December, 2020
The S&P/ASX 300 Accumulation index made some further gains (+1.3%) in December, capping the year’s return at +1.7%. Stronger commodity prices, the iron ore in particular, which gained ~70% over the year propelled returns for Resources (+8.4%/+9.2% Dec/CY20); whereas Industrials (-0.4%/-0.1%) were the laggard. Covid cases in the US continue to rise and Europe has started to deteriorate again. In the UK concern centres on the rise of cases in London, and the focus has been on a potentially new strain/variant of Covid-19. While it has proven more infectious, there is no evidence to suggest this new strain will make people sicker or is more resistant to vaccines. The latter is critical to market sentiment. Despite worsening health news and greater restrictions, the economy is holding up better than expected. This is despite softer consumer confidence and shoppers holding back from physical retailers and restaurants. November retail sales, released in December were softer, but real times measures suggest this may have picked up again. Surveys for holiday sales continue to look ok, with a substantial shift to online.
Global equity markets ended the year off well with positive US stimulus news and progress on vaccine rollouts contributing to positive returns. The MSCI World ex Australia (Net Dividends) Standard in USD earned a positive return over the month (4.20%). However, with US stimulus approved during December, the US Dollar weakened. Australian investors suffered from a large rise of 4.72% in the Australian dollar vs the US dollar, which saw the MSCI World ex Australia (Net Dividends) Standard in AUD return a negative -0.50%. Driving global markets higher was the US market and especially the Nasdaq which rose 5.65% in local currency terms, whilst the broader S&P 500 rose 3.84%.
European markets also rose with the German DAX market gaining 3.22% and the UK FTSE market rising 3.10%. Asian markets showed positivity with the Hang Seng (3.38%) and Nikkei (3.82%) both earning positive returns in local currency terms. However, the rise in the Australian dollar vs the Yen (3.69%) and Hong Kong dollar (4.74%) softened these returns for Australian investors. While positive US stimulus news and progress on vaccine rollouts bolstered markets in December, continuing fears of the SARSCoV-2 strain of coronavirus and further lockdowns weigh on global markets moving into 2021.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/163695070.pdfasset_class: Multi-Asset
asset_category: 81-100% Growth Assets - Diversified
peer_benchmark: Multi-Asset - 81-100% Diversified Index
broad_market_index: Multi-Asset Aggressive Investor Index
manager_contact_details: Array
ticker: BTA0488AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
https://investmentcentre.moneymanagement.com.au/factsheets/mi/ng6g/pendal-active-high-growth
QUICK LINKS
Provider’s own factsheet
fund_features:
Pendal Active High Growth Fund aims to provide a return (before fees, costs and taxes) that exceeds the Fund’s benchmark over the medium to long term. This Fund is designed for investors who want the potential for long term capital growth and income, diversification across a broad range of asset classes and are prepared to accept higher variability of returns. The Fund invests in Australian and international shares, Australian and international listed property securities, Australian and international fixed interest, cash and alternative investments.
- The Fund may also use derivatives.
- The Fund has assets that are denominated in foreign currencies.
- Fund’s international share exposure will not be hedged to the Australian dollar.
- Derivatives may be used from time to time.
structure: Managed Fund