September, 2020
Equities markets continue to recover their losses from earlier this year with strong index moves in July and August tempered somewhat by a pullback in September. Attention has shifted from government support packages and easy monetary policy to the uncertain outcome of the US Presidential Election, along with second waves of COVID-19 creating ongoing disruption in Western economies. The MSCI All Countries World Index has just about recovered its losses for 2020 (in local currency) though this conceals significant divergence at the regional and sector level. While the S&P 500 recorded a new alltime high in early September the majority of markets across Europe, Asia and elsewhere remain down, some in excess of 20%. The year has been notable for positive benchmark returns becoming ever more concentrated into a shrinking number of mega-cap technology businesses. The portfolio returned 9.18% for the quarter versus 6.94% for the benchmark. Over a rolling 12 months the portfolio has returned 8.74% while the benchmark has returned 9.05%. It is worth noting the Fund only owns one of the top 25 benchmark weights (2.4% weight versus 24% of the index) and in that context the portfolio’s ability to outperform calendar year to date has been encouraging, indicating strong relative returns from some of our more ‘outside the mainstream’ names. The biggest contributors to outperformance in the quarter were Danaher (stronger than expected earnings), Techtronic (results for the half-year significantly better than peer group and market expectations), and TSMC (continued strong trends including potential outsourcing by Intel for 7-nanometer chips). The biggest detractors to performance included Ferrovial (COVID 2nd wave impact to transport infrastructure assets), Baxter and RELX (social distancing-driven headwinds on Exhibitions business).
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/30092020.-CI-GLOBAL-EQUITIES-FUND-HEDGED-1.pdfticker: CIP0003AU
commentary_block: Array
factsheet_url:
https://www.cooperinvestors.com/our-funds/ci-global-equities-strategy-unhedged/
Use commentary from HEDGED factsheet
asset_class: Foreign Equity
asset_category: Large Blend - Fundamental
peer_benchmark: Foreign Equity - Large Fundamental Index
broad_market_index: Developed -World Index
structure: Managed Fund