September, 2023
The fund performed mostly in line with the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended September 30, 2023. Apple was the largest relative contributor for the month. Although shares of Apple fell over the month, our position was a relative contributor due to our underweight position versus the benchmark. Shares of Apple were pressured by several factors, including macroeconomic concerns, fears that China would restrict iPhone purchases, and issues involving the new iPhone 15 Pro overheating. We still believe that Apple is well positioned for growth given consistent iPhone demand, market share gains in China, and the firm’s massive research and development program. However, our underweight versus the benchmark is a reflection of the stock’s relatively expensive valuation and uncertainty surrounding the firm’s near-term outlook. At the sector level, stock selection in industrials and business services helped relative returns, with our holdings in SM Investments, Roper Technologies, and Container Corporation of India performing the best. On the other hand, holdings in energy hurt relative returns, especially our positions in EQT and Schlumberger.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/AHGE_PortfolioUpdate_PORTFOLIO_UPDATE_au_en_AUD_2023-09-30_1697010124.pdfAugust, 2023
The fund performed mostly in line with the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended August 31, 2023. Adyen was the largest relative detractor for the month. Adyen is a full-stack payments platform that consists of providing gateway, acquiring, risk management, processing, settlement, and issuing services.
Shares sold off sharply following the release of very poor earnings results that underperformed already low consensus expectations. Results were mainly driven by a slowdown in the U.S. segment due to merchant costcutting, increasing competition, higher capital expenditures, and challenges with offline services. We still believe Adyen has a long runway for above-market growth driven by secular trends and a technological advantage over incumbents that is very difficult to replicate, but given these disappointing earnings results, we chose to moderate our position size. At the sector level, stock selection in financials hurt relative returns, with our holdings in Adyen and NU Holdings performing the worst. On the other hand, holdings in information technology helped relative returns, especially our positions in FPT and NVIDIA.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/AHGE_PortfolioUpdate_PORTFOLIO_UPDATE_au_en_AUD_2023-08-31_1694513729.pdfJuly, 2023
The fund outperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended July 31, 2023. Evotec was the largest relative contributor for the month. Although the European contract research organization lowered its 2023 full-year guidance due to the impact from a cyberattack earlier in the year, shares rose on the back of several positive developments, including a contract with the U.S. Department of Defense and news that Bristol-Myers Squibb would be entering into an exclusive licensing agreement. Management also indicated that despite one-off issues affecting 2023 growth, it fully expects reaccelerating in 2024 and beyond. Evotec continues to be one of the portfolio’s highest-conviction ideas, and we believe the company should benefit from secular tailwinds and deeper customer penetration as end market businesses choose to outsource research services more often. At the sector level, stock selection in consumer discretionary helped relative returns, with our holdings in Rivian Automotive, Li Auto, and DoorDash performing the best. On the other hand, holdings in financials hurt relative returns, especially our positions in Fiserv, Axis Bank, and HDFC Bank.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/AHGE_PortfolioUpdate_PORTFOLIO_UPDATE_au_en_AUD_2023-07-31_1691662849.pdfJune, 2023
The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended June 30, 2023. Tesla was the largest relative detractor for the month. While shares of Tesla rose over the period, our position was a relative detractor due to our underweight versus the benchmark. Investors have been encouraged by recent developments for the company, including news that all versions of the firm’s cheapest Model 3 would be eligible for the full USD 7,500 electric vehicle tax credit, as well as the announcements that Ford, General Motors, and Rivian would each adopt Tesla’s North American charging plug standard. While we continue to believe Tesla is a highquality company that is massively disrupting the automotive industry, our underweight position reflects our understanding that there are some risks to the company’s growth outlook, especially in the short term. At the sector level, stock selection and sector allocation in consumer discretionary hurt relative returns, with our holdings in Tesla, MercadoLibre, and Prada performing the worst. On the other hand, holdings in financials helped relative returns, especially our positions in Fiserv, One 97 Communications, and NU Holdings..
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/AHGE_PortfolioUpdate_PORTFOLIO_UPDATE_au_en_AUD_2023-06-30_1689330522.pdfMay, 2023
The fund outperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended May 31, 2023. Advanced Micro Devices (AMD) was the largest relative contributor for the month. AMD rose as investor exuberance from semiconductor names following a blowout quarterly report from NVIDIA lifted the broader industry. During the period, Advanced Micro Devices released earnings results that disappointed investors, mainly due to weaker-than-expected PC and data center numbers, which also drove soft guidance for the second quarter. Although the earnings report initially pressured shares, the broader strength in semiconductors and an unconfirmed report that Microsoft would be teaming with AMD to create artificial intelligence (AI) chips to rival NVIDIA helped lift the stock. We continue to believe that Advanced Micro Devices is well positioned to garner significant share in its end markets as personal computing and data center businesses reaccelerate and the company benefits from AI demand. The firm’s acquisition of Xilinx, which formally closed in February 2023, provides longer-term growth optionality, in our view. At the sector level, stock selection in health care helped relative returns, with our holdings in Evotec, McKesson, and Eli Lilly performing the best. On the other hand, holdings in materials hurt relative returns, especially our positions in Nutrien, CF Industries, and Dsm-Firmenich.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/AHGE_PortfolioUpdate_PORTFOLIO_UPDATE_au_en_AUD_2023-05-31_1687268075.pdfApril, 2023
The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended April 30, 2023. Our position in European contract research organization, Evotec, was the biggest relative detractor in the portfolio. In a reversal from March, shares of Evotec pulled back in April. Investors appeared to take profits after recent strength and were also cautious following news of a cyberattack that affected Evotec’s systems.
Evotec continues to be one of the portfolio’s highest-conviction ideas, and we believe the company should benefit from secular tailwinds and deeper customer penetration as endmarket businesses choose to outsource research services more often. At the sector level, stock selection in communication services hurt relative returns, with our holdings in Sea, ROBLOX, and Liberty Media Corporation performing the worst. On the other hand, holdings in financials helped relative returns, especially our positions in BDO Unibank, Fiserv, and Kotak Mahindra Bank.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/AHGE_PortfolioUpdate_PORTFOLIO_UPDATE_au_en_AUD_2023-04-30_1684313255.pdfMarch, 2023
The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended March 31, 2023. Our position in Charles Schwab was the biggest relative detractor in the portfolio. Shares of Charles Schwab sold off with the broader financials sector following the shuttering of several U.S. regional banks due to a combination of unrealized losses from investing in longer-duration
Treasuries and cryptocurrency and then a sudden run on those banks as depositors cashed out their accounts. While Charles Schwab has a more diversified structure than the affected banks, investors punished the company more than some other peers due to concerns about reduced fees and higher costs as clients switch to higher interest rate generating accounts in an event known as cash sorting. There was also continued overhang from the company’s disappointing earnings report in February. We still believe Charles Schwab is a premier franchise with an attractive and diversified business model; however, we recognize that the stock could be volatile in the coming months and reduced our position. At the sector level, stock selection and sector allocation in financials hurt relative returns, with our holdings in Charles Schwab, Huntington Bancshares, and Fifth Third Bancorp performing the worst. On the other hand, holdings in communication services helped relative returns, especially our positions in Sea and ROBLOX.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/AHGE_PortfolioUpdate_PORTFOLIO_UPDATE_au_en_AUD_2023-03-31_1681999533.pdfFebruary, 2023
The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended February 28, 2023. Our position in Masan was the biggest relative detractor in the portfolio.
Masan is a Vietnamese consumer-oriented conglomerate. Shares plunged with the broader Vietnamese market, as sentiment worsened across the broader Southeast Asian region amid rising U.S.-China political tensions and a property market downturn in China that has tempered optimism about China’s growth outlook. We believe Masan will be a key beneficiary of Vietnam’s strong economic growth and favorable demographics given its dominant position in several consumer-focused categories and growing e-commerce capabilities. At the sector level, stock selection in consumer staples hurt relative returns, with our holdings in Masan and Estee Lauder performing the worst. On the other hand, holdings in financials helped relative returns, especially our positions in NU Holdings, Charles Schwab, and Bank Central Asia.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/AHGE_PortfolioUpdate_PORTFOLIO_UPDATE_au_en_AUD_2023-02-28_1678988474.pdfJanuary, 2023
The fund outperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended January 31, 2023.
Our position in MercadoLibre was the biggest relative contributor in the portfolio. MercadoLibre, Latin America’s largest online trading platform, rose with the broader Argentinian market following news that the government would begin buying back over $1 billion in overseas bonds to improve its debt profile. Additionally, investors interpreted competitor Americanas’ disclosure of accounting inconsistencies in its income statement and balance sheet as potentially beneficial to MercadoLibre’s business. We think MercadoLibre is on track to be the leading digital provider of financial services in Latin America, with a vibrant marketplace ecosystem and competitive technology. At the sector level, stock selection in health care helped relative returns, with our holdings in Evotec, Lonza Group, and Sartorius performing the best. On the other hand, holdings in financials weighed on relative returns, especially our positions in Charles Schwab, Axis Bank, and Kotak Mahindra Bank.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/AHGE_PortfolioUpdate_PORTFOLIO_UPDATE_au_en_AUD_2023-01-31_1676023332.pdfDecember, 2022
The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended December 31, 2022.
Our position in Sumber Alfaria Trijaya was the biggest relative detractor in the portfolio. Shares of the Indonesian convenience store operator fell with the broader Indonesian market as investor fears about slowing global growth and the possibility of a recession in 2023 pressured many emerging markets. We think that Sumber Alfaria Trijaya is well positioned for accelerating growth and to capitalize on its extensive network of emoney and e-commerce partnerships to grow its fee-based income, already a major profit contributor. At the sector level, stock selection in consumer discretionary hurt relative returns, with our holdings in Rivian Automotive, Farfetch, and Coupang performing the worst. On the other hand, holdings in information technology contributed the most to relative returns, especially our positions in MongoDB, Glodon, and Apple.
November, 2022
The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended November 30, 2022.
Our position in Atlassian was the biggest relative detractor in the portfolio. Atlassian is a leading provider of on-premises and cloud-based workflow and collaboration software for enterprises. Shares sold off after the company reported extremely disappointing earnings results, driven by significantly slower seat expansions than expected. The company also meaningfully cut its cloud growth guidance for fiscal year 2023. Despite near-term challenges, we appreciate the long growth runway the company has as it benefits from emerging software development trends, cloud migration, and a low-cost flywheel sales model. At the sector level, stock selection in information technology hurt relative returns, with our holdings in Atlassian and NVIDIA performing the worst. On the other hand, holdings in consumer staples contributed the most to relative returns, especially our positions in Masan, Tsingtao Brewery, and Sumber Alfaria Trijaya.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/AHGE_PortfolioUpdate_PORTFOLIO_UPDATE_au_en_AUD_2022-11-30_1670833842.pdfOctober, 2022
The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended October 31, 2022.
Our position in Apple was the biggest relative detractor in the portfolio. Although shares of Apple rose over the period, our position was a relative detractor due to our underweight position versus the benchmark. We believe that Apple is well positioned for growth given consistent iPhone demand, market share gains in China, and the firm’s massive research and development program. However, our underweight versus the benchmark is a reflection of the stock’s relatively expensive valuation. At the sector level, stock selection in consumer discretionary hurt relative returns, with our holdings in Li Auto, JD.com, and Amazon.com performing the worst. On the other hand, holdings in financials contributed the most to relative returns, especially our positions in Goldman Sachs, Axis Bank, and Huntington Bancshares.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/AHGE_PortfolioUpdate_PORTFOLIO_UPDATE_au_en_AUD_2022-10-31_1668067021.pdfSeptember, 2022
The fund outperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended September 30, 2022. Our position in Apple was the biggest relative contributor in the portfolio. Although shares of Apple declined over the period, our position was a relative contributor due to our underweight position versus the benchmark. We believe that Apple is well positioned for growth given consistent iPhone demand, market share gains in China, and the firm’s massive research and development program. However, our underweight versus the benchmark is a reflection of the stock’s relatively expensive valuation. At the sector level, stock selection in consumer staples helped relative returns, led by our holdings in Sumber Alfaria Trijaya, InRetail Peru, and United Spirits. On the other hand, holdings in health care detracted the most from relative returns, especially our positions in Evotec, WuXi Biologics, and Sartorius
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/191694349.pdfJuly, 2022
The fund outperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended July 31, 2022. Our position in Rivian Automotive was the biggest relative contributor in the portfolio. Shares of the electric vehicle maker rebounded after months of losses as investors were encouraged by several analyst upgrades, signs that production could be accelerating, news that Amazon.com would begin rolling out its fleet of Rivian’s delivery vehicles, and the firm’s decision to cut its workforce by 6% in an effort to reign in costs.
We remain confident in the long-term fundamentals of the business and view Rivian as a unique opportunity to participate in the automotive industry’s most powerful secular trend of electrification. We believe that the business has competitive technology and an impressive structure due to its partnerships, operations, and product development, all run by a highquality and visionary management team. At the sector level, stock selection in financials helped relative returns, led by our holdings in Goldman Sachs, Partners Group Holding, and Charles Schwab. On the other hand, holdings in information technology detracted the most from relative returns, especially our positions in Apple, Glodon, and GDS Holdings.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/190037696.pdfJune, 2022
For the month ended 31 May 2022, Capital Group New Perspective Fund (AU) returned -2.7%1 before fees, while the index returned -0.8%3; net of fees, the fund returned -2.8%2. For the 12-month period, the fund returned -6.3%1 before fees and -7.1%2 net of fees, compared to the index’s return of 0.6%3
The fund outperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended June 30, 2022. Our position in Sumber Alfaria Trijaya was the biggest relative contributor in the portfolio as investors pushed up shares of Indonesian retail store operator in June. Given recent inflation, consumers have shifted their shopping for food and non-food necessities closer to home.
This benefited sales at the more than 10,000 neighborhood Alfamart convenience store and minimarket outlets. In addition to its accelerating retail sales growth trends, we think that Sumber Alfaria Trijaya is also well positioned to capitalize on its extensive network of e-money and ecommerce partnerships to grow its fee-based income, already a major profit contributor. At the sector level, stock selection in information technology helped relative returns, led by our holdings in Atlassian, ForgeRock, and Salesforce. On the other hand, holdings in industrials and business services detracted the most from relative returns, especially our positions in GE, Siemens, and Ashtead.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGNPAU-m-1-1.pdfMay, 2022
The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended May 31, 2022. Our position in Snap, which owns social messaging app Snapchat, was the biggest relative detractor in the portfolio. Shares plunged after the company issued an unexpected profit warning, striking a surprisingly negative tone and revising second-quarter guidance to below the low end of its prior guidance range.
The company cited a macroeconomic environment that had “deteriorated further and faster than anticipated,” which appears to be drastically affecting advertiser budgets. Despite nearterm headwinds, we continue to believe that Snap represents a uniquely compelling opportunity given the platform’s growing popularity among Generation Z, nascent monetization, and the firm’s solid plans to increase user growth and revenue through investments in its salesforce as well as new Discover content and Augmented Reality. At the sector level, holdings in information technology detracted the most from relative returns, especially our positions in Atlassian, MongoDB, and Bill.Com Holdings. On the positive side, stock selection in health care helped relative returns, led by our holdings in Evotec, Daiichi Sankyo, and Argenx.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/187900231.pdfApril, 2022
The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended April 30, 2022. Our position in electric vehicle maker Rivian was the largest relative detractor in the portfolio for the period. Investors continued to pressure shares of Rivian Automotive. Ongoing supply chain issues, particularly for semiconductor chips and electric battery components, restricted the production capacity of the new electric vehicle manufacturer. We remain confident in the long-term fundamentals of the business and view Rivian as a unique opportunity to participate in the automotive industry’s most powerful secular trend of electrification. We believe that the business has competitive technology and an impressive structure due to its partnerships, operations, and product development, all run by a high quality and visionary management team.
At the sector level, holdings in consumer discretionary detracted the most from relative returns, especially our positions in Rivian, Amazon.com, and Doordash. On the positive side, stock selection in industrials and business services modestly helped relative returns, led by our holdings in Roper Technologies, Havells India, and Waste Connections.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/187151518.pdfMarch, 2022
The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended March 31, 2022. Our position in electric vehicle maker Rivian was the largest relative detractor in the portfolio for the period. Shares skidded after the electric vehicle manufacturer posted a wider-than-expected fourth-quarter loss and cut 2022 production numbers in half citing inflationary pressures and supply chain challenges. We remain confident in the long-term fundamentals of the business and view Rivian as a unique opportunity to participate in the automotive industry’s most powerful secular trend of electrification. We believe the business has competitive technology and an impressive structure due to its partnerships, operations, and product development, all run by a high-quality and visionary management team.
At the sector level, holdings in consumer discretionary detracted the most from relative returns, especially our positions in Rivian, Coupang, and Zalando. On the positive side, stock selection in utilities modestly helped relative returns, led by our holdings in Sempra Energy and NextEra Energy.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/185996667.pdfFebruary, 2022
The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended February 28, 2022. Our position in contract research organization Evotec was the largest relative detractor in the portfolio for the period. Shares of Evotec pulled back following news that Bayer had suddenly discontinued development of eliapixant, a P2X3 receptor antagonist, an unexpected hit to Evotec’s pipeline. Nevertheless, we have high conviction in Evotec. The company has been producing solid double-digit earnings growth, which we think will continue, driven by secular tailwinds and deeper customer penetration as end-market businesses choose to outsource these services more often. At the sector level, holdings in materials detracted the most from relative returns, especially our positions in Linde, International Paper Company, and Mondi. On the positive side, stock selection in the information technology sector modestly helped relative returns, led by our holdings in Bill.Com Holdings, Teamviewer, and GDS Holdings.
We retain a gently optimistic, as opposed to defensive, perspective via a focus on stocks that we believe should compound earnings over the next 2-3 years and as we work through the impact of COVID-19, including a winter that has evolved in a way that is more negative than we anticipated. The questions of inflation versus deflation, value versus growth, and COVID-on versus COVID-off are clearly all very important, but it is rare for the market’s macro focus and thematic pursuit to be so large or rotational as we have seen in 2021. The recent invasion of Ukraine by Russia is another major event we are monitoring, and while we do not have any direct exposure to Russian or Ukrainian companies, we understand there are broad-based risks that could materialize and are watching the situation closely. The positive and clear aspect of the market backdrop has been the continuation of strong corporate earnings, which in turn has supported valuations and the case for equities. This continues to make global equities and thoughtful stock picking a relevant approach for return generation, even more so on the stock picking front as we normalize some of the extremes of 2021.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/185154438.pdfJanuary, 2022
The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net MSCI All Country World Index ex Australia for the onemonth period ended January 31, 2022. Our position in electric automaker Rivian was the largest relative detractor in the portfolio for the period. As the reality of near-term interest rate hikes became clearer, investors rotated out of shares of high-growth companies valued primarily on their future potential cash flow stream, like Rivian, which only recently went public. We remain confident in the long-term fundamentals of the business and view Rivian as an outstanding and unique opportunity to participate in the automotive industry’s most powerful secular trend of electrification. At the sector level, holdings in consumer discretionary detracted the most from relative returns, especially our positions in Rivian, THG, and Farfetch. On the positive side, holdings in real estate helped relative returns, led by our holdings in China Resources Mixc Lifestyle, KE Holdings, and Welltower.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/183195581.pdfDecember, 2021
The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended December 31, 2021. Our position in Southeast Asian mobile platform Sea was the largest relative detractor in the portfolio for the period. Recent earnings released in November showed that growth in the firm’s key gaming business had slowed down significantly as life returned to the “COVID-off” mode in many of the countries where it operates. Despite good results from both the e-commerce and fintech segments, investor sentiment turned negative, and the stock price skidded throughout December. At the sector level, holdings in consumer discretionary detracted the most from relative returns, especially our positions in Rivian, Grab, and Etsy. No sectors contributed on a relative basis for the period.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/182424245.pdfOctober, 2021
We saw equity market volatility increase throughout the recent quarter in what has been both a challenging and a fascinating macro environment, with an interesting mix of positive and negative tensions. Global economic growth remains above trend, albeit past peak levels; liquidity remains abundant, although policy accommodation is expected to gradually tighten; substantial progress on vaccine distribution has been made, but we face increased risk from the fast-spreading delta variant; publicly traded corporates have broadly delivered strong earnings, yet they face prospects of higher taxes and a stricter regulatory environment; equity valuations are more than a standard deviation above their historical average on a 30-year view; however, investors are getting more yield in equities than in high yield bonds; and market sentiment is more positive than not, but not outrightly bullish. Additionally, policy objectives in China have continued to evolve, which has led to even more investor complexity.
We expect markets to remain volatile in the near term given the ongoing pushes and pulls across such large dimensions and are trying to be balanced within the portfolio, keeping the overall portfolio risk (beta) near 1.0. While our mandate is growth oriented, we have the flexibility to be contrarian, which allows us to buy the best assets at good prices and embrace some uncertainty, particularly when that uncertainty has already led to very meaningful price declines. This approach has manifested itself within the portfolio through an increased exposure to China, a co-leader in technology and artificial intelligence, the world’s second-biggest economy, and which is located at the center of southeast Asia, which we view as the most vibrant region of the world. We are not making a portfolio-defining bet but are leaning into China on weakness, especially in names we believe will provide compelling upside potential over the long term, despite near-term headwinds
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/180190535-1.pdfSeptember, 2021
The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended September 30, 2021. Zalando was the largest detractor in the portfolio for the period. The European online apparel retailer pulled back along with the broader consumer discretionary sector amid rising inflation and continued global supply chain issues. Aftereffects from the firm’s second-quarter earnings results also pressured the stock: while results were strong, the data hinted at a future deceleration due to a normalization of growth back to prepandemic levels that, while still strong, would not be as robust as recent months.
We have high conviction in Zalando given the firm’s dominant position in the European online fashion segment, with substantial advantages over peers in terms of scale, distribution network, brand relationships, consumer traffic, technology, operational efficiency, and strategy. At the sector level, holdings in the consumer discretionary sector detracted the most from relative returns, especially positions in Zalando, ASOS, and Magazine Luiza. On the positive side, holdings in the information technology sector contributed the most, led by our positions in Mongodb, Atlassian, and Epic Games.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/180190535.pdfJuly, 2021
The fund underperformed the MSCI All Country World Index ex Australia Hedged to AUD Net for the one-month period ended July 31, 2021. KE Holdings was the largest detractor in the portfolio. Shares of a leading integrated online and offline platform for housing transactions and services in China fell due to mounting regulatory headwinds in the region and a lack of clarity regarding the voting rights of the recently deceased founder. At the sector level, stock selection in consumer discretionary lowered relative returns the most, with our positions in Wayfair, ASOS, and Alibaba Group Holding hurting the most. Conversely, stock choices in industrials and business services aided relative returns the most, led by our positions in NARI Technology, Experian, and Rentokil Initial.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/175863900.pdfJune, 2021
Based on transaction prices, the fund's return was 4.19%. The fund aims to achieve higher risk-adjusted returns than both the broader market and generic factor indices over a full business cycle by building efficient, well-diversified exposure to enhanced factors. The value, momentum, lowvolatility and quality factors have all shown to provide better risk-adjusted performance than the broader market on an individual basis – either by providing higher returns than the market with similar volatility, or by providing returns in line with the market but with reduced volatility. In addition, the fund is benefiting from the diversification effect of exposure to four factor premiums. The fund performed in line with the market index in June, based on the NAV closing prices. The momentum and quality factors outperformed the index, while the low-risk and value factors lagged. Attributing the factor performances to sectors (split into allocation and stock selection effects), we find that both the allocation and selection effect were flat.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/174700120.pdfMay, 2021
Develop European stocks were broadly positive as the accelerating rollout of coronavirus vaccines and central banks accomodative monetary policies contributed to investors optimism about the economic recovery.Austria and italy were among thestrongest performers. Bussiness confidence and purchasing managers surveys bolstered optimism about an economic recovery as lockdowns and restrictions eased. The flash composite eurozone Purchasing Mangers Index0 an early estimate, usually based on 85% of survey responses - rose at the fastes rate in more than three years in May.
Lifted by improvement in the service sector and contiuned strength in manuffacturing activity. The european Commission"s sentiment gauge showed that economic confidence in the eurozonesurged 11.4.5- its highest level since early 2018
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/172773872.pdfDecember, 2020
The fund outperformed the MSCI AC World Index ex Australia Hedged to AUD Net for the one-month period ended December 31, 2020. Evotec was the largest relative contributor in the portfolio. Shares of Europe's largest contract research organisation (CRO) spiked on news that the company had achieved key milestones in its collaboration with Bristol Myers Squibb, which will trigger milestone payments, additional research funding for further development of the programs, and could potentially result in success-based payments and royalties, which should be accretive to earnings.
We have high conviction in Evotec's ability to produce double-digit earnings growth, driven by secular tailwinds and deeper customer penetration as end-market businesses choose to adopt the firm's services more often. At the sector level, stock selection in financials contributed the most to relative performance, led by Goldman Sachs, Morgan Stanley, and Wells Fargo. Conversely, information technology names detracted, especially our positions in Apple, Salesforce.com, and Splunk.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/163442279.pdfasset_class: Foreign Equity
asset_category: Currency Hedged
peer_benchmark: Foreign Equity - Currency Hedged Index
broad_market_index: Developed -World Index
manager_contact_details: Array
ticker: ETL0312AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
fund_features:
T. Rowe Price Global Equity (Hedged) aims to provide long-term capital appreciation by investing primarily in a portfolio of securities of companies which are traded, listed or due to be listed, on recognised exchanges and/or markets throughout the world.
- The portfolio may include investments in the securities of companies traded, listed or due to be listed, on recognised exchanges and/or markets, of developing countries.
- The Investment Manager may seek to achieve the Fund’s objective through investment of up to 100% of the Fund’s assets in one or more managed investment schemes, managed by the Investment Manager or an affiliate of the Investment Manager, that have the same or similar investment objectives as the Fund.
structure: Managed Fund