an overweight position in the Financials sector due to its good score on Value. CNP Assurances offers group and individual life, health, accident, disability and credit insurance, and pensions. The stock jumped +52% in October in relative terms, after La Banque Postale said it plans to buy the rest of the company. Paris-based bank agreed to buy the 16% stake of French banking group BPCE in the insurer for EU21.90 a share, will make a takeover offer for remaining 21% free float at the same price. Candriam’s ESG rating is In Line.
Microsoft Corporation is an overweight position in the Information Technology sector due to its good score on Quality and Value. Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. Microsoft shares jumped nearly +12% in October versus the MSCI World, after the software company reported first-quarter results that analysts qualified as very strong across the board. Several firms raised their price targets, and brokers called the sales growth runrate “incredible.” Candriam’s ESG rating is IN-SRI Express
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During 3rd quarter, at a stock level, the Fund derived positive performance from Alphabet, West Pharmaceutical Services and Accenture. Alphabet is an overweight position in Communication Services due to its good score on Earnings Revision and Price Momentum. Alphabet is the holding company of Google. In Q3, the stock was up 9.4% in relative terms. The quarter started well with very good results and a bullish forecast. That said, the quarter closed with a big fall in share price performance. Indeed, Wall Street’s biggest technology companies were down in fear of rising bond yields prompting investors to rotate out of pricey growth stocks. Candriam’s ESG rating is IN-SRI Express.
West Pharmaceutical Services is an overweight position in Health Care due to its good score on Earnings Revision and Growth. The company’s proprietary drug and biologic packaging products include seals and stoppers for injectable medicine, syringe components, and injection systems. In Q3, the stock jumped nearly 18.2% versus the MSCI World. Back at the end of July, West Pharma boosted its adjusted earnings per share forecast for the full year; the guidance beat the average analyst estimate. But in September, the sector started suffering. Health-care stocks were the worst-performing sector within the S&P 500 in early September. Candriam’s ESG rating is In Line.
Accenture is an overweight position in Information Technology due to its good score on Earnings Sentiment and Quality. Accenture is one of the world’s largest consulting firms, and offers a portfolio of management consulting, strategy, digital, technology, interactive, and business operations services to some of the top companies and government organisations in the world. In Q3, the stock is up 8.7% in relative terms. In June, Accenture boosted its earnings per share forecast for the full year; the guidance beat the average analyst estimate. Candriam’s ESG rating is Leading.
Three stocks that contributed negatively to excess return during the period included Logitech International, Akzo Nobel and Moderna
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2109-Ausbil-CSGEF-Product-report.pdfAugust, 2021
In the US, hospitalisations have increased more sharply, raising some concerns that the link between infections and hospitalisations has not been as effectively broken there due to lower vaccination take-up. Global equities delivered total returns of +2.5% in August. Growth stocks benefitted from continued low US yields to post total returns of +3.3%, helping the S&P 500 to deliver returns of +3.0% over August During the month, at a stock level, the Fund derived positive performance from Agilent Technologies, Adyen and Alphabet
- Agilent Technologies is an overweight position in Health Care due to its good score on Earnings Reliability. The Company offers electronic and bio-analytical measurement, semiconductor, and board testing. In August, the stock went up nearly 12% in relative terms, notably benefiting from their strong results and outlook
- Adyen is an overweight position in Information Technology due to its good score on Growth Potential and Valuation. The Company offers a platform that enable merchants and businesses to process payments online, via mobile, and point-of-sale systems with payment methods including card schemes, mobile wallets, and other local methods. In August, the stock jumped 16.9% versus the MSCI World.
-Alphabet is an overweight position in Communication Services due to its good score on Analyst Sentiment. The Company provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products. In August, the stock jumped 4.9% in relative terms. This followed their results end of July where we noted another strong quarter across the board.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2108-Ausbil-CSGEF-Product-report.pdfJuly, 2021
During month, at a stock level, the Fund derived positive performance from Amazon, Alphabet and Wolters Kluwer. Amazon is an underweight position in Consumer Discretionary. Amazon.com is an online retailer that offers a wide range of products. On the last day of the month, Amazon shares fell over -5, in relative terms, due to a lower earnings forecast than expected, and missing on analysts’ revenue expectations. The company also disclosed that the Luxembourg regulator has issued a fine of about US$887 million for breaking European Union data privacy rules. Candriam’s ESG rating is not in the SRI BIC Universe.
Alphabet is an overweight position in Communication Services due to its good scores on Growth Potential and Operating Efficiency. Alphabet is the holding company of Google, Android and YouTube. In the month of July, the stock went up by 8.5 versus the MSCI World with 2Q revenue 10 above consensus, driven by favourable COVID comps, elevated consumer activity online, broad-based strength in ad spend, and strong execution. Candriam’s ESG rating is IN-SRI Express. Wolters Kluwer is an overweight position in Consumer Discretionary due to its good scores on Quality, Valuation and Analyst Sentiment. Wolters Kluwer operates as a global information services and solutions provider. The stock reached new record-high levels in July after increasing by more than 11 in relative terms since the beginning of the month. WK has been a prime beneficiary of the re-rating of quality over the past year and has benefited from academic publishing concerns. It offers a relative ‘safe haven’ in the face of COVID-19 uncertainty. Candriam’s ESG rating is Advanced.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2107-Ausbil-CSGEF-Product-report.pdfJune, 2021
During the quarter, at a stock level, the Fund derived positive performance from Biogen, Nippon Yusen and BlackBerry.
Biogen is an overweight position in Health Care due to its good scores on Earnings Reliability, Profitability and Valuation. Biogen address diseases such as multiple sclerosis, non-Hodgkin’s lymphoma, rheumatoid arthritis, Crohn’s disease, and psoriasis. The stock went up +15.9% in Q2 in relative terms. Biogen’s controversial Alzheimer’s disease therapy was approved by US regulators, a landmark decision that stands to dramatically change treatment for the debilitating brain condition. Candriam’s ESG rating is Leading.
Nippon Yusen is an overweight position in Industrials due to its good scores on Valuation and Analyst Sentiment. Nippon Yusen mainly provides marine transportation services and transportation management solutions from international hub ports to both domestic and international ports. The stock went up +40% in Q2 versus the MSCI World index. The company boosted its net income forecast for the full year, with guidance beating the average analyst estimate. Candriam’s ESG rating is In Line. Blackberry is an overweight position in Information Technology due to good scores on Growth Potential and Market Sentiment. The company provides platforms and solutions for access to email, phone, SMS messaging, Internet, and Intranet-based applications.
The stock went up +37% in Q2 in relative terms, as the software company joined a broader ‘meme stock’ rally with significant increase in trading volume driven by Reddit users. Candriam’s ESG rating is Advanced. Three stocks that contributed negatively to excess return during the period included Obayashi, Tesla and Clorox.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2106-Ausbil-CSGEF-Product-report.pdfMay, 2021
Economic data has been very strong over the last month but markets have been more muted after an already strong start to the year. The ongoing vaccine rollout is allowing many economies to gradually reopen, which in combination with sizeable fiscal support – particularly in the UK and US – is supporting a big bounce in economic activity. Nevertheless, markets were constrained in May by concerns that upside data surprises may result in more persistent inflation, which could force central banks to bring about a premature end to the growth rebound. Developed market equities managed to gain 1.5% for the month.
Masco is an overweight position in Industrials despite a good score on Capital Spending Discipline. Masco Corporation manufactures and sells home improvement and building products. The stock went down nearly 7% in May in relative terms. Raw materials are key input costs for the building products sector and base metals increased strongly year-onyear. Specifically, copper, nickel, aluminum and zinc rose 12%, 10%, 10% and 4%, respectively. Candriam’s ESG rating is Leading.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2105-Ausbil-CSGEF-Product-report.pdfMarch, 2021
During the quarter, at a stock level, the Fund derived positive performance from CBRE, Intel and Alphabet.
CBRE is an overweight position in Real Estate due to its good scores on Capital Spending Discipline and Valuation. The company offers property management, valuation, real estate investment and advisory services. Since January, the stock is up over 21% versus the MSCI World Index. In February, CBRE ranked #1 real estate company on Fortune’s most admired list for a third consecutive year. Candriam’s ESG rating is ‘In Line’.
Intel is an overweight position in Information Technology due to its good score on Valuation. Intel Corporation designs, manufactures, and sells computer components and related products. The shares went up by nearly 25% in Q1 in relative terms. Intel shares tumbled after the incoming chief executive officer pledged to regain the company’s lead in chip manufacturing, countering growing calls from some investors to shed that part of its business. By the end of March, Intel shares rose to touch the highest in more than a year after the chipmaker unveiled a plan to spend billions on reviving manufacturing. Candriam’s ESG rating is ‘Leading.’
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2103-Ausbil-CSGEF-Product-report.pdfFebruary, 2021
During month, at a stock level, the Fund derived positive performance from CBRE, Alphabet and Starbucks.
CBRE is an overweight position in Real Estate due to its good scores on Capital Spending Discipline and Valuation. The Company offers property management, valuation, real estate investment, and advisory services. The stock was up +21.7% in February in relative terms. This month, the company was appointed to sell one of London’s biggest building sites but also acquired Calabasas Construction Management, which holds the LA Clippers training complex. Candriam’s ESG rating is in Line. Alphabet is an overweight position in Communication Services due to its good scores on Growth Potential and Operating Efficiency. The Company, through its subsidiaries, provides web-based search, advertisements, maps, software applications, mobile operating systems, etc. The stock outperformed its benchmark by +8% in February. The Q4’20 earnings release hit the tape with an overall beat. Candriam’s ESG rating is Runner Up.
Starbucks is an overweight position in Consumer Discretionary due to its good scores on Profitability and Valuation. Starbucks Corporation retails, roasts, and provides its own brand of specialty coffee. Starbucks shares were up +9.5% in relative terms, benefiting from the re-opening trade. In February, Starbucks was the second-best performer in the S&P Supercomposite Restaurants Index. Candriam’s ESG rating is Leading. Three stocks that contributed negatively to excess return during the period included Tesla, Clorox and Blackberry.
Tesla
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/2102-Ausbil-CSGEF-Product-report.pdfticker: AAP0001AU
commentary_block: Array
factsheet_url:
Monthly Performance Report: https://www.ausbil.com.au/products/global-equities/candriam-sustainable-global-equity-fund
release_schedule: Monthly
fund_features:
The Candriam Sustainable Global Equity Fund is a global core international equity fund. The fund invests in companies that rank best of sector with regard to their social, environmental, employment and ethical economic policies are considered.
- Invests in a portfolio of listed global equities which are selected from the MSCI World Index as its benchmark.
- Well-diversified portfolio of ‘best-in-class’ listed global equities for the Fund.
- Best suit for at least five year investment time horizon.
manager_contact_details: Array
asset_class: Foreign Equity
asset_category: Large Blend - Responsible Investment
peer_benchmark: Foreign Equity - Large Responsible Index
broad_market_index: Developed -World Index
structure: Managed Fund