September, 2023
In September, Emerging Markets declined on the back of surging energy prices and falling precious metal prices. In addition, the US Federal Reserve decided to pause rate hikes, but signalled that rates in the US may stay higher for longer. This led to the US dollar strengthening, which negatively impacted most Emerging Market currencies. During the month, the CC Redwheel Global Emerging Markets Fund fell -3.60% in AUD. The MSCI Emerging Markets Index Net AUD declined -2.28%.
In September, China decreased -2.8% after the country disclosed that exports fell by -8.8% in August. This resulted in the Renminbi falling to its lowest point relative to the US dollar since 2007. Taiwan declined -3.8% after announcing that export orders contracted for the 12th consecutive month in August. South Korea fell -5.1% after preliminary data revealed that exports declined -7.9% year-on-year (YoY) through the first 10 days of September. India gained 1.7% after announcing that inflation slowed to 6.8% YoY in August. The inflation rate fell from the prior month due to lower vegetable prices. Saudi Arabia was down -4.3% after the country’s PMI fell -1.1 points month-on-month (MoM) to 56.6 in August, which was the lowest reading since September 2022, although the economy remains in expansionary territory overall. Brazil rose 0.2% after The Central Bank of Brazil reduced the benchmark Selic rate by 50 basis points (bps) to 12.75%. Redwheel continue to expect that rate cuts will lead to a stronger growth environment.
The Underlying Fund’s holdings in the Materials sector led to a total return of -7.3%, while the benchmark returned -4.1%. The Underlying Fund’s overweight resulted in -61 bps of performance relative to the benchmark. Cemex and Gold Fields declined by -18.6% and -13.0%, respectively. Cemex declined on the back o higher energy costs. The impact on margins should be partially offset by a strong pricing environment for cement. Gold Fields fell after the price of gold weakened during the month. The Underlying Fund’s positioning in China resulted in a total return of -5.7%, compared to the benchmark that returned -2.8%. This drove -104 bps of performance relative to the benchmark. In China, Longfor Group Holdings and Li Auto decreased -14.7% and -14.3%, respectively. Longfor Group Holdings declined after new propertyrelated stimulus was below expectations. In addition, details around the renovation plan for urban villages are still pending. Both have weighed on sentiment in property-related firms. Despite Li Auto reporting that deliveries grew by 296% YoY in the third quarter, competition in the electric vehicle manufacturing industry continues to impact pricing and margins.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/65289035199715ad36005121_CC-Redwheel-Global-Emerging-Markets-Fund-Monthly-Report-September-2023.pdfAugust, 2023
In August, Emerging Market equities declined due to weak investor sentiment around China, volatility in the prices of precious and base metals, and rising Treasury yields in the US. The MSCI Emerging Markets Index Net AUD declined -2.36%, while the CC Redwheel Global Emerging Markets Fund fell -1.80% in AUD terms, leading to outperformance of 56 basis points (bps).
During the month, China fell -9.0% after disclosing that exports fell by -14.5% (in USD terms) in July. The government has introduced new measures to support the economic recovery, such as lowering the one-year loan prime rate to 3.45% from 3.55%.
Redwheel continue to anticipate that the government will introduce additional policies to support the economic recovery. Taiwan decreased -4.5% after reporting that exports fell -10.4% year-on-year (YoY) in July, which was a slower pace compared to June. South Korea declined -7.6% after announcing that retail sales dipped -3.2% month-on-month (MoM) in July. India fell -1.9% on the back of announcing that inflation jumped +7.4% YoY in July. The increase was primarily driven by a surge in the prices of vegetables. Saudi Arabia fell -2.3% after announcing that GDP decreased -0.1% quarter-on-quarter (QoQ). Brazil fell -8.3% after the Central Bank of Brazil cut the Selic rate by 50 bps to 13.25%.
Redwheel expect that lower rates will create growth tailwinds for the Brazilian economy.
In the Materials sector, the Underlying Fund had a total return of -10.6% compared to the benchmark’s total return of -7.3%. The Underlying Fund’s overweight in the sector led to -69 bps of performance relative to the benchmark. First Quantum Minerals and Ivanhoe Mines declined by -9.6% and -16.4%, respectively.
Both stocks declined on the back of the price of copper falling in August. China was an absolute detractor during the month, although some holdings performed well. Longfor Group Holdings and Lizhong Sitong fell by -20.6% and -17.7%, respectively.
Longfor Group Holdings declined after announcing that revenue in 1H23 was weaker than expected due to lower deliveries in the development segment. Lizhong Sitong declined on the back of softer sentiment for electric vehicle-related companies in China due to higher competition at Original Equipment Manufacturers (OEMs).
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/6502a19057625467f9323773_CC-Redwheel-Global-Emerging-Markets-Fund-Monthly-Report-August-2023.pdfJuly, 2023
In July 2023, Emerging Markets rallied on the back of improved sentiment around growth in China following the CCP Politburo meeting. In addition, Emerging Markets were further supported by stronger commodity pricing. During the month, the CC Redwheel Global Emerging Markets Fund returned 7.97% in AUD, and the MSCI Emerging Markets Index Net AUD increased 4.93%.
China gained 10.8% in the month. Following the July Politburo meeting, sentiment in China improved after the government vowed to implement new stimulus policies to aid the economic recovery. Taiwan rose 0.8% on the back of preliminary data being released that pointed to GDP growing 1.5% year-on-year (YoY) in 2Q23, which was a return to growth after 1Q23 GDP fell on a YoY basis.
South Korea increased 6.5% after announcing that 2Q23 GDP increased 0.6%, which was above expectations. India rose 3.0% following the announcement that the country’s industrial output grew 5.2% YoY in May.
In EMEA, Saudi Arabia rose 2.2% after oil prices increased in July following the production cuts in recent months. In Latin America, Brazil rose 4.9% after revealing that inflation rose by 3.2% in June. This was the lowest level in nearly three years.
There were single stock detractors during the period. In Brazil, Sendas Distribuidora declined -8.4% after announcing that decelerating inflation in food led to softer than expected earnings during the quarter. Redwheel continues to believe that earnings will strengthen as rates fall in Brazil. In Taiwan, Global Unichip fell by -8.4% after the company announced that sales will grow at a slower than expected pace for 2023 due to the ongoing inventory adjustment in legacy semiconductor applications, such as consumer electronics.
The Underlying Fund’s positioning in the Materials sector led to a total return of 15.2%, compared to its benchmark which increased 8.4%. This led to 136 basis points (bps) of outperformance relative to the benchmark.
First Quantum Minerals and Zijin Mining Group increased by 25.5% and 16.6%, respectively. First Quantum Minerals rose due to the price of copper rising during the month. Zijin Mining Group benefitted from the prices of gold and copper increasing in July. The Underlying Fund’s positioning in the Communication Services sector was also a positive contributor to performance and led to 129 bps of outperformance.
Kuaishou Technology and Baidu rose by 26.1% and 14.7%, respectively. The outlook for both companies remains strong, and Redwheel anticipates that policy tailwinds in China may accelerate the expected growth for each company.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/64dc20b8b3bc0656a2315ae0_CC-Redwheel-Global-Emerging-Markets-Fund-Monthly-Report-July-2023.pdfJune, 2023
In June, Emerging Markets rallied after numerous central banks, such as in India and Brazil, decided to hold their benchmark interest rates at current levels as inflation continued to trend lower. Sentiment in Emerging Markets was further bolstered by reports that China is working on a new stimulus package to fuel growth. Against this backdrop, the CC Redwheel Global Emerging Markets Fund returned 2.83% in AUD and the MSCI Emerging Markets Index Net AUD rose 0.91%.
In Asia, China increased 4.0% after the one-year and five-year loan prime rates were reduced by 10 basis points (bps) to 3.55% and 4.20%, respectively. This is a sign that policymakers are attempting to improve economic growth amidst the economic reopening. Taiwan gained 1.7% after the Finance Ministry estimated that exports would pick up towards the end of the third quarter. South Korea rose 0.6% after the Bank of Korea reported that the United States replaced China as the country’s largest buyer of exports in 2022. India increased 4.7% as signs continue to emerge that inflation is moderating. In May, India’s CPI rose by 4.3% year-on-year (YoY), which was the lowest print this year. In EMEA, Saudi Arabia gained 3.4% after announcing a new cut to oil production that will take effect in July. In Latin America, Brazil increased 16.0% after the Central Bank of Brazil left the benchmark SELIC rate unchanged. Brazil also announced a $76bn package to support agricultural producers.
Despite positive absolute performance in all sectors during the month, there were some single stock detractors to performance. The Underlying Fund’s precious metals-related exposure dragged on performance during the month. Endeavour Mining and Gold Fields fell 10.0% and 8.5%, respectively, after a strong showing so far this year. Both companies were negatively impacted by the price of gold falling during the month. In the Energy sector, Petrobras declined 7.3% after announcing a cut to gasoline prices at the end of June.
The Underlying Fund’s overweight to China and the outperformance of its holdings against the MSCI Emerging Markets Index (8.0% versus 4.0%) led to 136bps of outperformance relative to the Index.
Li Auto, Country Garden Services, and Baidu gained 19.9%, 15.4%, and 11.2%, respectively. Li Auto’s monthly sales continue to set new records, which is leading to a stronger position amongst Chinese Electric Vehicle (EV) manufacturers. Country Garden Services benefitted after sentiment in property-related stocks improved due to growing expectations that policymakers in China may introduce new property market support measures.
Baidu continues to further its first-mover advantage in China’s generative AI industry by improving inferencing performance and optimising costs around its large language models. The Underlying Fund’s overweight to the Materials sector (8.7% versus 1.7%), combined with Redwheel’s stock selection in the industry led to 112bps of outperformance relative to the MSCI Emerging Markets Index.
Ivanhoe Mines and Hoa Phat Group gained 25.0% and 22.8%, respectively. Ivanhoe Mines rose after reporting that the KamoaKakula Copper Complex achieved a new monthly production record during May. In Vietnam, Hoa Phat Group rose after reporting stronger than expected sales volumes this year.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/64b7544129495fa6b3f48080_CC-Redwheel-Global-Emerging-Markets-Fund-Monthly-Report-June-2023.pdfMay, 2023
In May, Emerging Markets were impacted by falling commodity prices on the back of weaker demand as Chinese and Western manufacturing activity slowed.
The CC Redwheel Global Emerging Markets Fund returned 0.87% in AUD and the MSCI Emerging Markets Index Net AUD rose 0.40%. During the month, China declined -8.4% after the country’s Manufacturing Purchasing Managers’ Index (PMI) declined to 48.8, which was the lowest activity since December 2022. Despite mixed signals over the pace of the economic recovery, Redwheel has seen encouraging trends in company results from Q1 2023 and expects the remainder of the year could exhibit growth trends for companies.
Taiwan gained 7.3% after announcing that exports fell at a slower pace in April compared to March, which is a sign that global demand may be bottoming. South Korea rose 4.8% after the government unveiled a five-year plan to support growth in key economic sectors, such as semiconductors and battery technologies. India increased 2.9% after government data revealed that inflation continues to moderate in the country.
The CPI print for April was 4.7%, which was an 18-month low. Saudi Arabia fell -3.0% after the Saudi Central Bank raised their repo and reverse repo rates by 25 basis points (bps) during the May meeting. In Latin America, Brazil gained 0.6% after the Brazil Central Bank left the benchmark Selic rate unchanged at 13.75%.
File:April, 2023
In April, Emerging Markets declined amidst heightened geopolitical rhetoric between the United States and China. This impacted sentiment and dragged down equities in China, Taiwan and other countries across the investment universe. The CC Redwheel Global Emerging Markets Fund fell -4.04% in AUD and the MSCI Emerging Markets Index Net AUD returned 0.20%.
During April, China declined -5.2% on the back of rumours that the Biden administration plans to restrict future foreign investments in certain areas of China’s economy such as parts of the technology sector. In addition, China’s manufacturing activity shrank in April and led to concerns over the pace of the economic recovery. Taiwan fell -4.2% after preliminary data pointed to GDP declining -3.0% year-over-year (YoY) during Q123. South Korea decreased -0.9% after announcing that exports dropped -13.6% YoY in March, which marked the sixth consecutive month of declines. India rose 4.2% after the Reserve Bank of India decided to keep the benchmark interest rate unchanged at 6.5%. -In Latin America, Brazil gained 3.4% after consumer prices rose 0.71% month-over-month (MoM) in March.
Inflation in Brazil grew at a slower rate compared to February and points to the ongoing disinflation trend in the country. In Europe, the Middle East and Africa (EMEA), Saudi Arabia increased 6.0% after the kingdom announced four new special economic zones that will help diversify the economy.
File:March, 2023
In March, Emerging Market equities rallied after decisive actions by global central banks alleviated pressures on the banking system and led to improved sentiment across equity markets. The CC Redwheel Global Emerging Markets Fund gained 3.39% in AUD and the MSCI Emerging Markets Index Net AUD increased 3.74%. China increased 4.5% after reopening their border to foreign visitors on 15 March 2023. In addition, the People's Bank of China reduced the reserve requirement ratio by 25 basis points to support the economic recovery as the country reopens. Taiwan rose 3.0% after reporting that February CPI had decreased to 2.4%. South Korea gained 4.8% after Japan lifted restrictions on certain semiconductor material exports to South Korea. This signals that trade relations between these two countries may be improving. India increased 1.2% after reporting that industrial production grew by 5.2 year-over-year (YoY) in January, which was higher than the prior month. In Saudi Arabia, which rose 5.7%, Saudi Aramco announced plans to raise the price of crude oil shipments to Europe and Asia in April. In Latin America, Brazil fell -0.3% after the Brazil Central Bank left the Selic interest rate unchanged. In China, Alibaba and Kuaishou Technology gained 13.0% and 15.1%, respectively. During the month, Alibaba announced that it would restructure into six business groups. Redwheel anticipates that this will be beneficial for operational efficiencies and lead to a higher valuation. Kuaishou Technology rose after reporting robust top-line growth and improving operating metrics, such as traffic and daily active users, during Q4 2022. The Underlying Fund’s exposure to gold miners performed well during the month amidst an increase in the price of gold. Gold Fields and Endeavour Mining gained 49.8% and 20.0%, respectively.
File:February, 2023
In February, Emerging Market equities went through a correction after a strong start to the year. During the month, the CC Redwheel Global Emerging Markets Fund fell -4.65% in AUD and the MSCI Emerging Markets Index Net AUD declined -2.28%. China fell -10.4% on the back of renewed geopolitical tensions. Following the surveillance balloon incident, the United States added six Chinese entities to an export blacklist over concerns that they are supporting China’s military development. Taiwan and South Korea decreased -1.1% and -7.0%, respectively, after January data revealed that exports continue to decline at an accelerated rate. India declined -4.6% after the Reserve Bank of India increased the benchmark interest rate by 25 basis points to 6.5%. In Eastern Europe, Middle East, and Africa (EEMEA), South Africa and Saudi Arabia fell -7.7% and -7.4%, respectively. South Africa reported that manufacturing production fell -4.7% year-over-year (YoY) in December amid a worsening electricity supply crisis caused by mismanagement of the state electric utility, ESCOM. The Saudi Central Bank raised rates by 25 basis points to 5.25%. In Latin America, Brazil declined -9.2% after reporting that industrial production fell by -1.3% YoY in December and in the midst of potential policy changes by the new President Lula. In China, Lizhong Sitong gained 17.8% after Tesla announced their long-term cost reduction roadmap, which calls for wider usage of single-piece casting components. Lizhong Sitong is a key supplier of these parts. Greek bank, Eurobank increased 14.3% after benefitting from a substantial pick up in loan growth. The team anticipate that this trend will continue. In the United Arab Emirates, Aldar Properties rose 7.8% after reporting robust operating KPIs and real estate sales that reached record highs.
File:January, 2023
In January, Emerging Markets equities rallied on the back of an improved economic outlook and falling inflation. The CC Redwheel Global Emerging Markets Fund gained 5.87% in AUD, outperforming the index by 2.03%. The MSCI Emerging Markets Index Net AUD, increased 3.84%. China increased +11.8% as the country’s re-opening continued to exceed expectations. In addition, the People's Bank of China (PBOC) introduced a dynamic adjustment mechanism for first time home buyers’ mortgage rates in an effort to boost the local property market.
Taiwan rose +12.7% on the back of announcing stimulus plans that would grant one-off tax rebates of TWD 6,000 to each citizen later in the year. South Korea gained +12.4% after announcing tax cuts for technology and semiconductor companies that invest domestically. India declined -3.0% after the government shared its plan to reduce subsidies on food and fertiliser in a bid to reduce the country’s fiscal deficit.
In EEMEA, South Africa and Saudi Arabia increased +4.6% and +2.2%, respectively. During the month, South Africa raised their benchmark interest rate by 25 basis points. In Saudi Arabia, the kingdom disclosed that it plans on investing up to one trillion riyals into cleaner energy, such as hydrogen. In Latin America, Brazil gained +6.9% as the rate of inflation continued to decelerate in the country.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/63ec156908e3d32cc37fd2df_CC-Redwheel-Global-Emerging-Markets-Fund-Monthly-Report-January-2023.pdfDecember, 2022
In December 2022, Emerging Markets declined as central banks around the world continued to be hawkish regarding monetary policy. During the month, the CC Redwheel Global Emerging Markets Fund fell -1.89% in AUD while the MSCI Emerging Markets Index Net AUD declined -2.63%. In Asia, China rose 5.1% as the government continued easing COVID-19 restrictions. During the month, China removed testing requirements for public venues and revised quarantine guidance for infected individuals. South Korea and Taiwan fell -5.2% and -5.5%, respectively, amidst a continued decline in exports. India declined -5.5% after the Reserve Bank of India raised rates 35 bps to 6.25% to tame high inflation. In Europe, the Middle East and Africa (EMEA), Saudi Arabia fell -3.3% amidst volatility in the price of oil. South Africa fell -4.3% after President Cyril Ramaphosa faced a potential impeachment. However, he was re-elected for a second term after overcoming the impeachment inquiry. In Latin America, Brazil decreased -3.0% after President Lula announced Fernando Haddad will serve as the country’s next finance minister. Positioning in China was a positive contributor to performance in December. Internet-related companies, such as Kuaishou Technology, Tencent, and Baidu were up 25.5%, 16.3% and 10.0%, respectively. Internet-related names continue to be beneficiaries of policy normalisation amidst China’s economic re-opening. Additionally, Akeso increased 28.4% on the back of granting exclusive rights to Summit Therapeutics to develop ivonescimab, which is a tumour-inhibiting antibody drug. There were also single stock contributors. In Saudi Arabia, Saudi Basic Industries Corporation (SABIC) increased 5.0% after signing a memorandum of understanding with Saudi Aramco and Sinopec to assess developing a petrochemical facility in Yanbu. We anticipate that the price of petrochemicals will increase on the back of robust demand due to the re-opening in China.
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In November 2022, Emerging Markets rallied on the back of signs of a re-opening in China. During the month, the CC Redwheel Global Emerging Markets Fund increased 11.22% in AUD and the MSCI Emerging Markets Index Net AUD gained 9.64%. In Asia, China rose 29.7% after the country began to partially ease COVID-19 restrictions following protests.
The Chinese government also unveiled a new package aimed at bolstering liquidity in the property industry. Taiwan increased 22.2% after the New Taiwan dollar strengthened against the US dollar. South Korea gained 14.9% after the government announced new policies to boost exports. India gained 5.2% on the back of industrial production rising by 3.1% year-over-year. In Europe, the Middle East and Africa (EMEA), Saudi Arabia fell -7.2% as the Saudi Central Bank hiked repo and reverse repo rates by 75 bps to 4.5% and 4%, respectively.
In Latin America, Brazil fell -2.9% as uncertainty over Lula’s selection for finance minister negatively impacted sentiment. Mexico gained 6.0% after announcing that CPI rose 8.4% in October. The lower month over month CPI announcement led to optimism that inflation peaked in the third quarter.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/639bb89dce9209e3cd448ab6_CC-Redwheel-Global-Emerging-Markets-Fund-Monthly-Report-November-2022.pdfOctober, 2022
In October 2022, most emerging market countries performed well as expectations grew around central banks pivoting on rate hikes in the coming months. However, emerging markets fell on the back of poor performance in China. In October, the CC Redwheel Global Emerging Markets Fund fell by -4.11% in AUD, and the MSCI Emerging Markets Index Net AUD fell by -2.57%.
In Asia, China fell by -16.8% on the back of continued Covid lockdowns and the conclusion of the 20th National Congress Party. During the event, Xi Jinping’s third five-year term was confirmed and power was consolidated to align with Xi. On October 7th, the US Department of Commerce announced new restrictions on advanced semiconductor and semiconductor manufacturing equipment exports to China. During the month, several Chinese cities launched efforts to ramp-up support for the property sector by lowering rates for first-time home buyers to around 4%. In Taiwan, markets fell by -5.1% on the back of exports decreasing by -5.3% YoY in September. In Europe, the Middle East, and Africa (EMEA), the United Arab Emirates and Saudi Arabia rose by +4.4% and +3.2%, respectively. The markets continue to be supported by robust oil prices and a recovery in tourism. In Latin America, Brazil increased by +8.6%. The presidential runoff concluded on October 30th, with Lula winning by a narrow margin after securing 50.9% of the vote. Mexico rose by +13.9% as the country reported strong industrial production growth at +3.9% YoY. Brazil contributed to the Fund’s performance following the re-election of President Lula.
Rumo and Eletrobras rose by +23.5% and +19.5%, respectively. Rumo gained on the back of reporting increased agricultural and industrial related transportation volumes and better pricing. Eletrobras increased after hiring advisors for the potential Novo Mercado migration and advances in its restructuring process. In Ghana, Kosmos Energy rose +25.5% due to a robust oil price. There were single stock contributors to performance: in Mexico, CEMEX rose by +12.6% as cement prices remain strong; in Greece, Eurobank was up +17.9% as the bank delivered better than expected numbers with loan growth picking up substantially.
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In September 2022, all major markets were down, including emerging markets, due to persistent inflation and growth concerns. The MSCI Emerging Markets Index Net AUD fell -5.87% while the CC Redwheel Global Emerging Markets Fund returned -7.78%.
In Asia, China’s September PMI reports were mixed, reflecting a divergence across sectors as policy support boosted domestic industrial and construction activity, while Covid lockdowns were a drag on service activity. India’s 2Q GDP was robust at 13.5% YoY as high contact services posted strong gains amidst the economic re-opening. However, growth in the manufacturing sector was weak due to lower-than-expected corporate profitability. In Europe, Middle East, and Africa (EMEA), South Africa’s economy contracted by 0.7% in Q2 compared to Q1 2022.
Net exports fell sharply but domestic demand remained positive. Saudi Arabia was down -7.5% as Crude oil prices fell by circa 8% during the month. In Brazil, the second-round dispute between former president Luiz Inácio Lula da Silva and incumbent Jair Bolsonaro has been confirmed. However, the gap between the two main contenders was narrower than early polls suggested. Looking ahead, it will be important to see if Bolsonaro will gain momentum in coming polls.
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In August, all major markets were down except for emerging markets. The CC Redwheel Global Emerging Markets Fund in AUD was up 3.01%, outperforming the MSCI Emerging Markets Index Net AUD by 0.80%. In Asia, the China Caixin services PMI picked up further in August, rising to 55.5%, the fastest pace of expansion since April 2021. Mainland Chinese exports unexpectedly climbed further, rising by 18.0% year-over-year, as global demand stayed elevated, and some supply chain bottlenecks eased. Import growth edged up to 2.3%, but the overall pace remained muted due in part to domestic headwinds from Covid-19 and a weak property sector. In India, the RBI raised the repo rate by 50 bps to 5.4%, highlighting strong growth impulses and high inflation. In Europe, Middle East, and Africa (EMEA), South Africa was weighed down by falling precious metal prices while Eastern Europe continued to struggle amidst the energy crisis. In Latin America, Brazil’s focus was on the election with the gap between the two leading candidates , Lula and Bolsonaro narrowing in the polls. Brazil was a significant contributor to the Fund’s performance. Hapvida rose 18.5% as the company is on track to turn around recently acquired assets by capturing synergies while also accelerating organic growth. Petrobras was up as the company continues to pay strong dividends. Rumo rose 15.9% as the company is expected to benefit from a strong corn harvest and better pricing conditions. India was also a contributor to the Funds’ performance. ICICI Bank, Indigo and Maruti were all up during the month. There were also single stock contributors to performance. Saudi Arabian Mining Company rose on the back of higher prices for fertilizer and strong volumes while Chinese E-commerce company, Pinduoduo, was up 45.4% on the back of robust results. South Africa was a detractor to the Fund’s performance. Gold Fields and MTN were down -12.1% and -12.8%, respectively. Gold Fields fell on the back of a weaker gold price while MTN fell despite the solid sales growth outlook. China was also a detractor to performance. Ningbo Ronbay Technology, Kuaishou Technology and Shenzhen Senior Technology fell -26.4%, -13.0% and -20.9%, respectively. Going forward, Redwheel expects a favourable policy environment in China as the government prioritises economic growth.
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Emerging markets fell marginally in July amid rising recessionary expectations. The CC Redwheel Emerging Markets Equity Fund returned -2.24% in AUD, while the MSCI Emerging Markets Index Net AUD was down -1.70%.
In Asia, China was down -9.5% as Mainland China’s NBS manufacturing PMI fell to 49.0%, back into contractionary territory, partly due to a slowdown in domestic and global demand. Additionally, regulatory fines on internet companies and halted mortgage payments by Chinese homebuyers hampered sentiment. India was up 9.3% as the country benefitted from new measures introduced to augment foreign investment inflows and stem the depreciation of the Rupee. Additionally, India’s trade deficit widened to record levels with core exports slowing for a second month on a sequential basis and imports rising across the board.
In Europe, Middle East, and Africa (EMEA), Saudi Arabia rose 5.9% as the Saudi economy grew at 11.8% year-on-year in Q2 and Saudi announced fiscal stimulus packages to aid low-income citizens. In Latin America (Latam), Brazil was up 5.5% as inflation came in line with expectations and tax cuts adopted by the government helped lower short-term prices. Moreover, the unemployment rate reached the lowest level since 2015, standing at 9.3% in June. Brazil was a contributor to the Fund’s performance. MercadoLibre was up 27.7% as the company remains well positioned to capture the secular growth opportunities in both ecommerce and fintech sectors in Latin America .
MercadoLibre recently reported better than expected results as higher margins led to strong cash flow generation. Hapvida was up 13.3% as the company continued to benefit from cost-leadership competitive advantages amid a harsher macro backdrop. India was an absolute contributor to the Fund’s performance. ICICI Bank rose 15.3% as the bank reported strong earnings growth on the account of stable net interest margins (NIMs), operating profits and lower-than-expected credit costs. IndiGo also rose on the back of a robust results despite the challenging environment. IndiGo remains well positioned due to its relatively lean cost structure and superior execution capabilities in a high-growth industry. The Fund’s China internet exposure was a detractor to performance. Pinduoduo, Kuaishou Technology and Meituan declined -20.7%, -9.6% and -9.2%, respectively, on the back of regulatory overhang. Redwheel remains constructive on the sector following a more supportive regulatory environment and a robust growth outlook
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/62f44c61ed318a45df18994b_CC-Redwheel-Global-Emerging-Markets-Fund-Monthly-Report-July-2022.pdfMay, 2022
Emerging markets recovered in the latter half of May to end the month slightly down. The MSCI Emerging Markets Index Net AUD fell -0.50% while the CC Redwheel Global Emerging Markets Fund was up 1.23% in AUD. In Asia, China was up 1.2% as Covid-19 cases declined and mobility restrictions are being relaxed. The government announced multiple measures, including expanding tax rebates, deferring repayments and launching new investment projects, in response to downward pressure on the economy. Taiwan rose 3.6% as April’s industrial production report beat expectations mainly due to tech -related manufacturing. India was down -5.8% as headline inflation increased to 7.8% year on year, led by price pressures across the board. India’s central bank raised interest rates for first time since 2018. All markets in the Middle East and North Africa (MENA) region fell, despite strong oil prices, on rising inflation fears and weaker growth prospects globally. Latin America benefitted from strengthening currencies, positive sentiment driven by macro-economic factors and favourable changes on the political front. Within Latin America, Chile was up 18.4% as the constitutional convention ended the new constitution draft, reducing the political overhang that was seen in the country for the last two years.
China was a significant contributor to the Fund’s performance as lockdowns eased , growth support measures continued, and regulatory risk lessened. As a result, Pinduoduo, QuakeSafe and Baidu rose 17.2%, 44.4% and 12.9%, respectively, in addition to other portfolio holdings in China. In Chile, SQM rose 43.9% as the company posted robust earnings driven by strong commodity prices and timely delivered expansions. The company should continue to benefit from robust demand for lithium along with further expansions.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/62aa9c8e75992f0398af04fb_CC-Redwheel-Global-Emerging-Markets-Fund-Monthly-Report-May-2022.pdfApril, 2022
Emerging market equities fell in April on the back of ongoing geopolitical tensions and rising fuel , energy and commodity prices, which resulted in record high inflation levels in most of the world. The MSCI Emerging Markets Index Net AUD fell -0.21% while the CC Redwheel Global Emerging Markets Fund was down -3.63% in AUD. In Asia, China fell -4.1% as services PMI slumped to the lowest level since February 2020, with the new orders PMI falling to a 24-month low. The rapid increase in new Covid-19 cases and the stepping-up of containment measures dampened consumption sentiment and added to transportation disruptions. India was down -1.7% as March CPI rose to 7% while industrial production continued to improve. Taiwan and Korea were down as the continued tech sell-off dealt a blow to their respective heavyweight sectors: semiconductors and tech hardware. In Eastern Europe, Middle East, and Africa (EEMEA), South Africa was down -12.8% due to a weakening rand. Elsewhere, Saudi Arabia rose 5.9% as the country continued to benefit from higher energy prices. In Latin America, Brazil fell -13.7% on the back of high inflation. The main drivers of Brazil’s inflation were transportation and food prices.
Brazil was a detractor to the Fund’s performance. Hapvida fell -29.0% as the company posted weaker than expected 4Q21 results which were impacted by the merger with Intermedica and Covid-19. Mercado Libre fell -18.1% on the back of reopening headwinds and a weakening low-end consumer. Bradesco also fell -14.5% on the back macro uncertainties. The Fund’s materials exposure corrected following a strong performance year to date. First Quantum was down -16.8% while SQM fell -14.0%. Redwheel are positive on copper and lithium as decarbonisation-driven demand and cyclical growth remains robust while supply continues to be constrained
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Emerging market equities fell in March mainly due to the ongoing conflict between Russia and Ukraine. The MSCI Emerging Markets Index Net AUD fell -5.55% while the CC Redwheel Global Emerging Markets Fund was down -6.69% in AUD. In Asia, China was down -8.0% as both the manufacturing and services PMI indices fell into the contractionary zone in March, due to a spike of Covid-19 cases affecting both production and demand. India was up 3.7% as state elections voting was largely in favour of the ruling BJP, suggesting policy continuity going forward.
Taiwan and South Korea fell on the back of supply chain disruptions. In Europe, The Middle East & Africa (EMEA), Russia was removed from the index on the 9th of March following the invasion of Ukraine. South Africa was up 7.8% on the back of a stronger rand as terms of trade hit record highs in early March. Saudi Arabia benefitted as energy prices rose significantly due to the potential US and European embargo on Russian energy exports. In Latin America, Brazil was up 14.9% on increasing commodity prices.
The Fund’s materials exposure was a significant contributor to performance. First Quantum rose 18.3% as the copper price increased on the back of decarbonization-driven demand and cyclical growth as the world diversifies its dependence on Russian metals and energy. Lithium also benefited from this trend and Chilean miner, SQM, was up 29.4%. Additionally, Gold Fields rose 11.2% as the gold price increased due to heightened geopolitical tensions and inflation concerns. In Saudi Arabia, Maaden was up 25.7% as strong market fundamentals in the fertilizer and aluminum segments were supported by healthy demand and tight supply. In Brazil, Bradesco was up 18.7% on the back of high-interest rates and robust loan growth.
China was a detractor to the Fund’s performance. Chinese internet companies led the fall amid weakening sentiment over sustained regulatory pressure on the sector. Around mid-March, China’s state council signaled efforts to keep its stock market stable and policy support to improve growth. Red wheel expects fundamentals to improve throughout the rest of the year.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/62575e4dd64eabf4a8d3dabe_CC-Redwheel-Global-Emerging-Markets-Fund-Monthly-Report-March-2022.pdfJanuary, 2022
Emerging market equities outperformed developed market equities in January. The MSCI Emerging Markets Index Net AUD rose 1.24% while the CC RWC Global Emerging Markets Fund was down -2.02% in AUD. In Asia, China fell -2.9% due to the persistence of stiff headwinds on growth, despite promising signs of a potential inflection to prior credit tightening. South Korea tumbled -10.2%. However, growth accelerated as private consumption and construction demand rebounded. India released a new budget, focusing on growth to support the nascent economic recovery. Brent crude oil surged above US$90 for the first time in seven years over Russia-Ukraine tensions, leading to a notable outperformance of all major oil producers in Europe, Middle East & Africa (EMEA). However, Russia declined -8.7% on the back of geopolitical concerns. In Latin America, Brazil outperformed after Luiz Inácio Lula da Silva, the leader in polls for the presidential election in October, again courted the centrist electorate with a suggestion that his running mate could be Geraldo Alckmin, and amid an increase in iron ore prices.
Brazil was a contributor to the Fund’s performance. In the healthcare sector, Hapvida and Intermedica rose 28.4% and 22.6%, respectively. Hapvida released a material fact with a summary of the main steps for the closing of the business combination with Intermedica. The combined company could lead the consolidation process in the Brazilian healthcare sector with potential for synergies. Also, in Brazil, Bradesco was up 23.5% as the bank is well placed to benefit from higher margins on the back of rate hikes. There were single stock contributors to the fund’s performance. In Vietnam, Vincom Retail increased 16.8% as the company continued to benefit from a recovery in mobility following the Omicron variant. Vincom’s Q4 retail sales rose 28% q-o-q while footfall in malls witnessed a robust rebound. In Chile, SQM continued its robust performance as the lithium price increased substantially on the back of continued EV demand.
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Emerging markets ended the year on a negative note amid concerns surrounding the Omicron variant. The MSCI Emerging Markets Index Net AUD fell -0.65% while the CC RWC Global Emerging Markets Fund was down -3.08% in AUD. In Asia, China fell yet again with the continued liquidity crunch in the property market. In Europe, Middle East & Africa (EMEA), Saudi Arabia rose 5.1% on the back of higher energy prices, while Russia fell -2.3% due to rising geopolitical uncertainty over the Ukraine conflict. Elsewhere, South Africa was up 4.6% as curfews and other restrictions were lifted. In Latin America, the economic accommodation in Brazil persisted, with an added dose of political uncertainty stepping into the 2022 election year. Mexico was up 13.1% as investors welcomed a higher-than-anticipated 50 bps rate hike aimed at combating the country's highest core inflation in 20 years.
The Fund’s oil exposure was a positive contributor to performance. Tullow Oil was up +14.0% with a strong recovery in the oil price as the Omicron variant proved to be mild. There were single stock contributors to the Fund’s performance. In Zambia, First Quantum Minerals was up 13.0% as the copper price rose during the month. In Taiwan, MediaTek increased 18.4% as the revenue growth outlook for the next few years was better than expected . Additionally, the company officially launched the Dimensity 9000 chipset which is expected to have a better benchmark performance vs. all the prior flagship 5G SoC solutions. In Mexico, Cemex?rose 10.2% as it announced its divestment of its operations in Costa Rica and El Salvador for a total of US$335m. This is positive for the company as it will help rebalance their portfolio toward higher growth assets. In China, Luxshare rose 24.0% on the back of significant new orders and demand for Apple products
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/61e60b596366aa36a9a2a1a7_CC-RWC-Global-Emerging-Markets-Fund-Monthly-Report-December-2021.pdfNovember, 2021
Emerging markets were up during the month of November. The MSCI Emerging Markets Index Net AUD rose 1.61% while the CC RWC Global Emerging Markets Fund was up 1.53%. In Asia, China fell -6.0% (-0.4% in AUD terms), reflecting weakness in domestic demand and a slowdown in industrial production amid curbs on energy consumption. Taiwan rose 2.2% (8.3% in AUD terms), driven by semiconductors and foundries as the Semiconductor (SOX) index recorded all-time highs in November. India was weighed down by investor concerns on the potential for long-term structural reforms after the government repealed three contentious farm laws aimed at agricultural market deregulation. In Europe, Middle East & Africa (EMEA), Russia fell -10.9% (-5.6% in AUD terms) on the back of a drop in energy prices, while South Africa was down -5.1% (0.6% in AUD terms) due to widespread travel restrictions from other nations on account of community transmission of the Omicron variant. In Latin America, Brazil fell -1.5% (4.4% in AUD terms) as the domestic recovery continues to be harmed by increasing inflation.
There were single stock contributors to the Fund’s performance. In South Africa, Gold Fields was up 22.0% (29.3% in AUD terms) during the month as the company reported solid Q3 2021 operating results. Additionally, Gold Fields pledged to reduce its carbon emissions by 30% on a net basis and by 50% on an absolute basis by 2030. In Chile, SQM rose 14.0% (20.8% in AUD terms) during the month as EV demand remained robust throughout November which supported the lithium price. With both lithium expansions further progressing and expected by year -end 2022, and positive tailwinds in non-lithium related divisions anticipated to continue over the next quarters, we believe SQM is well positioned and on a path to growth. In China, Yuan LongPing was up 15.0% (+21.9% in AUD terms) as China has created a path for seed makers to get approval for genetically modified crops which will potentially benefit the company’s profitability going forward
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Emerging market equities fell in line with developed markets during the month of September. Meanwhile, Covid-19 vaccination rates have increased across the majority of emerging markets. The MSCI Emerging Markets Index Net AUD fell -2.84% while the CC RWC Global Emerging Markets Fund was down -4.52%. In China, electricity shortages, concerns of Evergrande defaulting and ongoing regulatory risk kept Chinese equity markets under pressure. However, export growth accelerated to 25.6% y-o-y, despite the spread of the Delta variant as global demand for goods remained resilient. India was up 0.6% as PMIs moved into expansionary territory driven by government capex and exports. South Korea fell -6.6% as industrial production was down 0.7% m-o-m while PMIs fell sharply by 1.8 bps to 51.2, due to a decline in the output index. In EMEA, Russia and Saudi Arabia were up on rising energy prices. Brent Crude oil rose above US$80 per barrel in September owing to a large supply-demand deficit as global demand continues to recover faster than expected. Additionally, the improvement in Russian fiscal balances should reduce the risks of further tax hikes in 2022-2023. South Africa fell -4.8% despite activity rebounding in recent weeks. In Latin America, Brazil declined -13.0% on the back of a convoluted political scenario, double-digit inflation and risks stemming from China impacting commodities.
Russia was a positive contributor to the Fund’s performance. Yandex and Sberbank rose 3.6% and 5.5%, respectively. The former was up due to a significant strengthening of its ecosystem while the latter rose as mortgage demand in Russia remained robust. The Fund’s energy exposure was a positive contributor to performance. Uranium miner, Kazatomprom, was up 25.7% during the month as the uranium price rose sharply in September. The demand outlook has improved, largely focused on the role that nuclear energy could play in the push for clean energy. The Fund’s oil exposure was also a contributor to performance.
Rosneft Oil and Tullow Oil were up +16.2% and +12.7%, respectively, as the Brent Crude Oil price rose above US$80 per barrel during the month for the first time since September 2018. Within the portfolio’s New Auto Tech thematic, SQM continued its strong performance on the back of robust demand for electric vehicles. India was an absolute contributor to performance. Reliance and IndiGo rose 9.8% and 4.4%, respectively. Reliance was up due to strong festive season demand which is expected to translate through to increased profitability while Indigo rose as domestic air traffic continues to improve
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After two months of underperformance, emerging markets outperformed their developed market counterparts in August 2021. The MSCI Emerging Markets Index Net AUD rose 3.21% while the CC RWC Global Emerging Markets Fund was up 2.55%. In Asia, Covid-19 cases remain high, however there is growing evidence of vaccine effectiveness across the world. China was flat over the month as manufacturing PMI declined to a 15-month low. However, exports remain robust with 19.3% y-o-y growth, in line with expectations, as higher vaccination rates continue to support the global demand recovery. Taiwan rose 4.5% despite a slowdown in new orders. India was up 10.9% as 1Q FY22 GDP grew 20.1% y-o-y. In EMEA, Russia rose 3.5% as the growth in the second quarter reached 10.3% compared to the same period of 2020. In South Africa, President Ramaphosa reshuffled his cabinet, including a surprise change in the Finance Ministry. Additionally, the unemployment rate in South Africa hit a new high of 34.2% in Q2. In Latin America, the Central Bank of Chile hiked its policy rate by 75 bps to 1.50%, accelerating the pace of tightening from the previous 25 bps rate increase in July. Brazil fell -2.3% due to a decline in commodity prices.
India was a significant contributor to the Fund’s performance. Tata Consultancy and Hindustan Unilever were up 21.8% and 19.0%, respectively. The former posted consistent organic revenue growth while the latter benefited from a recovery in mobility. Reliance Industries rose 13.1% as the company is set to release India’s cheapest smartphone in September. China was also a contributor to the Fund’s performance. Sangfor Technology was up 12.4% due to solid growth in its cloud systems. Additionally, positive cybersecurity policies aided investor sentiment. Songcheng rose 20.5% as 1H21 earnings beat expectations due to improved cost control and increased investment income. Meituan was up 15.7% as 2Q21 total revenue was up 77% y-o-y. The food delivery, in-store, hotel and travel businesses accelerated their recovery and generated record EBITDA, partly offsetting the higher losses from new initiatives. The Fund’s New Auto theme performed well. SQM and Geely Automobile rose 9.7% and 8.2%, respectively, as demand for electric vehicles remains robust
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/613fde68a4a18ecc7c861c86_RWCEMF_202108.pdfJuly, 2021
Emerging market equities fell significantly in July as they were dragged down by a sharp sell -off in China’s technology sector. The MSCI Emerging Markets Index Net AUD fell -4.74% while the CC RWC Global Emerging Markets Fund was down -4.12%. In parts of East Asia, high daily Covid-19 infections and fatalities have prompted some countries to re-impose stricter lockdowns. China fell -13.8% due to market concerns about regulatory risks in new-economy sectors and variable interest entity (VIE) companies. South Korea was down -5.7% as Q2 2021 real GDP growth was below expectations due to supply bottlenecks affecting manufacturing and export growth. India rose 0.9% as mobility began to normalise and the momentum in core inflation slowed. In the Europe, the Middle East and Africa (EMEA) region, South Africa fell -1.9% as mobility decreased due to a culmination of restrictions from the Covid-19 Delta variant as well as the knock-on effects from the riots. In Russia, the CBR hiked rates by 100 bps to 6.5%. In Latin America, Brazil was down -6.1% due to concerns around the spread of the Delta variant and its impact on the global recovery.
South Africa was a contributor to the Fund’s performance. Gold Fields and Sibanye Stillwater rose 10.3% and 4.4%, respectively, due to a recovery in precious metal and PGM prices. While China was an absolute detractor, there were a few single stock contributors to performance during the month. Ginlong Technologies rose +73.4% on the back of robust growth in distributed PV installations. Yuan Longping was up +24.6% following robust results while Wingtech Technology rose +12.6%. In South Korea, Delivery Hero was up +13.4% as the company continues to experience fast growth in its food delivery business while also seeing a rapid adoption of its quick commerce platform for grocery delivery.
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Emerging markets equities rose in June. The prospect of the US Fed tapering has kept emerging markets under pressure, while high numbers of Covid-19 cases continue to restrict the recovery in some emerging markets such as South Africa. However, U.S. president Biden announced an infrastructure plan which will further support the global economic recovery. The MSCI Emerging Markets Index Net AUD rose 4.06% while the CC RWC Global Emerging Markets Fund was up 3.34% (both index and Fund returns are shown from 31 May to 30 June due to an U.K. public holiday on 31 May).
In Asia, China rose 1.8% as the May inflation report showed a lower-than-expected CPI inflation at 1.3%, while PPI inflation accelerated further to 9.0%. South Korea rose 2.3% as the Bank of Korea revised up 1Q21 real GDP growth to 7.1% quarter on quarter, primarily driven by strong growth in manufacturing output. India was up 0.1% as the progressive easing of mobility restrictions continued with new Covid-19 cases fell sharply. In the Europe, the Middle East and Africa (EMEA) region, Russia was up 4.2% on the back of rising oil prices. South Africa fell -6.1% as the rand weakened against the USD and there was a resurgence of Covid-19 cases. However, rising metal prices have boosted terms of trade, exports and tax receipts, providing relief for the macroeconomic outlook for South Africa. In Latin America, Brazil was up 5.5% as GDP grew 4.9% quarter on quarter, with strong inventory accumulation boosting economic performance.
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Emerging market equities outperformed developed markets in May due to a positive global economic outlook accompanied by USD weakness. The MSCI Emerging Markets Index Net AUD rose 1.34% while the CC RWC Global Emerging Markets Fund was down -0.64% (both index and Fund returns are shown to 30 May due to an U.K. public holiday on 31 May). In Asia, China fell -0.8% despite the Chinese government announcing policy measures to address the decline in population growth, the spike in commodity prices and rapid appreciation in the CNY. Taiwan fell -3.0% due to concerns from rising Covid-19 cases and water supply shortage leading to power outages.
India was up 7.8% as Covid-19 cases peaked with new cases trending down. In the Europe, the Middle East and Africa (EMEA) region, South Africa rose 5.4%, boosted by commodity prices while the rand strengthened c. 5.5%. Russia was up 9.6% as Brent Crude oil rose to over US$68 per barrel. In Latin America, Brazil rose 9.4% on the back of global tailwinds, such as strong commodities and a positive global growth outlook.
Brazil was a contributor to the Fund’s performance. Bradesco rose 15.6% as earnings beat expectations due to lower provisions and good cost control. Petrobras was up 20.4% as the company reported strong results with positive free cash flow generation. The company’s strategy did not change materially after the alteration of the CEO . This has proven positive for Petrobras. Additionally, Vale and Rumo rose 12.3% and 8.4%, respectively. South Africa was also a contributor to the Fund’s performance. Gold Fields rose 29.1% due to the rise in the gold price while FirstRand was up 16.4% as earnings continue to recover. There were single stock contributors to performance. Sberbank and Hoa Phat Group rose +2.5% and 15.5% respectively. Sberbank was up as management upgraded forward guidance and results were well above consensus estimates while the latter rose on the back of strong monthly steel sales.
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Emerging Market equities ended the year strongly as the US announced a further US$900bn of Covid-19 related stimulus. The US dollar weakened significantly while economic activity in most developing economies continued to recover. The MSCI Emerging Markets Index NR in AUD rose 2.51% while the CC RWC Global Emerging Markets Fund was up 7.36% in the month of December. North Asian markets performed well. South Korea rose 16.6% as exports were up 12.6% year-on-year. China was up 2.7% as purchasing managers indices (PMIs) remained robust, while exports growth was strong. Taiwan also rose 10.5% as the country’s growing technology sector continued to drive economic growth. India was up 10.2% as consumer spending improved and activity indicators were robust , painting a positive outlook for the economy heading into 2021.
In EEMEA, South Africa rose 9.6% while Russia was up 10.5% as Brent crude oil was up a further 8.2% to over US$51.80 per barrel. In Latin America, Brazil was up 13.6% as PMIs remain in expansionary territory while the Brazilian real strengthened c. 3.0% against the USD to BRL 5.20. China was a significant contributor to the Fund’s performance. Health care stocks performed well as Shenzhen Kangtai rallied 28.1% while JD Health, one of the country’s leading online health care companies, rose 110 .4% in a well-participated initial public offering. Huayou Cobalt was up 51.6% owing to additional growth in electric vehicle orders. Pinduoduo continued its strong performance and rose 28.3% on the back of further growth in e-commerce. Brazil was also a contributor to the Fund’s performance. Petrobas rose another 16.5% due to higher oil prices, while Vale was up 15.1% as iron ore prices remained well-supported due to robust demand for steel. The Fund’s copper exposure was another contributor to performance as the copper price continued to rise to US $3.5 per lb. First Quantum Minerals and KAZ Minerals rose 25.5% and 5.4%, respectively. In Taiwan, Globalwafers rose 27.2% as the company confirmed the acquisition of Siltronic, which may help the company expand production and significantly increase operational scale. There were a few single stock detractors to the Fund’s performance. Shenzhen Sunway, one of China’s leading antenna manufacturers, fell -23.0%, despite positive earnings results showing revenue expansion of 21.4% year-on-year.
Furthermore, the company’s wireless charging and electromagnetic businesses may likely benefit from the global shift to 5G smartphones over the coming years. Huazhu Group and Songcheng fell -10.1% and -7.5%, respectively. The former may likely benefit from a recovery in domestic tourism over the coming months , while the latter may also profit from a recovery in mobility due to a resurgence in arrivals at its theme parks in addition to new growth projects.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/6000008bf1fb4a2869203f3d_RWCEMF_202012.pdfasset_class: Foreign Equity
asset_category: Emerging Markets
peer_benchmark: Foreign Equity - Emerging Markets Index
broad_market_index: World Emerging Markets Index
manager_contact_details: Array
ticker: CHN8850AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
FUND DOCUMENTS ->
Performance Reports
fund_features:
CC RWC Global Emerging Markets aims to provide long term capital appreciation by investing primarily in global Emerging Markets and Frontier Markets. The RWC Fund Investment Manager will seek to identify growing companies from Emerging Markets and Frontier Markets globally with strong sustainable cash flows at attractive valuations using an investment process which incorporates detailed top-down, bottom-up and thematic research.
structure: Managed Fund