October, 2020
The Fund generated a negative return of 3.6% during October. Markets continued to slip in October, driven by fears about the coronavirus pandemic, reinstated lockdowns in Europe and the U.S. presidential election. On an absolute basis, health care and consumer staples were the most notable detractors. Utilities contributed as investors started to factor in the potential benefits of a Democrat win, which could deliver a push towards renewables and tax policies that are more favourable to utilities than other sectors. Consumer discretionary also modestly contributed. By country, Germany and the U.K. detracted the most, while there were no notable contributors.
Stock selection in health care was the largest detractor from relative performance, due to the strategy's exposure to the pharmaceutical subsector as our pharma holdings were challenged along with the broader industry on uncertainty related to potential regulatory reform leading into the U.S. elections. Stock selection in consumer staples and communication services also detracted. On the positive side, strong stock selection in information technology contributed, further buoyed by an underweight to the sector that was challenged during the month. The utilities sector also contributed positively, driven by an overweight, as utilities was the best performing sector in the benchmark. By country, the U.S. contributed positively while the U.K. detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/Epoch-Global-Equity-Shareholder-Yield-Hedged-Fund-Monthly-Update-2010-1.pdfSeptember, 2020
The Fund generated a return of -1.7% during September. The broader market turned as fears about the coronavirus pandemic resurfaced and the focus turned to the upcoming U.S. presidential election. On an absolute basis, utilities, materials and consumer discretionary stood out with positive contributions. Energy and financials were the largest detractors. By country, the U.S. followed by the U.K. contributed, while Germany detracted. The portfolio provided downside protection as the month showed weakness in growth/momentum stocks that had rallied strongly since March's lows. The utilities sector was one of the strongest contributors to relative returns overall, driven by an overweight to the defensive sector as well as stock selection. Strong stock selection in information technology also helped, particularly lifted by selection in technology hardware and semiconductor companies. Stock selection in consumer discretionary and communication services further contributed. By country, stock selection in the U.S. followed by the U.K. and Canada contributed while Japan detracted.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/Epoch-Global-Equity-Shareholder-Yield-Hedged-Fund-Monthly-Update-2009.pdfticker: GSF0002AU
commentary_block: Array
factsheet_url:
https://www.gsfm.com.au/unlisted-funds/epoch-global-equity-shareholder-yield-hedged/
Monthly Fund Update, first 2 paragraphs enough
asset_class: Foreign Equity
asset_category: Large Value
peer_benchmark: Foreign Equity - Large Value Index
broad_market_index: Developed -World Index
structure: Managed Fund