September, 2023
The Hyperion Australian Growth Companies Fund returned -7.9% for September, underperforming its benchmark (S&P/ASX 300 Accumulation Index) by 5.0%. Nanosonics Limited, HUB24 Limited, and Technology One Limited saw the largest positive share price movements, while Block Inc., IDP Education Ltd., and James Hardie Industries PLC saw the largest share price declines.
The domestic strategy produced mixed returns over the September quarter. The quarter started strongly following an encouraging full year financial reporting season in July and August. However, macroeconomic uncertainty centred around further interest rate rises in the U.S. dampened returns into September. This short-term uncertainty and volatility in global bond markets, which we believe is neither fundamental nor entrenched, has been a headwind for longer duration assets such as those held in the portfolio. Short-term volatility often provides a brief opportunity for investors with a long-term mindset.
Our long-term view remains unchanged that we will revert to a lower growth, lower inflation, and lower interest rate world and in fact we are starting to see that in some parts of Asia. A lower growth environment is much more favourable for growth investing.
Although we have seen strong performance for the calendar year-to-date, we believe the long-term return outlook for our portfolio remains attractive, with forecast internal rates of return above their long-run averages.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-September-2023.pdfAugust, 2023
The Hyperion Australian Growth Companies Fund returned -4.2% for August, underperforming its benchmark (S&P/ASX 300 Accumulation Index) by 3.4%. Altium, Carsales.Com Limited, and HUB24 Limited saw the largest positive share price movements, while Iress Limited, Resmed Inc. (Resmed), and Block Inc. saw the largest share price declines.
Our domestic strategy produced mixed results in the month of August as reporting season came to a close. While many of our portfolio companies produced encouraging results in line with our long-term forecasts, there were several companies that saw share price declines as the market focused on short-term noise. WiseTech Global Ltd., which is continuing to reinvest in its business, saw share price weakness on the day it reported having rallied strongly into its result.
Economic data continues to show that the economic jolt from the pandemic is subsiding and stability in bond yields is being maintained. Stability is important as it allows confidence to come back into markets. Short-term valuations from higher bond yields look to have rebased and we are now importantly seeing our companies’ underlying fundamentals and earnings be the basis for market valuations. Hyperion still believes that we will revert to a lower growth, lower inflation, and lower interest rate world and in fact we are starting to see that in some parts of Europe and Asia. A lower growth environment is much more favourable for growth investing.
Although we have seen strong performance for the year to date, we believe the long-term return outlook for our portfolio continues to look attractive with forecast internal rates of return above their long-run averages.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-August-2023.pdfJuly, 2023
The Hyperion Australian Growth Companies Fund returned 5.5% for July, outperforming its benchmark (S&P/ASX 300 Accumulation Index) by 2.6%. Block Inc., GQG Partners, and Seek Ltd., saw the most positive share price movements, and CSL Ltd., Brambles Ltd. and Macquarie Group Ltd saw the largest share price declines.
Our domestic strategy saw ongoing strength in July. With our companies reporting their full year financial results in August, we believe the moderating macroeconomic conditions will see a more favourable environment for our investment style. We believe several positive emerging themes will continue during the year and beyond. The first is a shift in corporations focusing more on efficiencies within their businesses, particularly at the bottom line (earnings). We believe the ability for companies to run their businesses harder by being more astute with their spending and sizing their workforce appropriately can help them achieve earnings leverage; this may produce considerable upside to margins.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-July-2023-1.pdfJune, 2023
The Hyperion Australian Growth Companies Fund returned 1.5% for June, underperforming its benchmark (S&P/ASX 300 Accumulation Index) by 0.3%. Netwealth Group Ltd., Xero Limited, and Block, Inc. saw the largest positive share price movements, while CSL Limited, Seek Limited, and Cochlear Limited saw the largest share price declines.
The month of June closed off a strong financial year for the domestic strategy, and investors with long-term mindsets are being rewarded for their patience as a more stable macroeconomic environment has helped the attractive economics of our portfolio produce positive results.
Hyperion has always believed that our portfolio would recover from what we viewed as a non-fundamental drawdown period and the negative duration impact from higher bond yields continues to provide an opportunity for long-term investors to increase exposure to some of the best listed businesses in Australia at attractive prices. The domestic strategies continue to offer above average forecast 10-year returns at current prices. Our portfolios have robust fundamentals with high and sustainable returns on capital, low financial gearing and the ability to produce positive free cash flows.
Our portfolio’s ability to take market share tends to increase during economic downturns when weaker competitors are suffering. This ability to grow by taking market share enables our stocks to handle cyclical earnings downturns relatively better than most listed companies.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-June-2023.pdfMay, 2023
The Hyperion Australian Growth Companies Fund returned -0.7% for May, outperforming its benchmark (S&P/ASX 300 Accumulation Index) by 1.8%. Xero Ltd., James Hardie Industries PLC, and Wisetech Global Ltd. saw the largest positive share price movements, while IDP Education Ltd., Fisher & Paykel Healthcare, and Nanosonics Limited saw the largest share price declines.
As we look forward, there are several positive emerging themes that we believe will continue throughout the year and beyond. The first of which is a shift in corporations focusing more on efficiencies within their businesses, particularly at the bottom line (earnings). The ability to run these businesses harder and achieve earnings leverage may produce considerable upside to margins over the medium term. The second positive has been around artificial intelligence (AI) and machine learning (ML), where we are starting to see inflection points. A key structural theme that Hyperion identified approximately 10 years ago was AI and ML, however the potential upgrades to revenue streams, efficiencies in productivity and eventually earnings are only now starting to be recognised by market participants. We believe the domestic portfolios are well placed to ride this thematic over time through software platforms such as Xero and WiseTech, or online classified portals such as REA Group and Carsales.
In our most recent webinar (watch the replay here), we reminded our investors why we believe investing in high quality structural growth companies is important and discussed why we remain confident in our portfolio companies and their ability to produce excess returns. We believe the long-term return outlook for our portfolios continues to look attractive with robust fundamentals, high and sustainable returns on capital, low financial gearing and the ability to produce positive free cash flows.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-May-2023.pdfApril, 2023
The Hyperion Australian Growth Companies Fund returned 2.2% for April, outperforming its benchmark (S&P/ASX 300 Accumulation Index) by 0.3%. Xero Ltd., Nanosonics Limited, Carsales.com Limited, and Brambles Limited saw the largest positive share price movements while Block, Inc. was the only company to see its share price decline over the month.
April was another solid month for the Australian Growth Companies Fund with all bar one holding company producing positive returns during the month. The Fund appears to be benefitting from a less volatile macroeconomic environment, with inflation domestically and abroad likely to have peaked. In a stable environment, high quality businesses that can continue their growth and profitability by taking market share will become more valuable and should be in a better position to produce attractive returns over the long term.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-April-2023.pdfMarch, 2023
The Hyperion Australian Growth Companies Fund returned 1.1% for March, outperforming its benchmark (S&P/ASX 300 Accumulation Index) by 1.3%. Xero Ltd., REA Group Ltd., and Nanosonics Ltd. saw the largest positive share price performance for the month while GQG Partners, Inc., Block Inc. (Block), and Macquarie Group Ltd. saw the largest share price declines.
It has been a very encouraging start to the year for our domestic strategy which has pleasingly responded well to several factors, including a strong reporting season and a continued decline in inflation which has seen a stabilisation in 10-year US Treasury yields. While many of Hyperion’s portfolio companies have risen strongly since the start of the year, Block has underperformed recently after being the target of a short seller’s report. Overall, it is not unusual for Hyperion’s portfolio companies to face short sellers; this has occurred numerous times in the past. It is a function of our holdings being highly innovative businesses that are often difficult to assess. Our ability to deeply analyse businesses is a key driver of our long-term success. We are however humble and cognisant that ‘short’ reports can in certain instances present information that may not be known to the market and/or ourselves. Following our initial review, we believe the evidence provided by Hindenburg’s short report is largely anecdotal and subjective and in our view is sensationalised.
Furthermore, the recent volatility in the highly leveraged banking sector is a good reminder of the high barriers to entry for Hyperion’s portfolios. Our companies are structurally resilient, highly profitable and produce positive free cash flows, with most having net cash. Over time, these characteristics have proven to be highly valuable. We believe the recent developments in the banking system may result in slowing credit growth and should be a net positive for long duration and higher quality assets
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-March-2023.pdfFebruary, 2023
The Hyperion Australian Growth Companies Fund returned -1.0% for February, outperforming its benchmark (S&P/ASX 300 Accumulation Index) by 1.6%. HUB24 Ltd., Brambles Ltd. and Cochlear Ltd. saw the strongest share price performance for the month while Domino’s Pizza Enterprises Ltd., IDP Education Ltd. and Nanosonics Ltd. saw the largest share price declines.
As we progress through the year, Hyperion has been pleased with a number of our domestic companies’ half-year financial reports. Share prices have responded positively to favourable financial reports in general. However, one company that missed guidance was Domino’s who reported weaker-than-expected first-half revenue and profits. Domino’s has spent decades training their customers to be value-focused and the result was driven by the mishandling of price rises, especially in delivery, which was implemented to offset inflation but led to a stronger-thanexpected drop off in customer volume. Domino’s management sound confident that they can fix this quite quickly with their new 'Flex Vouchers' which provide customers with a low headline price and the option to pay extra for upgrades. Pleasingly, the roll out of Flex Vouchers has already begun and anecdotally has been well received by customers. In our view, this is a rare misstep from Domino’s and we believe they have the management team to execute on their long-term strategies. Domino's is well positioned globally across ANZ, Asia and Europe, and they should be able to increase their store footprint over the next decade .
As we discussed in our most recent webinar, Hyperion believes that macroeconomic factors are still relevant, but the period of higher-than-expected inflation and bond yields that had such a negative influence on our portfolio returns may have come to an end. We believe we are slowly returning to an environment of low, but positive economic growth, lower inflation, and eventually low bond yields. To that end, it is likely that we are in the process of returning to a macro environment that rewards investing in high quality structural growth stocks (read more on our view in our latest whitepaper).
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-February-2023.pdfJanuary, 2023
The Hyperion Australian Growth Companies Fund returned 10.8% for January, outperforming its benchmark (S&P/ASX 300 Accumulation Index) by 4.5%. Block Inc, Wisetech Global Ltd.
and James Hardie Industries PLC saw the largest positive share price performance for the month while HUB24 Limited and Brambles Ltd were the only holdings to see share price declines.
January saw a strong start to the year for the Hyperion Australian Growth strategy after a period of capitulation into the close of 2022. While short-term results are pleasing to see, we look forward to the upcoming half year financial reporting season to confirm our longer-term fundamental views of our portfolio companies. It is our view that the portfolio continues to trade at an attractive discount to our long-term valuations. Businesses that grow by taking market share will become more valuable and should be in a better position to produce attractive returns over the long term.
As stated previously, Hyperion believes that a cyclical recession is probable. However, we believe a recession is unlikely to impact the long-term earnings per share forecast of our portfolio’s holdings due to the strong value propositions of our portfolio companies relative to their peers, their high levels of innovation and their low penetration rates of their addressable markets.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-January-2023.pdfDecember, 2022
The Hyperion Australian Growth Companies Fund returned -5.0% for December, underperforming its benchmark (S&P/ASX 300 Accumulation Index) by 1.7%. Iress Limited was the only holding to see positive share price performance for the month while Netwealth Group Ltd., Wisetech Global Ltd., and REA Group Ltd. saw the largest share price declines.
2022 was a very challenging year for the portfolio and has been one of the more hostile equity markets we have seen in over 20 years. We believe the rapid change in long-term bond yields over the past 12 months has been the primary cause of the decline in the market value of the portfolio. The portfolio’s underlying earnings per share (EPS) growth has been unable to offset the valuation impact from lower Price to Earnings (P/E) ratios due to this rapid change. This inability of EPS growth to offset the duration impact of higher bond yields is because EPS growth is time-dependent, whereas bond yield and P/E ratio changes are not time constrained. EPS growth tends to dominate valuations over more extended periods, but significant changes in bond yields over short periods can overwhelm the impact of EPS growth.
Despite the recent decline in our portfolio, we believe the underlying fundamentals have not deteriorated, with our companies' competitive positions and long-term earnings growth profiles remaining strong. In our view, the portfolio continues to trade at an attractive discount to our long-term valuations and in a world where growth should again become scarce, we believe our companies' competitive positions and long-term earnings growth profiles should remain strong. Businesses that grow by taking market share will become more valuable and should be in a better position to produce attractive returns over the long term. Hyperion’s latest White Paper Longterm "Signal" versus Short-term "Noise" explores these factors in greater detail.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-December-2022.pdfNovember, 2022
The Hyperion Australian Growth Companies Fund returned 2.7% for November, underperforming its benchmark (S&P/ASX 300 Accumulation Index) by 3.7%. Fisher & Paykel Healthcare, Nanosonics Ltd., and Netwealth Group Ltd. saw the strongest share price performance while James Hardie Industries, Xero Ltd., and Iress Ltd. saw the largest share price declines.
Domestic markets continued their positive run through November as the impact of a softer rate rise of 25bps from the Reserve Bank of Australia was viewed more favourably by equity markets. All S&P/ASX 300 sectors produced positive returns over the month, with Utilities and Materials leading the way. On a relative basis, Hyperion was impacted by low to no exposure to materials and commodities, respectively.
For the year ahead, while Hyperion believes that a cyclical recession is probable, we believe that a recession is unlikely to impact our portfolios' long-term earnings per share forecast and valuations due to the strong value propositions of our portfolio companies relative to their peers, their high levels of innovation and their low penetration rates.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-November-2022.pdfOctober, 2022
The Hyperion Australian Growth Companies Fund returned 7.1% for the month of October, outperforming its benchmark (S&P/ASX 300 Accumulation Index) by 1.1%. Domino’s Pizza Enterprises Limited, HUB24 Limited and Nanosonics Limited saw the strongest share price performance for the month while GQG Partners Inc. and CSL Limited were the only stocks to decline.
The RBA slowed the magnitude of their rate rises from four consecutive rises of 50bps to 25bps at their October meeting. This slowing appeared to have had a positive effect on equity markets and our strategy, with all but two holdings producing positive returns for the month.
Capital markets globally continue to take their lead from the U.S. where volatility is at elevated levels. Several leading economic indicators are suggesting the global economy is heading towards a period of low economic growth, such as declining PMIs, inverted yield curves, low consumer confidence, and large inventory builds.
While we are seeing persistent short-termism from market participants, we are confident that once economic and bond yield volatility stabilises, our portfolio's strong fundamentals and sustainable competitive advantages will become a focus of capital allocators. Hyperion believes that lower growth and lower inflation still appear to be the most likely long-term scenario and in the long run, this is the best environment for our investment style. We believe our portfolio companies will produce materially higher earnings growth than the broader market over the long term due to their superior value propositions, strong pricing power and low penetration rates.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-October-2022.pdfSeptember, 2022
The Hyperion Australian Growth Companies Fund returned -9.3% for the month of September, underperforming its benchmark (S&P/ASX 300 Accumulation Index) by 3.0%. Resmed Inc. saw positive share price performance for the month while Iress Limited, Domino’s Pizza Enterprises Limited, and Block, Inc. saw the largest share price declines
Throughout the month of September, we saw continued volatility across capital markets with all industry sectors feeling the negative reverberations of the RBA’s fifth consecutive rate rise.
Hyperion believes that the global economy is transitioning from growth abundance to growth scarcity. There are several economic indicators suggesting that the global economy is heading towards a period of low economic growth, including declining PMIs, inverted yield curves and low consumer confidence. Hyperion believes that low growth and inflation still appears to be the most likely long-term scenario and in the long run, this is the best environment for our investment style.
While short-term performance has been unpredictable and it has been a difficult period for investors, Hyperion believes that we have allocated capital to businesses that will produce superior long-term results. Our domestic portfolio continues to produce strong short-term financial results which are consistent with the assumptions that underpin our long-term valuations. Broadly, we have seen strong organic sales growth, robust free cash flow generation and strong balance sheets. The long-term intrinsic value for the portfolio remains unchanged and we believe our portfolio should perform relatively well in an economic downturn.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-September-2022.pdfAugust, 2022
The Hyperion Australian Growth Companies Fund returned -1.2% for the month of August, underperforming the S&P/ASX 300 Accumulation Index by 2.4%. Altium, Wisetech Global Ltd., and GQG Partners, Inc. saw the strongest share price performance for the month. Nanosonics Limited, Domino’s Pizza Enterprises Limited, and Seek Limited saw the largest share price declines.
We believe the recent domestic reporting season provided further evidence that the fundamentals of our portfolio businesses remain robust and that structural themes are intact. Broadly, we have seen strong organic sales growth, robust free cash flow generation and strong balance sheets. The results our portfolio companies have delivered are what we consider to be strong and consistent with our long-term expectations and we are especially pleased with the growth our domestic portfolio has achieved in this difficult period.
We think the rotation from long duration, high quality, structural growth companies into lower quality, lower duration, “old world” cyclical businesses over the past nine months has been largely driven by short-term macroeconomic factors, including a sharp increase in long-term government bond yields over a very short time period and elevated shortterm nominal GDP growth. However, over the long run, it is the compounding effect of sustained earnings growth that dominates share price returns, not changes in bond yields. We believe the earnings strength of the companies within our portfolios will vastly outweigh short-term macroeconomic factors in the long run. We think the new world businesses in Hyperion’s portfolios are transforming industries and will likely be able to produce high sustained relative growth rates in the long run by expanding into large addressable markets and sustaining their innovative cultures.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-August-2022.pdfJuly, 2022
The Hyperion Australian Growth Companies Fund returned 13.1% for the month of July, outperforming its benchmark (S&P/ASX 300 Accumulation Index) by 7.2%. Nanosonics Ltd, Wisetech Global Ltd, and Xero Ltd saw the strongest share price performance during the month while Iress Ltd and GQG Partners, Inc. saw share prices decline.
As we have stated throughout the year, the selloff in high quality growth-oriented, long duration companies has undoubtedly been challenging for investors. Rather than being fundamentally driven, we believe that the sharp selloff in these companies has largely been driven by short-term macroeconomic factors, contagion, and fear.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-July-2022-1.pdfJune, 2022
The Hyperion Australian Growth Companies Fund returned -8.5% for the month of June, outperforming its benchmark (S&P/ASX 300 Accumulation Index) by 0.5%. Iress Limited, Resmed Inc. and Technology One Limited saw the strongest share price performance during the month. Block Inc., HUB24 Limited and Xero Limited declined.
It has undoubtedly been a challenging time for long duration stock investors. Short-term market valuations of high quality, structural growth stocks have been heavily influenced by significant changes in long-term bond yields.
Rather than being fundamentally driven, we believe that the sharp sell-off in high quality, structural growth stocks has been largely driven by short-term macroeconomic factors including a significant increase in long-term government bond yields and an “abundance” of nominal economic growth (read more here). We expect both factors to be temporary in nature and to reverse in the future.
As discussed in our latest Whitepaper (here), there are increasing signs that economic growth is slowing from the high levels achieved during the cyclical recovery following COVID19, with leading indicators suggesting further declines in growth over the next six to twelve months. A material economic slowdown should mean that inflation returns to low levels over the short to medium term.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-June-2022-1.pdfMay, 2022
The Hyperion Australian Growth Companies Fund returned -6.1% for the month of May, underperforming its benchmark (S&P/ASX 300 Accumulation Index) by 3.4%. GQG Partners Inc was a standout contributor to performance for the fund during the month while Seek Limited and Block Inc. were detractors. As discussed in our latest Webinar (replay here), inflationary pressures have continued to dominate headlines and put pressure on asset prices. Our view remains unchanged that high levels of inflation will likely be temporary as supply-side disruptions ease, higher oil prices impact demand, and as central banks begin withdrawing monetary policy support. All of these actions act as a tax on the consumer.
There is increasing evidence emerging to suggest that we may be near peak inflation and growth is starting to roll off with signs of a slowing consumer demand profile. For example, retail inventory has been building up that we think is indicative of consumer-demand falling, real wages have been falling in most countries around the world, and government spending has declined significantly which would create a drag on economic growth.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-May-2022.pdfApril, 2022
The Hyperion Australian Growth Companies Fund returned -7.0% for the month of April, underperforming its benchmark (S&P/ASX 300 Accumulation Index) by 6.1%. CSL Ltd and Macquarie Group Limited performed well during the month as financials improved. Block Inc. and Wisetech Global Limited were detractors.
Macroeconomic and geopolitical pressures continue to weigh heavily on equity markets. Macro factors (not stock fundamentals) appear to be driving the recent portfolio underperformance. Capital rotation continues, what we describe as selling the future to buy the past or selling long duration, high growth (non-cyclical) stocks, and buying short duration, low growth (cyclical) stocks.
We believe that short-termism and fear are dominating market pricing currently. Our view remains unchanged that high levels of inflation will likely be temporary as supply-side disruptions ease and as central banks begin withdrawing monetary policy support. However, if we are wrong and a high-inflation environment remains more persistent than anticipated, we believe that our companies have superior pricing power due to their strong value propositions that will be resilient through a period of rising rates. Read more on our views on inflation.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-April-2022.pdfMarch, 2022
The Hyperion Australian Growth Companies Fund returned +6.7% for the month of March, underperforming its benchmark (S&P/ASX 300 Accumulation Index) by 0.2%. Energy and Material sectors continued to show strength due to elevated commodity prices.
Block (formerly Square) and Wisetech Global performed well during the month following strong reported results. Fisher & Paykel and James Hardie were detractors, with the former continuing to feel the lingering effects of COVID-19-induced slowdowns, while global supply chain pressures have been weighing on James Hardie. Global macro and geopolitical pressures continue to weigh heavily on equity markets.
However, as the market digested the conclusion of the latest financial reporting season, it appears that businesses and investors alike started to show signs of confidence in underlying company fundamentals. Hyperion believes, despite rising inflation and rate rises, the underlying global economy remains fragile, and quality, structural growth companies will prevail over the long term. We continue to believe that the high levels of economic growth and inflation that we have experienced recently are not likely to be long lasting
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-March-2022.pdfFebruary, 2022
February saw a period of significant market volatility as global equity markets finished mostly lower, with the MSCI World Index declining 2.6% over the month. Russia saw a raft of Western sanctions following its invasion of Ukraine in late-February including the removal of key Russian banks from the global interbank messaging system, SWIFT, and the freezing of Russian Central Bank assets including its foreign reserves. In the U.S., the S&P 500 Index returned -3.0% with economic data revealing US consumer prices rose at an annualised rate of 7.5% in January (compared to 7.0% in December), the largest increase in 40 years.
Additionally, the US 10-year Treasury yield rose above 2% for the first time since 2019. In Europe, the FTSE 100, Euro STOXX 50, and German DAX indices returned +0.3%, -5.9%, and -6.5%, respectively. During the month, Christine Lagarde, the European Central Bank President, while refusing to rule out an interest rate rise this year, downplayed the tightening of monetary policy, citing the inability of central bank policy to deal with supply-side issues and the belief that current price pressures will subside over the medium term. In the U.K., GDP grew at an annualised rate of 7.5% in the December quarter, the highest since World War II, though the Bank of England cut its forecasts for 2022 economic growth citing reduced consumer spending power from higher inflation. In Australia, the S&P/ASX 300 Accumulation Index returned +2.1% during the month. January employment figures were strong with 12,900 new jobs added while the unemployment rate remained steady at 4.2%. Coronavirus case numbers continued falling in most States and Territories and the Government lifted all remaining travel restrictions for international arrivals. Energy (+8.4%), Consumer Staples (+5.4%), and Materials (+5.1%) were the best performing S&P/ASX 300 sectors while Information Technology (-6.8%), Consumer Discretionary (-5.0%), and Communication Services (-2.1%) lagged. Commodities rallied throughout the month with Brent Crude Oil rising above US$100 per barrel for the first time since 2014.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-February-2022.pdfJanuary, 2022
Global equity market indices were down in January as hawkish central bank policies and escalating tensions in Ukraine dominated headlines. The MSCI World Index fell 4.9% over the month. In the U.S., the S&P 500 Index returned -5.2%, the NASDAQ Composite Index returned -9.0% and the Dow Jones Industrial Average ended the month down 3.2%. While the Federal Reserve (Fed) maintained the federal funds rate at 0.00% to 0.25%, it signalled it may soon be appropriate to raise its target rate range given the remarkable progress in the labour market and inflation that is above its 2% long-term goal. Economic data revealed the Core Personal Consumption Expenditure Price Index, the Fed’s preferred inflation measure, rose at an annualised rate of 4.9% in December, the fastest gain since September 1983. The Employment Cost Index, a popular measure of wage growth, also rose at an annualised rate of 4.0% in December, marking the biggest annual gain on record. In Europe, the Euro STOXX 50, German DAX, and FTSE 100 indices returned -2.7%, -2.6%, and 1.1%, respectively. In the UK, the Consumer Prices Index rose by 5.4% in the 12 months to December 2021 while the Euro area saw annual inflation hit 5.0%. The European Central Bank held its benchmark refinancing rate, marginal lending facility, and deposit facility at 0.00%, 0.25%, and -0.50%, respectively. In Australia, the S&P/ASX300 Index posted a -6.5% return for January. Headline CPI rose 3.5% in the year to December 2021 while the RBA’s preferred measure of inflation, the trimmed mean CPI rose by 2.6% on the prior year. NAB’s Monthly Business Survey pointed to a decline in business confidence with the index falling 24 points to -12 in December. Most States and Territories saw coronavirus infections peak in mid- January, though Western Australia has delayed the opening of its borders to the rest of Australia. Energy (+7.5%), Utilities (+2.6%), and Materials (+0.4%) were the best performing S&P/ASX 300 Index sectors for January while Information Technology (-17.1%), Healthcare (-12.1%), and Consumer Staples (-9.6%) were the worst performers.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-January-2022.pdfDecember, 2021
Global equity market indices were broadly up during December as the rapid spread of the new Omicron COVID-19 variant continued to dominate headlines. In the U.S., the S&P 500 Index returned +4.5%. Economic data revealed the Core Personal Consumption Expenditure Price Index, the Fed’s preferred inflation measure, rose at an annualised rate of 4.7% in November, the IHS Markit Composite PMI decreased to 57.0 in December, and the third estimate of real GDP revealed it increased at an annual rate of 2.3% during the third quarter of 2021. In addition, the Federal Reserve (Fed) maintained the federal funds rate at 0.00% to 0.25%, noting that despite inflation exceeding its +2% target for some time it will maintain the federal funds rate until labour market conditions reach levels of maximum employment.
The Fed will also reduce the monthly pace of its net asset purchases by $20b for Treasury securities and $10b for agency mortgage-backed securities. In Europe, the Euro STOXX 50, German DAX, and FTSE 100 indices returned +5.8%, +5.2% and +4.8%, respectively. During the month, the IHS Markit Eurozone Composite PMI decreased to 53.3 in December, seasonally adjusted GDP increased by 2.2% during the third quarter of 2021, and the annual inflation rate increased to 4.9% in November. The European Central Bank held its refinancing operations, marginal lending facility and deposit facility rates at 0.00%, 0.25% and -0.50%, respectively, and will discontinue net asset purchases under its pandemic emergency purchase programme at the end of March 2022. In Australia, the S&P/ASX 300 Index returned +2.7%. Economic data revealed the unemployment rate decreased to 4.6% in November, CPI rose to an annual rate of 3.0% during September, GDP increased at an annual rate of 3.9% during the third quarter, and the Markit Composite PMI decreased to 54.9 in December. Utilities (+7.9%), Materials (+6.2%), and REITs (+5.2%) were the best performing S&P/ASX 300 Index sectors, Information Technology (-5.8%), Consumer Staples (-2.3%), and Health Care (-2.2%) were the worst performers. The U.S. dollar was weaker against most G10 currencies during December, except against the Japanese YeN
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-December-2021-1.pdfNovember, 2021
Global equity market indices broadly declined during November as the discovery and spread of a new COVID-19 variant named “Omicron” dominated headlines. In the U.S., the S&P 500 Index returned -0.7% with economic data revealing the unemployment rate fell to 4.2% in November, the IHS Markit Composite PMI decreased to 57.2 in November, and real GDP increased at an annual rate of 2.1% during the third quarter of 2021.
In addition, the Federal Reserve announced its intention to commence tapering of its monetary stimulus program by reducing its monthly asset purchases by US$15b per month. In Europe, the FTSE 100, German DAX, and Euro STOXX 50 indices returned -2.2%, -3.8% and -4.3%, respectively. During the month, the IHS Markit Eurozone Composite PMI increased to 55.4, seasonally adjusted GDP increased by 2.2% during the third quarter of 2021, and the unemployment rate fell to 7.3% in October. In Australia, the S&P/ASX 300 Index returned -0.5%. Economic data revealed the unemployment rate increased to 5.2% in October and the Markit Composite PMI increased to 55.7 in November. Materials (+6.0%), Communication Services (+4.7%), and Consumer Staples (+4.1%) were the best performing S&P/ASX 300 Index sectors, whilst Energy (-7.8%), Financials (-6.9%), and Consumer Discretionary (-1.5%) were the worst performers. The U.S. dollar was stronger against most G10 currencies during November, except against the Japanese Yen
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/ASSF_FR-Nov-21.pdfOctober, 2021
Global equity indices broadly rose during the month. The International Monetary Fund reduced its 2021 annual global growth forecast from 6.0% to 5.9%, warning of repercussions for global equity and housing markets as major central banks wind back pandemic related support programs. In the U.S., the S&P 500 Index returned +7.0% during October. An advance estimate revealed real gross domestic product annual growth of 2.0% in the third quarter of 2021.
In September, unemployment declined by 0.4% to 4.8%, non-farm payroll employment rose by 194,000 jobs, and the Consumer Price Index (CPI) rose by 5.4% year-overyear before seasonal adjustments. Energy and Food items within the index increased by 24.8% and 4.6% respectively over the period. In Europe, the Euro STOXX 50, German DAX and FTSE 100 returned +5.2%, +2.8% and +2.2%, respectively. Euro Area GDP grew by 2.2% in the September quarter, and increased 3.7% over the prior corresponding period. Preliminary estimates showed annual inflation is expected to be 4.1% in October, reflecting the highest level since July 2008. Elevated inflation levels were driven by Energy index items which rose at an annual rate of 23.5%. In Australia, the S&P/ASX 300 Index returned +0.1%. The unemployment rate rose marginally from August levels to 4.6% in September
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-October-2021.pdfSeptember, 2021
Global equity market indices were broadly down during September, as inflation and the continued spread of the Delta COVID-19 variant remained topical. In the U.S., the S&P 500 returned -4.7% during September, the unemployment rate declined by 0.2% to 5.2% in August, the Composite PMI fell to 55.0 in September, whilst the consumer price index rose slightly to an annualised rate of 5.3% in August. The Federal Reserve also declared a path to tapering its monthly bond purchases in the near term with the process expected to start after the November meeting and conclude around the middle of 2022. In Europe, the FTSE 100, Euro STOXX 50 and German DAX returned -0.2%, -3.4% and -3.6%, respectively. The latest unemployment figures released during the month reflected a slight decline to 7.5%, whilst the IHS Markit Eurozone Composite PMI declined to 56.2 in September as shortages of inputs impeded both manufacturing and services sector outpu
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-September-2021.pdfAugust, 2021
Major global equity indices broadly rose during the month, except for the Hang Seng Index which returned -0.1% during August. News of the Delta COVID-19 variant in the U.S. and its resurgence in China continued to dominate headlines. In the U.S., the S&P 500 Index returned +3.0% during August. The Chicago Fed National Activity Index increased to 0.53 in July, up from -0.01 in June. The JOLTS job openings survey reflected a series high increase, with the August employment data also showing a decline in the unemployment rate to 5.2%. Despite this, the NFIB Small Business Optimism survey showed a decrease to 99.7, contrasting from the gain recorded in June. Housing starts were also down in July by -7.0% from June levels. In Europe, the Euro STOXX 50, German DAX and FTSE 100 returned +2.6%, +1.9% and +2.1%, respectively.
The Euro Area unemployment rate declined to 7.6% in July, while the annual Harmonised Index of Consumer Prices (HICP) increased to 2.2% in July. This marks the highest level since October 2018. Further, the Euro Area Business Climate Indicator moderated to 1.75 in August, down from 1.88 points in July. In Australia, the ASX 300 Index returned +2.6%. July data revealed retail trade declined by 2.7% during the month while unemployment declined to 4.6%. Meanwhile, the underemployment rate increased to 8.3% as the Flash PMIs for August reflected 15-month lows in the Composite Output, Services Business Activity indices and a 14-month low in the Manufacturing Output index. This data is on the back of continued lockdowns across several Australian states due to the spread of the Delta variant, as well as historically elevated input price inflation. Information Technology (+16.2%), Consumer Staples (+6.8%), and Health Care (+6.6%) were the best performing S&P/ASX 300 Index sectors, whilst Materials (-6.9%), Energy (-3.8%), and Utilities (+1.0%) were the worst performers. The U.S. dollar was broadly stronger against most G10 currencies during August, except against the New Zealand Dollar and Norwegian Krone
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-August-2021.pdfJuly, 2021
Global equity markets experienced mixed results during July as the spread of the Delta COVID-19 variant dominated headlines. On the economic front, the IMF maintained its 2021 global growth forecast of 6% and upgraded its 2022 forecast to 4.9%, but warned of a widening divergence in the global economic recovery between advanced and developing economies. In the U.S., the S&P 500 returned +2.4%, second quarter GDP increased at an annualised rate of 6.5% in June, the Composite PMI fell to 59.7 in July, whilst the core Personal Consumption Expenditure Index, the Fed’s preferred inflation measure, rose to annualised rate of 4.0% in June. The Federal Reserve maintained its target range for the federal funds rate at 0.00% to 0.25% and expects to maintain an accommodative stance on monetary policy until labour market conditions improve and inflation is expected to moderately exceed 2% for some time. In Europe, the Euro STOXX 50, German DAX and FTSE 100 returned +0.8%, +0.1% and +0.1%, respectively.
During the month, the IHS Markit Eurozone Composite PMI increased to 60.2 in July, reflecting the highest reading since July 2000, whilst second quarter GDP increased at an annualised rate of 13.7% in June. The European Central Bank held its refinancing operations, marginal lending facility and deposit facility rates at 0.00%, 0.25% and -0.50%, respectively, and will continue to conduct net asset purchases under the pandemic emergency purchase programme worth €1,850b until at least the end of March 2022. In Australia, the ASX 300 returned +1.1%, the unemployment rate fell to 4.9% in June, and the Composite PMI fell to a 14-month low of 45.2 in July, as private sector output and demand across both the manufacturing and services sectors declined. Materials (+7.1%), Industrials (+4.1%), and Utilities (+1.6%) were the best performing S&P/ASX 300 Index sectors, whilst Information Technology (-6.4%), Energy (-2.4%), and Communication Services (-1.5%) were the worst performers. The U.S. dollar was broadly stronger against most G10 currencies during July, except against the Pound Sterling, Japanese Yen, and Swiss Franc.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-July-2021.pdfJune, 2021
Global equity markets rose modestly throughout June as inflation fears remained topical. In the U.S., the S&P 500 returned +2.3%, with the Federal Reserve (Fed) releasing positive bank stress test results and President Biden announcing an agreement with a bipartisan group of senators on a US$579b infrastructure plan. Data revealed that the unemployment rate was little changed at 5.9% in June, the Composite PMI fell from the May record of 68.7 to 63.7, whilst the core Personal Consumption Expenditure Index, the Fed’s preferred inflation measure, rose to 3.4% in May. In Europe, the Euro STOXX 50, German DAX and FTSE 100 returned +0.7%, +0.7% and +0.4%, respectively.
During the month, the Composite PMI increased to 59.5, reflecting the fastest increase in private sector activity since June 2006. The European Central Bank quelled concerns of heightened inflation by committing to maintain its €1.85t pandemic emergency purchase programme with purchases expected to run at a significantly higher pace than during the first months of the year. Furthermore, the Bank of England kept its bank rate at 0.1% and maintained the total size of its asset purchase programme at £895b. In Australia, the ASX 300 returned +2.3%. Australian Prime Minister, Scott Morrison, finalised the Australian-United Kingdom Free Trade Agreement with UK Prime Minister, Boris Johnson, facilitating the deregulation of Australia’s lamb, beef, and sugar exports.
Additionally, during May the unemployment rate decreased from 5.5% to 5.1% and 115,000 jobs were created. Information technology (+12.4%), Communication services (+5.6%) and REITs (+5.6%) were the best performing S&P/ASX 300 Index sectors, whilst Financials (-0.2%), Materials (+0.1%) and Health Care (+2.1%) were the worst performers. The U.S. dollar was stronger against all G10 currencies during June.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/Hyperion-Australian-Growth-Companies-Fund-Update.pdfMay, 2021
Global equity market indices broadly rose during May, as inflation expectations in the U.S. and COVID-19 restrictions across Europe remained topical. In the U.S., the S&P 500 Index returned +0.7% with data revealing that the IHS Markit U.S. Composite PMI climbed to an all-time high of 68.1 in May, whilst the core Personal Consumption Expenditure Index, the Fed’s preferred measure of inflation, rose to an annual rate of 3.1% in April.
In Europe, the Euro STOXX 50, German DAX, and FTSE 100 indices returned +3.3%, +2.5% and +1.1%, respectively. The IHS Markit Eurozone Composite PMI increased to 56.9 in May, with manufacturing continuing to perform strongly whilst services improved to a rate not seen since June 2018 as the easing of COVID-19 related restrictions facilitated a revival in demand. Furthermore, the Bank of England increased its 2021 growth forecast for the U.K. from 5.00% to 7.25% and maintained its quantitative easing target of £875b, but reduced its weekly asset purchases from £4.4b to £3.4b. In Australia, the S&P/ASX 300 Index returned +2.3%. Economic data revealed that the unemployment rate declined to 5.5% and the IHS Markit Australia Composite PMI fell to 58.1 in May following a slight slowdown in aggregate new order growth due to supply constraints.
Additionally, the Australian Federal Budget was released and forecasts a deficit of $106.6b or 5% of GDP for the 2021-22 Year, peaking at 40.9% of GDP in 2025, and then declines over time. Financials (+5.7%), Health Care (+3.5%) and Consumer Discretionary (+3.2%) were the best performing S&P/ASX 300 Index sectors, whilst Information Technology (-9.1%), Utilities (-6.6%) and Energy (-1.5%) were the worst performers. The U.S. dollar was weaker against most G10 currencies during May, except against the Norwegian Krone and Japanese Yen.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-May-2021.pdfApril, 2021
Global equity market indices broadly extended their gains for a third consecutive month, despite inflation fears in the U.S. and a new wave of COVID-19 infections dominating headlines across Europe. In the U.S., the S&P 500 Index returned +5.3% with data revealing that the unemployment rate was little changed at 6.1% in April, the IHS Markit Composite PMI increased to 63.5 in April, and the advanced GDP report indicated an annualised gain of 6.4%. In addition, the Federal Reserve left rates unchanged, acknowledging that the economy was improving whilst continuing to buy at least US$120b of bonds each month. In Europe, the FTSE 100, Euro STOXX 50, and German DAX indices returned +4.1%, +1.9% and +0.8%, respectively.
During the month, the IHS Markit Eurozone Composite PMI increased to 53.8 in April, with manufacturing continuing to perform strongly whilst services improved despite the negative impacts of ongoing lockdowns in the region. Furthermore, the European Central Bank held its refinancing operations, marginal lending facility and deposit facility rates at 0.00%, 0.25% and -0.50%, respectively, and will continue to conduct net asset purchases under the pandemic emergency purchase programme worth €1,850b until March 2022. In Australia, the S&P/ASX 300 Index returned +3.7%. Economic data revealed that the unemployment rate fell to 5.6% and dwelling prices increased 1.7% in April after a 2.6% increase during March, the strongest monthly increase since 1988. In addition, the Reserve Bank of Australia left its policy settings unchanged noting that the economic recovery was well under way and had been stronger than expected.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-April-2021.pdfMarch, 2021
Global equity market indices exhibited generally positive results during March as many countries continued their vaccine rollout programmes. Supply chain disruptions were also the focus of news outlets with the weeklong Suez Canal blockage reducing daily global trade by approximately 12%. In the U.S., the S&P 500 Index returned +4.4% with economic data revealing that the unemployment rate decreased to 6.0% in March, as total nonfarm payroll employment increased by 916,000, predominantly across leisure and hospitality, public and private education, and construction. During the month, the Biden administration announced the “American Jobs Plan” worth US$2.0t aimed at creating jobs, rebuilding infrastructure, and positioning the United States strongly against global counterparts. The S&P CoreLogic Case-Shiller National Home Price Composite Index increased by +11.2% year-on-year in January, reflecting the highest recorded increase since February 2006. In Europe, the FTSE 100, Euro STOXX 50 and German DAX Indices returned +4.2%, +7.9% and +8.9%, respectively. Economic estimates of Euro area annual inflation were revealed to be 1.3% in March, while the United Kingdom’s “Roadmap out of Lockdown” began to take effect. Virus restrictions were hardened in some areas of Europe such as France and Italy. Despite this, the Markit Eurozone Manufacturing PMI revealed strong month-on-month expansion from 57.9 to 62.5, marking PMI survey record growth. In Australia, the S&P/ASX 300 Index returned +2.3%. Retail sales data revealed a decline of -0.8% month-over-month in February while the unemployment rate decreased further to 5.8%. The seasonally adjusted figure for total dwelling approvals increased by +21.6% in February, largely driven by private sector houses. Utilities (+6.8%), Consumer Discretionary (+6.7%) and REITs (+6.3%) were the best performing S&P/ASX 300 Index sectors. Materials (-3.1%), Information Technology (-2.7%) and Energy (-0.2%) were the worst performers. The U.S. dollar was up against most of the G10 currencies during the month but declined against the Canadian Dollar and Norwegian Krone.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-March-2021.pdfFebruary, 2021
Global equity market indices exhibited positive results during February, with the declining global daily rate of COVID-19 cases and continued global vaccine rollout dominating headlines. In the U.S., the S&P 500 Index returned +2.8%. Economic data continues to indicate a domestic recovery in the U.S., revealing that the International Trade Deficit declined by -3.5% in December 2020. The IHS Markit Manufacturing and Services PMIs improved to 58.6 and 59.8 respectively, the highest expansion in production output and business activity in over six-and-a-half years. The US$1.9t “American Rescue Plan” was also passed by the House of Representatives and awaits approval from the Senate. In Europe, the FTSE 100, Euro STOXX 50 and German DAX indices returned +1.6%, +4.6% and +2.6%, respectively. In Asia, the Hang Seng, Shanghai SE Composite and Nikkei 225 indices returned +2.5%, +0.6% and +4.8%, respectively. Japanese economic data showed preliminary month-on-month Industrial Production growth of 4.2%. Meanwhile, the Caixin PMI data revealed a fall in the pace of the COVID-19 recovery in mainland China as both the Manufacturing and General Composite figures decreased to 50.9 and 51.7, respectively. In Australia, the S&P/ASX 300 Index returned +1.5%. The unemployment rate fell further to 6.4% in January as preliminary economic data revealed month-on-month growth in Retail Sales of 0.6%. Materials (+7.1%), Financials (+5.1%) and Energy (+2.5%) were the best performing S&P/ASX 300 Index sectors. Information Technology (- 8.0%), Utilities (-8.0%) and Consumer Staples (-4.5%) were the worst performers. The U.S. dollar was mixed during the month against the G10 currencies, down against the Pound Sterling and Australian Dollar, while rising against the Swiss Franc and Japanese Yen.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-Feburary-2021.pdfJanuary, 2021
Global equity market indices experienced mixed results during the first month of 2021, as the global rollout of COVID19 vaccinations and promises of further fiscal and monetary stimulus measures dominated headlines. In the U.S., the S&P 500 Index returned -1.0% as economic data revealed that U.S. GDP is growing at a preliminary annualised rate of 4.0%. The nation’s core Personal Consumption Price Index, the Federal Reserve’s preferred inflationary measure, is running at an annualised rate of 1.5% and its unemployment rate remained at 6.7%. In addition, the newly elected Biden-led administration proposed a US$1.9t “American Rescue Plan”, on top of the bi-partisan US$ 900b fiscal stimulus plan agreed in late December.
In Europe, the FTSE 100, Euro STOXX 50 and German DAX indices declined -0.8%, -1.8% and -2.1%, respectively. During the month, the IHS Markit Eurozone composite PMI fell for a second consecutive month to 47.8 as lockdown restrictions continued to drive the two-speed economy, with services sector activity suffering from local restrictions and lagging behind manufacturing output activity. Furthermore, the ECB held its refinancing operations, marginal lending facility and deposit facility rates at 0.00%, 0.25% and -0.50%, respectively, and extended its Pandemic Emergency Purchase Program to March 2022, worth €1,850b. In Australia, the S&P/ASX 300 Index returned +0.3%.
Economic data revealed that the unemployment rate fell to 6.6% whilst preliminary December retail sales fell -4.2%. Consumer Discretionary (+4.8%), Communication Services (+2.6%) and Financials (+2.3%) were the best performing S&P/ASX 300 Index sectors. REITs (-4.1%), Industrials (-3.1%) and Health Care (-1.7%) were the worst performers. Across foreign exchange markets, the U.S. dollar was mostly up against the G10 currencies during January, except against the New Zealand Dollar, Norwegian Krone and Pound Sterling.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HGGCF-B-Fund-Update-January-2021.pdfDecember, 2020
Global equity market indices extended their gains for a second consecutive month, ending December near all-time highs. Major global headlines featured the confirmation of the U.S. presidential election victory by the Biden-led Democratic Party while Great Britain and the European Union reached a Brexit Trade Deal after five years of negotiations. Headlines also featured news of the newly discovered highly contagious strain of COVID-19 which sparked strict Christmas border restrictions and shutdowns. In the U.S., the S&P 500 Index returned +3.8% during the month.
New York Federal Reserve November economic data revealed one-year forward consumer inflation expectations beat consensus estimates, reaching 3.0%. In addition, the IHS Markit Manufacturing PMI increased to 57.1 in December, marking the sharpest observed recovery in U.S. manufacturing sector operating conditions since September 2014. In Europe, the FTSE 100, Euro STOXX 50 and German DAX indices returned +3.3%, +1.8% and +3.2%, respectively. During the month, the European Commission Economic Sentiment Indicator improved +2.7 points to 90.4 and Flash Consumer Confidence data revealed improved conditions with the indicator increasing to -13.9 from -17.6 in November. Lockdown restrictions continued leading into Christmas, as Eurozone retail sales decreased by -6.0% over the month. In Australia, the S&P/ASX 300 Index returned +1.3% during December. It was revealed by ANZ that Job Advertisements grew +13.9% in November as reopening throughout the country continued. During the month, the IHS Markit Manufacturing PMI declined slightly from the 35-month high reached in November to 55.7, while the seasonally adjusted Business Activity Index rose to 57.0, signalling boosted activity as restrictions were eased. The best performing S&P/ASX 300 Index sectors for the month were Materials (+8.8%), Information Technology (+8.6%) and Consumer Staples (+2.2%) while Utilities (- 5.4%), Health Care (-4.7%) and Industrials (-2.2%) were the worst performers. Global commodity prices continued to rise across the board, with energy commodities and non-energy commodities increasing +15.0% and +4.7% respectively during the month. The U.S. dollar depreciated against all G10 currencies, most notably against the Australian Dollar (-4.5%), Swedish Krona (-3.9%) and Norwegian Krone (-3.3%).
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-December-2020.pdfNovember, 2020
Global equity markets exhibited a strong rebound in November on the back of positive COVID-19 vaccine announcements from Pfizer, Moderna and AstraZeneca. Furthermore, global equity markets reacted positively to increased certainty regarding the Biden-Trump U.S. election, and European COVID-19 related restrictions which appear to be successfully reducing the speed and quantum of community transmissions. In the U.S., the Dow Jones Index returned +11.8%, reaching a new record level and recording the best monthly performance since January 1987. U.S. economic data revealed Non-Farm payrolls increased by 245,000 in November, lowering the unemployment rate to 6.7%, which is down from the 14.7% April high. Housing starts also beat expectations, increasing +4.9% during October.
In Europe, the FTSE 100, Euro STOXX 50 and German DAX indices returned +12.7%, +18.1% and +15.0%, respectively. During the month, the IHS Markit Eurozone Manufacturing PMI dropped slightly to 53.8, while the Eurozone Services Business Activity Index indicated a sharp contraction, falling by 5.2 points to 41.7. Lockdown restrictions continued to drive the two-speed economy as services sector activity suffered from local restrictions and continued to lag behind manufacturing output activity. In Australia, the S&P/ASX 300 Index returned +10.2%. Australian economic data revealed better than anticipated monthly activity data with October retail sales growing by 1.4%, and employment increasing by 178,800 in October. A shift to Value sectors during the month saw Energy (+28.2%), Financials (+16.1%) and Communication Services (+14.4%) as the best performing S&P/ASX 300 Index sectors.
Consumer Staples (-0.7%), Utilities (+1.5%) and Healthcare (+2.9%) were the worst performers. Global commodity prices rose steeply during the month of November, driven by energy commodities (+6.4%) and non-energy commodities (+4.4%). The U.S. dollar depreciated against all G10 currencies, most notably against the Norwegian Krone (-7.3%), New Zealand Dollar (-6.0%) and Australian Dollar (-4.7%)
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-November-2020.pdfOctober, 2020
Global equity markets continued to decline in October as the U.S. presidential election, spikes in COVID-19 infections in the U.S. and a second COVID-19 wave in Europe dominated headlines. In the U.S., the S&P 500 Index returned -2.7% with economic data revealing real GDP increased at an annualised rate of 33.1% in 3Q20 after declining 31.4% during 2Q20, as record fiscal stimulus measures began to assist households and businesses. In addition, the IHS Markit Flash U.S. Composite PMI edged slightly higher to 55.5 as output growth regained momentum following a rise in business activity across the services and manufacturing sectors. In Europe, the FTSE 100, Euro STOXX 50 and German DAX indices returned -4.7%, -7.3% and -9.4%, respectively. During the month, the IHS Markit Eurozone Composite PMI slipped to 50.0 following stagnant private sector economic activity. The headline index figure masked a two-speed economy, which saw continued growth in manufacturing output but deteriorating services sector activity. In Australia, the S&P/ASX 300 Index returned +1.9%. Australian economic data revealed that the unemployment rate rose to 6.9% and preliminary September retails sales fell 1.5%. Information technology (+8.6%), financials (+6.3%) and consumer staples (+4.6%) were the best performing S&P/ASX 300 Index sectors. Industrials (-3.5%), utilities (-1.5%) and materials (-1.1%) were the worst performers. Global commodity prices fell during the month, partly driven by an appreciating U.S. dollar which was mostly down against G10 currencies except the Norwegian Krone, Australian Dollar, Euro and New Zealand Dollar.
File: https://commentary.quantreports.net/wp-content/uploads/2020/11/HAGCF-Fund-Update-October-2020.pdfticker: BNT0003AU
commentary_block: Array
factsheet_url:
Monthly Fund Update , may need to use Acrobat DC Edit PDF then copy
https://www.hyperion.com.au/hyperion-australian-growth-companies-fund/
release_schedule: Monthly
fund_features:
Hyperion Australian Growth Companies Fund seeks to achieve medium to long-term capital growth and income by investing primarily in high calibre Australian companies listed within the S&P/ASX 300 Index, at the time of investment.
- Hyperion is a fundamental bottom-up growth style Manager.
- Uses rigorous and in-depth quantitative and qualitative analysis to establish a unique portfolio.
- The Fund invests in growth-oriented companies which pass Hyperion’s rigorous investment process.
- Highly concentrated with roughly 15-30 stocks.
- Aim to achieve a total return exceeding the S&P/ASX 300 Accumulation Index over a five-year horizon.
manager_contact_details: Array
asset_class: Domestic Equity
asset_category: Australia Large Growth
peer_benchmark: Domestic Equity - Large Growth Index
broad_market_index: ASX Index 200 Index
structure: Managed Fund