September, 2023
The Portfolio returned 0.85%, 22.39%, 9.67% and 12.32% net of fees for the quarterly, 1-,5-, and 10-year periods, versus returns of -0.43%, 21.64%, 9.79% and 12.48% for the MSCI World ex-AU (net) benchmark. Stock selection contributed to returns and country allocations were positive. Key sources of positive active returns included stock selection in the United States, an opportunistic exposure to Taiwan, and a combination of stock selection and an overweight position in Denmark. Leading advances within these markets respectively included a position in Booking Holdings, a holding in Wistron, and an investment in Novo Nordisk. Detractors included a combination of stock selection and an overweight position in Germany, a combination of stock selection and an underweight position in Japan, and an opportunistic exposure to China. Leading declines within these markets in turn included a position in Siemens, a holding in Rohm, and an investment in G-bits Network Tec A CNY1.*
Key Holdings2
Positive
‐ Our off-benchmark exposure to Wistron Corp., a Taiwan-based electronics manufacturer, was rewarded with 40 basis points of active returns as share prices rose 22.3% during the quarter. The companies been benefiting from increased investment in emerging technologies such as AI, green energy, and Industry 4.0.
Negative
‐ Our overweight to Fortinet, Inc., a provider of cybersecurity and networking solutions, cost the portfolio 30 basis points of active returns as share prices tumbled 21.6% during the period. The company has been reeling from weak macroeconomic conditions and recessionary fears which have negatively impacted its sales growth.
June, 2023
The Portfolio returned 6.53%, 23.28%, 11.50% and 12.72% net of fees for the quarterly, 1-,5-, and 10-year periods, versus returns of 7.63%, 22.59%, 11.46% and 13.17% for the MSCI World ex-AU (net) benchmark. Stock selection detracted from returns, while the country allocations were positive. Key sources of negative active return included a combination of stock selection and an underweight position in the United States, a combination of stock selection and an overweight position in Denmark, and opportunistic exposure to China. Leading declines within these markets respectively included a position in Valero Energy, a holding in AP Moller - Maersk, and an investment in G-bits Network Tec A CNY1. Contributors included opportunistic exposure to Taiwan, a combination of stock selection and an underweight position in Hong Kong, and stock selection in Spain. Leading advances within these markets in turn included a position in Wistron, a holding in IGG, and an investment in Industria de Diseno Textil.*
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Sustainable-Global-Equity-Fund-June-2023.pdfMarch, 2023
The Portfolio returned 10.57%, 6.75%, 11.41% and 13.75% net of fees for the quarterly, 1-,5-, and 10-year periods, versus returns of 9.20%, 4.31%, 11.02% and 13.95% for the MSCI World ex-AU (net) benchmark. Stock selection contributed to returns and country allocations were positive. Key sources of positive active returns included stock selection in the United States, an opportunistic exposure to China, and stock selection in France. Leading advances within these markets respectively included a position in Cadence Design Systems, a holding in 360 Security Technology, and an investment in STMicroelectronics. Detractors included a combination of stock selection and an overweight position in Norway, stock selection in the United Kingdom, and stock selection in Germany. Leading declines within these markets in turn included a position in Equinor, a holding in Johnson Matthey, and an investment in Deutsche Bank.*
Key Holdings2
Positive
‐ Our overweight to STMicroelectronics N.V., a designer and manufacturer of semiconductor products, was rewarded with 40 basis points of active return as share prices rallied 50.2% over the quarter. The company expects first quarter net revenues to increase 18.5% year-over-year to $4.2 billion. It has been benefiting from strength in its automotive and industrial infrastructure segments.
Negative
‐ Our underweight to NVIDIA Corp., an artificial intelligence computing company, cost the portfolio 54 basis points of active return as share prices rallied 87.4% over the quarter. The company has been benefiting from growth opportunities in ray-traced gaming, rendering, high-performance computing, AI and self-driving cars. A surge in Hyperscale demand also boosted its shares.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Sustainable-Global-Equity-Fund-March-2023.pdfDecember, 2022
The Portfolio returned 3.02%, -11.08%, 9.01% and 13.12% net of fees for the quarterly, 1-,5-, and 10-year periods, versus returns of 3.95%, -12.52%, 9.25% and 13.74% for the MSCI World ex-AU (net) benchmark. Stock selection detracted from returns while the country allocations were positive. Key sources of negative active returns included a combination of stock selection and an underweight position in France, stock selection in Switzerland, and a combination of stock selection and an underweight position in Japan. Leading declines within these markets respectively included a lack of exposure to TotalEnergies, a holding in Roche Holding, and an investment in eRex. Contributors included an overweight position in Denmark, an overweight position in Austria, and a combination of stock selection and an underweight position in Canada. Leading advances within these markets in turn included a position in Novo Nordisk, a holding in OMV, and an investment in Fairfax Financial Holdings.*
Key Holdings2
Positive
‐ Our underweight to Tesla Inc., an EV maker, was rewarded with 71 basis points of active return as share prices declined 54.1% over the quarter. Tesla’s Q4 EV delivery data disappointed, falling short of expectations and weighed on the stock. The company made 405,278 deliveries in the period, compared to the consensus estimate of around 427,000 deliveries.
Negative
‐ Our out of benchmark exposure to Yelp Inc., operator of an online platform that connects consumers with local businesses, cost the portfolio 27 basis points of active return as share prices declined 20.3% in the period. A slowing economy and supply-chain constraints have been weighing on the stock. Increasing competition from Google and lack of revenue diversification are other concerns for the company.
September, 2022
For the third quarter, the portfolio outperformed its benchmark2 by 1.5%. Gains were realised from prudent stock selection while country allocations were negative. Key sources of positive active return included stock selection in the United States, stock selection in Germany, and a combination of stock selection and an overweight position in the Netherlands. Leading advances within these markets respectively included a position in Molina Healthcare, a holding in Merck, and an investment in Wolters Kluwer. Detractors included stock selection in the United Kingdom, an opportunistic exposure to China, and a combination of stock selection and an overweight position in Denmark. Leading declines within these markets in turn included a position in GSK, a holding in Orient Overseas International, and an investment in AP Moller - Maersk.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Sustainable-Global-Equity-Fund-June-2022-1.pdfJune, 2022
For the second quarter, the portfolio outperformed its benchmark2 by 0.9%. Gains were realized from a combination of stock selection and country allocations. Key sources of positive active return included a combination of stock selection and an underweight position in the United States, an opportunistic exposure to Thailand, and stock selection in Japan. Leading advances within these markets respectively included a position in McKesson, a holding in PTT Exploration & Production, and an investment in Mitsubishi Electric. Detractors included a combination of stock selection and an underweight position in the United Kingdom, a combination of stock selection and an underweight position in France, and stock selection in Switzerland. Leading declines within these markets in turn included a position in Greggs, a holding in STMicroelectronics, and a lack of exposure to Nestle.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Sustainable-Global-Equity-Fund-June-2022.pdfMarch, 2022
For the first quarter, the portfolio outperformed its benchmark2 by 0.7%. Gains were realized from a combination of stock selection and country allocations. Key sources of positive active return included an opportunistic exposure to Brazil, stock selection in Israel, and a combination of stock selection and an overweight position in Norway. Leading advances within these markets respectively included a position in Energisa, a holding in Zim Integrated Shipping Ord Shs, and an investment in Equinor. Detractors included stock selection in the United States, a combination of stock selection and an underweight position in the United Kingdom, and a combination of stock selection and an underweight position in Canada. Leading declines within these markets in turn included a position in Bio-Rad Laboratories, a holding in Greggs, and a lack of exposure to Canadian Natural Resources.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Sustainable-Global-Equity-Fund-March-2022.pdfDecember, 2021
For the fourth quarter, the portfolio outperformed its benchmark3 by 0.1%. Gains realised from stock selection were somewhat offset by negative payoffs from country allocations. Key sources of positive active return included stock selection in Denmark, stock selection in Israel, and a combination of stock selection and an underweight position in Germany. Leading advances within these markets respectively included a position in AP Moller - Maersk, a holding in ZIM Integrated Shipping Services Ord Shs, and a lack of exposure to BASF. Detractors included opportunistic exposure to South Korea, opportunistic exposure to China, and a combination of stock selection and an overweight position in Italy. Leading declines within these markets in turn included a position in Shinhan Financial Group, a holding in Sansteel Minguang, and an investment in Eni.
Key Holdings
Positive:
‐ Our overweight exposure to Accenture PLC, a global professional services company, was rewarded with 32 basis points of active return. Share prices climbed on a series of positive developments, most notably, the publication of highly favorable financial results for the quarter ending Nov. 30, 2021, which included a 27% increase in revenue over the same period last year. Also on a positive note, Accenture PLC was awarded a seven-year, $87 million contract by the U.S. Patent and Trademark Office and acquired Japan-based, integrated commerce services provider Tambourine.
Negative:
‐ Our underweight exposure to Nvidia Corp, an artificial intelligence computing company, cost the portfolio 41 basis points of active return as share prices surged 42% over the quarter. Record third quarter fiscal 2022 results boosted share prices. Highlights included a 50% jump in revenues from the same period one year earlier and a 9% hike from the previous quarter. The favorable outcome was largely driven by robust gains from the company’s Gaming, Data Center, and Professional Visualization market platforms
June, 2021
For the second quarter, the portfolio outperformed its benchmark2 by 0.8%. Gains realised from stock selection were joined with positive payoffs from country allocations. Key sources of positive active return included stock selection in the United States, a combination of stock selection and an underweight to Japan, and stock selection in Denmark. Leading advances within these markets respectively included a position in Tenet Healthcare Corp., a holding in Fujitsu Ltd., and an investment in AP Moller – Maersk. Detractors included a combination of stock selection and an underweight to France, stock selection and an underweight to Canada,and stock selection and an overweight to Germany. Leading declines within these markets in turn included a position in Societe Generale, a holding in Manulife Financial, and an investment in Bayerische Motoren Werke.*
Key Holdings3 Positive ‐ Our position in Evergreen Marine Corp, one of the world’s largest shippers, was rewarded with 32 basis points of active return. Share prices of the Taiwanese company shot up alongside steep increases in shipping rates. Negative ‐ Our lack of exposure to Nvidia Corp cost the portfolio 27 basis points of active return as share prices surged on news that the artificial intelligence computing company earned record revenue from its Gaming, Data Center and Professional Visualization platforms for the first quarter ended May 2, 2021.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Sustainable-Global-Equity-Fund-June-2021.pdfMarch, 2021
For the first quarter, the portfolio outperformed its benchmark1 by 3.8%. Gains realised from stock selection more than offset the value lost from country allocations. Key sources of positive active return included stock selection in the United States, an exposure to Taiwan, and stock selection in Denmark. Leading advances within these markets respectively included a position in AGCO, a holding in Hon Hai Precision Industry, and an investment in AP Moller - Maersk. Detractors included an opportunistic exposure to Turkey, an opportunistic exposure to Brazil, and stock selection in Sweden. Leading declines within these markets in turn included a position in Turkiye Is Bankasi, a holding in Cia Energetica de Minas Gerais, and an investment in Lundin Energy.
Key Holdings
Positive
‐ Our overweight exposure to Agco Corp was rewarded with 46 basis points of active return. Share prices of the U.S. agricultural machinery manufacturer climbed 39% over the quarter as on a series or positive developments. The company released favorable financial results for fourth quarter of 2020, which included an increase of approximately 8.1% in net sales compared to the fourth quarter of 2019. The company’s newly launched Valtra G Series, a compact multipurpose tractor, was recently awarded the Red Dot Design Award 2021, a recognition reserved only for highly innovative products of exceptional quality.
Negative
‐ Our overweight to Chemed Corp, cost the portfolio 27 basis points as share prices fell, down 14% for the quarter. Chemed operates through two wholly-owned subsidiaries, VITAS, a provider of hospice care, and Roto-Rooter, a commercial and residential plumbing service. Share prices fell after the company reported a year-over-year decline in revenue. A decreased ability to access nursing homes, a major acquisition source for its hospice care business, adversely impacted patient volume and revenues.
December, 2020
For the fourth quarter, the portfolio underperformed its benchmark by 0.8%. Losses realised from stock selection more than offset the value gained from country allocations. Key sources of negative active return included stock selection in the United States and the Netherlands, and combination of stock selection and an underweight position in France. Leading declines within these markets respectively included a position in Zoom Video Communications, a holding in Koninklijke Ahold Delhaize, and a lack of exposure to LVMH Moet Hennessy Louis Vuitton. Contributors included stock selection in Germany and exposures to South Korea and China. Leading advances within these markets in turn included a position in Samsung Electronics, a holding in VERBIO Vereinigte BioEnergie, and an investment in Baidu. Key Holdings2
Positive
‐ Our exposure to Samsung Electronics was rewarded with 47 basis points of active return. Share prices of the world’s largest smartphone and memory-chip maker climbed 39% over the quarter as sales of memory chips for data centers and consumer electronics registered in the double digits. In addition, Samsung responded to the COVID-19 health crisis with a string of successful pandemic-inspired innovations, including a new Galaxy smartphone with better webcams for video recording and calling.
Negative
‐ Our overweight to Zoom Video Communications cost the portfolio 33 basis points of active return. Despite favorable third quarter financial results, stock prices fell 28% as investors rotated out of pandemic winners on vaccine-induced enthusiasm. Zoom remains the category leader for professional calls, yet with the potential eradication of the virus in the foreseeable future, the sustained reliance on video chatting tools and platforms is less certain.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Sustainable-Global-Equity-Fund-December-2020.pdfSeptember, 2020
For the third quarter, the portfolio outperformed its benchmark1 by 72 basis points. Gains realised from stock selection more than offset the value lost from country allocations. Key sources of positive active return included stock selection in Japan, a combination of stock selection and an underweight position in the United Kingdom, and stock selection in Germany. Leading advances within these markets respectively included a position in NTT Docomo, a lack of exposure to Royal Dutch Shell, and an investment in Verbio Vereinigte BioEnergie.
Detractors included stock selection in the United States, opportunistic exposure to Turkey, and a combination of stock selection and an overweight position in New Zealand. Leading declines within these markets in turn included a lack of exposure to Tesla, a holding in Turkiye Is Bankasi, and an investment in A2 Milk.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/CFS-Acadian-Wholesale-Sustainable-Global-Equity-Fund-September-2020.pdfticker: FSF0710AU
commentary_block: Array
factsheet_url:
QUARTERLY FACTSHEET
https://www.acadian-asset.com/au/wholesale-sustainable-global-equity-fund
release_schedule: Quarterly
fund_features:
The Acadian Wholesale Sustainable Global Equity Fund (the Fund) uses quantitative modelling and fundamental insights to identify socially responsible global equity stocks and reduce exposure to carbon intensive companies. The investment approach is both multi-faceted and highly adaptable, which allows Acadian to take advantage of attractive stocks opportunities as they arise. Acadian casts a wide net to discover the most attractive investment opportunities for inclusion in the portfolio, analysing more than 40,000 stocks daily.
- Analyses more than 40,000 stocks daily to uncover opportunities and find hidden value
- Systematic, bottom-up analysis converts insights into risk and return forecasts
- Shares are selected using Environmental, Social and Governance (ESG) investment criteria and aim to reduce exposure to carbon intensive companies.
manager_contact_details: Array
asset_class: Foreign Equity
asset_category: Large Value
peer_benchmark: Foreign Equity - Large Value Index
broad_market_index: Developed -World Index
structure: Managed Fund