December, 2022
The Fund returned 5.41% versus the MSCI ACWI ex Tobacco (Net) 4.01% over the 402022 period.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/4q22driversofreturn_aufund_global-1.pdfSeptember, 2022
The Fund returned % ve -3.15 MSCI ACW rsus the I ex Tobacco -0.31 (Net) % over the 3Q2022 period.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/3q22_driversofreturn_aufund_global.pdfJune, 2022
The Fund returned % ve -7.71 MSCI ACW rsus the I Index (Net) -15.66% over the period 2Q2022.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/2q22_driversofreturn_mutual_fund_global_0.pdfDecember, 2020
Cyclical. That’s probably the right word to describe not only knowledge, but the fourth quarter of 2020 specifically and 2020 more generally. And much like human behavior, this year’s market certainly had its cycles. In fact, 2020 felt like a complete market cycle compressed into 12 months. The year started with a strong rally that was suddenly followed by one of the fastest and most significant market declines in history as the Covid-19 pandemic led to deteriorating economic data and lack of clarity on future earnings. Fast forward a few months and we saw a strong rebound, then broad-based strength for the rest of the year post-US election and on the back of better than expected vaccine news.
Adaptability and humility were crucial in navigating these cycles, as always. That means there were times we acted swiftly and aggressively in the midst of tremendous uncertainty, and other times when we felt we needed to be patient and wait for new data points before making additional changes to our portfolios. It’s what we call driving based on the road conditions. Having said that, our strong commitment to striving to protect our investors’ assets during these inflection points often means we underperform our benchmarks on a relative basis during the early stages of a rebound.
Generally speaking, if deep cyclicals rise, which they typically do in early stages of an upturn, we expect to underperform on a relative basis. During the fourth quarter, and this was most pronounced in November, we saw the areas of the market that were most negatively impacted by the pandemic suddenly jump in price on the news of strong data on the efficacy of the vaccines as well as US elections results. Maybe the most dramatic example of this was Carnival Cruise Lines (CCL), which jumped nearly 40 per cent on Monday, November 9, 2020. As you can imagine, our exposure to this part of the market — perhaps the most negatively impacted by the pandemic — was nil, because we feel we have very little visibility on the earnings potential of these companies over the next three to five years. Many energy companies would fit in this speculative bucket as well. In November, two of the top five best-performing asset classes were Brent Crude and WTI.
Looking at the patterns of the market, what actually surprised us during this period was that several of the most expensive companies, whether on a price-to-earnings basis or more egregiously on a price-to-sales basis, also appreciated (more on that in a moment). Quality growth at sensible prices — what we call motherhood and apple pie investing — underperformed and basically didn’t participate in the rally. As you’ll see below, we believe we are positioned for where we think markets are going, but always with downside protection front of mind. Our philosophy is that investing isn’t about being proven right or wrong; it’s about surviving. That could be the answer to why most managers don’t have a very long-term record.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/GQG-Partners-4Q-2020-Commentary-GE.pdfasset_class: Foreign Equity
asset_category: Large Growth
peer_benchmark: Foreign Equity - Large Growth Index
broad_market_index: Developed -World Index
manager_contact_details: Array
ticker: ETL7377AU
release_schedule: Quarterly
commentary_block: Array
factsheet_url:
https://gqgpartners.com/funds/managed-funds-australia/global-equity-fund
Documents => Drivers of return
login password:
yuni@quantreports.com
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fund_features:
GQG Partners Global Equity aims to seek long-term capital appreciation by investing directly or indirectly in equity securities and equity-linked securities anywhere in the world that GQG Partners believes can sustain long-term earnings growth and are available at a reasonable price. The objective of the Fund is to provide a rate of return (after fees and expenses and before taxes) which exceeds the return of the MSCI ACWI ex Tobacco (AUD).
- Employs a disciplined investment process rooted in deeply held beliefs about investing.
- Pursues a fundamental security selection process, conducting analyses of a company’s financial statements, economic health, competitors and the markets that it serves.
- Seeks to identify companies with a strong financial position, capable management, and promising growth opportunities, which GQG Partners believes are most likely to enjoy sustained earnings growth over time.
- Combines an intensive focus on high quality companies with strong pricing discipline.
structure: Managed Fund