September, 2023
For the quarter, the Fund posted a return of negative 0.78% and the broad market returned negative 0.43% as measured by the MSCI World ExAustralia Index in AUD. Uncertainty was evident through much of the quarter, with markets swinging up and down throughout but ultimately declining for the period.
Absolute return was mixed across sectors, with the largest detractions coming from utilities and communication services. Electric utilities were primarily responsible for the drag on return from the utilities sector, which saw valuations broadly pressured due mainly to rising interest rates. Rising yields tend to negatively affect utilities due to a view that they act as "bond proxies", however, in contrast to bonds utility companies also have growth, often at or above mid-single digits, which offsets the rate impact. The drag on return from communication services came primarily from poorly performing diversified telecommunications names.
The largest positive contribution to relative return came from information technology. Stock selection within technology hardware storage and peripherals names was the primary driver of performance, as within the segment the fund had exposure to the top performing name in the benchmark and was underexposed to the second worst performer. Underweight allocation to the sector aided performance as well, with information technology having the second worst return in the index for the quarter. On the negative side, stock selection within some diversified telecommunications holdings that lagged for the quarter detracted the most from relative performance.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/GESYU-Quarterly-Fund-Update-2309.pdfAugust, 2023
For the month of August, the Fund posted a return of 1.3% while the broader market returned 1.6% as measured by the MSCI World Ex Australia Index in AUD. The Fund was protective on the downside when markets fell but ended slightly behind the benchmark after a few AI related mega-cap stocks in the index took off at month end, riding a rebounding tailwind. Low beta benefitted the Fund during the month, while negative exposure to medium-term momentum detracted.
Absolute return was positive in most sectors, with the largest contributions coming from information technology and health care. Return in information technology came mostly from a communications equipment holding that saw an outsized return for the month. Within health care, pharmaceutical stocks primarily accounted for performance.
On a relative basis, the Fund finished the month slightly behind the broad market benchmark and slightly ahead of the MSCI World High Dividend Yield Index. Sector results were mixed, with the largest contribution coming from information technology and the largest detraction coming from utilities. Stock selection drove return in information technology, primarily due to underexposure to a technology and hardware stock that suffered heavily when markets fell despite rallying at month end. The drag on return from utilities was attributable to an overweight allocation, as the sector was the worst performer in the index.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/GESYU-Monthly-Fund-Update-2308.pdfJuly, 2023
Global equity markets were positive in July, with the Fund posting a return of 1.3% and the broader market returning 2.1% as measured by the MSCI World Ex Australia Index in AUD. A lower-than-expected June CPI report drove more traction for a soft-landing narrative that has been building all year. The month saw some slowing of the sharp big tech rally that has been fuelling market returns year to date on the back of a few high-profile earnings disappointments and valuation concerns in the cohort. The Fund's low beta and low volatility exposure remained headwinds to return.
Absolute return was positive in almost all sectors, with financials contributing by far the most to performance. Banks drove performance for the sector, as the dissipation of concerns following the turmoil in the industry earlier this year continued to accelerate, and thus far the regulatory response to the crisis has remained measured. Furthermore, strong 2Q earnings for select holdings showcased resilient profitability and healthier-than-feared credit quality.
Relative return was negative for the month, as the Fund modestly lagged the broad market benchmark as well as the MSCI World High Dividend Yield Index. Communication services was by far the largest detractor to return, owing mostly to stock selection within diversified telecommunications companies. Recent scrutiny of major U.S. telecoms regarding the use of lead sheathed cables weighed on shares through the month. Conversely, financials contributed meaningfully to relative performance on the back of exposure to a few banks and insurance names.
Among the largest individual contributors to return were AbbVie and Iron Mountain. AbbVie is a global pharmaceutical company that develops and markets drugs in specialty therapeutic areas such as immunology, oncology, and virology, among others. Shares rose in response to a positive 2nd quarter earnings report which showed well-balanced growth across multiple therapeutic areas. In particular, the strong sales performance for AbbVie's new immunology drugs Skyrizi and Rinvoq helped to alleviate concerns around biosimilar competition for blockbuster Humira.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/GESYU-Monthly-Fund-Update-2307.pdfJune, 2023
Global equity markets rose during the quarter, though surging indexes painted a misleading picture, as market leadership continued to be astoundingly narrow. A handful of mega-cap tech stocks that have seen multiples blow out on the back of AI mania accounted for the majority of broad market return.
The Fund recorded positive absolute returns in most sectors, with Information Technology by far the biggest contributor, followed by Industrials and Consumer Discretionary. Information Technology was buoyed primarily by technology hardware and storage names and a semiconductor stock that benefitted from the AI hype tailwind. Returns in Industrials came largely from electrical equipment companies and trading companies and distributors. Consumer Discretionary performance was driven by a restaurant name that outperformed on strong earnings.
On a relative basis, the Fund finishing behind the broad MSCI World ex Australia benchmark, though it outperformed the MSCI World High Dividend Index. Communication Services was the largest detractor to relative returns due to stock selection, underperformance came primarily from exposure to a diversified telecommunications name that lagged along with very strong returns in two interactive media and services companies that are outside of our investable universe due to not paying a dividend. Information Technology was the next biggest drag, owing primarily to an underweight allocation, as the sector was the top performer in the index. Underexposure to a technology hardware storage and peripherals name that saw an outsized return for the quarter also detracted meaningfully.
Among the largest individual contributors to return were Broadcom and Restaurant Brands International. Broadcom is a designer and manufacturer of digital and analog semiconductors focused on connectivity. It also develops and maintains software for mainframe applications. Shares outperformed on continued support and backlog for enterprise network upgrade. Also fuelling the rise has been growing expectations surrounding needed investment in networking to support the nascent AI use cases surrounding generative AI. Broadcom returns cash to shareholders via an attractive dividend with a target of paying out 50% of free cash flow. The balance of cash generation is used to fund debt reduction, share repurchases, and/or accretive M&A. Restaurant Brands owns the Tim Hortons, Burger King, Popeye's Louisiana Kitchen, and Firehouse Subs quick service restaurant chains.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/GESYU-Quarterly-Fund-Update-2306.pdfMay, 2023
Turmoil spilled into May, as First Republic became the 3rd U.S. bank failure this year. Despite uncertainty around a U.S. debt ceiling resolution and continued warnings of a looming recession, mega-cap tech stocks aggressively decoupled from the broader market, posting outsized returns driven by AI mania. The Fund's high dividend yield and low beta were headwinds to Index relative returns during the month.
Absolute returns were negative for the month with the largest detractions coming from Financials and Materials, while holdings in Information Technology and Consumer Discretionary were positive contributors. Financials continue to face headwinds following banking failures, and banks and insurance companies primarily accounted for performance in the sector.
The negative return in Materials was largely driven by a chemicals company that came under pressure due to weaker than expected earnings and guidance. On a relative return basis, the Fund finishing behind the broad MSCI World ex Australia benchmark, though it outperformed the MSCI World High Dividend Index for the month. Communication Services was the largest detractor to relative returns, with the bulk of the underperformance attributable to very strong returns in two interactive media and services companies that are outside of the Fund’s investable universe due to not paying a dividend. Financials were the next largest drag on relative returns, owing mostly to holdings within banks and insurance companies.
File:April, 2023
Global equity markets were positive in April, as sentiment appeared to remain driven by investors betting on the timing of an end to interest rate hikes and the likelihood of a recession in the near term.
The banking turmoil seen in March looked to be easing through most of the month but crept back into headlines near month end. Absolute returns were positive in all sectors except for Information Technology, with the largest contributions coming from Health Care and Financials. Within Health Care, pharmaceuticals were the primary driver of return, while Insurance stocks were the main driver of return within Financials. On a relative return basis, the Fund finished roughly in-line with the broad MSCI World ex Australia benchmark and ahead of the MSCI World High Dividend Yield Index.
Consumer Discretionary was the largest contributor to relative return owing mostly to stock selection, with the most impact coming from having no position in an automobile stock that was pressured heavily during the month. The biggest detractor to relative return was stock selection within Information Technology, as exposure to a few underperforming semiconductor stocks was a drag on performance.
File:March, 2023
Despite shifting sentiment, equity markets finished strong in the first quarter of 2023. A steep, growth-led rally kicked the year off on the back of disinflation and a perceived rising likelihood of an economic soft landing. Hotter-than-expected January PPI numbers and a reassessment upwards of peak-rate expectations cooled sentiment in February, reversing the bull run. The end of the quarter was defined by the collapse of Silicon Valley Bank, Signature Bank, and Credit Suisse and subsequent intense scrutiny of industry peers. While the crisis drove significant outflows from financials, it also accelerated a rally in mega-cap tech stocks that buoyed markets into quarter end, with investor positioning signalling broad expectations for a dovish pivot by central banks in response to systemic risk in the banking system. broad expectations for a dovish pivot by central banks in response to systemic risk in the banking system.
All sectors except for Financials contributed to the Fund’s positive absolute return in Q1, with the largest contributions coming from Information Technology and Industrials. Semiconductors drove return within IT, as investors looked through current industry inventory digestion to a potential rebound in the second half of the year. Performance in Industrials was fuelled by air freight and logistics companies.
On a relative return basis the Fund lagged the broad MSCI World ex Australia benchmark, although it did finish ahead of the MSCI World High Dividend Yield Index. The biggest detractions to relative performance came from Information Technology, Consumer Discretionary, and Financials. An underweight sector allocation and underexposure to a technology hardware storage name that had an outsized return for the quarter fuelled underperformance in IT, which was the best performing sector in the benchmark. Stock selection primarily accounted for the relative return in Consumer Discretionary names, with the largest detractions coming from an automobile stock and a broadline retail stock that are outside our investable universe due to not paying a dividend. Banks accounted for most of the underperformance within Financials due to stock selection, as the Fund had overweight exposure to regional bank stocks that sold off heavily at quarter end in sympathy with the industry following the high-profile failure of a few banks with atypical balance sheets. We remain confident in our bank holdings, with the view that there is very low risk of systemic contagion and that the failures in the sector were driven by idiosyncratic risks at a few problematic banks. By comparison, portfolio bank holdings are well capitalized with low-cost, diverse depositor bases and conservative growth profiles.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/GESYU-Quarterly-Fund-Update-2303.pdfFebruary, 2023
Stocks fell in February, giving back some of January's gains. The weakest results came from the Energy, Healthcare, and Consumer Staples sectors while the Materials, Financials, and Communications Services sectors provided modest gains. In January, U.S. inflation slowed for the seventh consecutive month, but not by enough to meet expectations. Despite the continued reduction in inflation, the Federal Reserve has indicated that a policy pivot is unlikely to occur in 2023.
Japan continued to see rising wages and inflation grew to 4.3% in January. Inflation continued to ease in the euro zone, PMI indicators rose, and consumer confidence increased. The European Commission published its Winter 2023 Economic Forecast indicated that the EU economy is likely to avoid a recession. Absolute returns were positive in all sectors except for Consumer Discretionary, with the largest contributions coming from Information Technology and Financials. Semiconductors drove performance in Information Technology, owing largely to one holding in particular that rose on a strong earnings report. Banks and insurers accounted for return within Financials, with contributions spread broadly across holdings.
On a relative performance basis, the Fund finished slightly ahead of both the broad market MSCI World ex Australia benchmark as well as the MSCI World High Dividend Index. Health Care was the largest contributor to relative return on the back of stock selection. The contribution came primarily from exposure to a biotech stock that was one of the top performers in the index for the month. Energy was the next biggest aid to relative performance due to stock selection within oil, gas and consumable fuel names. A majority of industry companies in the index struggled during the month, and the portfolio's exposure to a handful of out-of-benchmark holdings that held up well aided relative return.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/GESYU-Monthly-Fund-Update-2302.pdfJanuary, 2023
Stocks rose sharply in January on improving sentiment and growing hopes for an economic soft landing. The Consumer discretionary, Communications Services, Materials, and Information Technology sectors had the strongest gains. Health care, Utilities, and Consumer Staples lagged. U.S. inflation slowed for the sixth consecutive month in December and the annualised personal consumption expenditure decelerated to 3.9%, which is now below the federal funds rate. Despite the good inflation news, the Federal Reserve indicated a policy pivot in 2023 was unlikely. The euro zone defied expectations and experienced faster growth than the U.S. or China in 2022 and appeared on track to avoid a recession in 2023. Inflation eased in the euro zone, PMI indicators rose, sovereign spreads dropped, and sentiment indicators jumped. Japan saw wages rising and inflation growing above a 3% rate. The Bank of Japan dashed expectation of lifting its interest rate target any further.
The International Monetary Fund upgraded its economic outlook, citing moderating inflation and energy prices and China's reopening. It was a positive start to the year for global equities despite a broadly disappointing earnings season featuring struggling margins and underwhelming guidance, cont
nued disinflation and a perceived rising likelihood of an economic soft landing fueled risk-on sentiment. The month saw many growth names that were among the most punished in 2022 sharply rebound, especially within big tech. As is expected during rapid, growth-led rallies, the Fund lagged during the month, with negative exposure to market sensitivity as a headwind. Absolute returns was positive in most sectors, with the largest contributions coming from Financials and Materials. Banks and insurance companies primarily accounted for return within Financials, while a strong month for chemical stocks drove performance within Materials. On a relative return basis, the Fund finished behind the broad MSCI World ex Australia benchmark, though it outpaced the MSCI World High Dividend Yield index by a solid margin.
The biggest detractions to relative returns came within the Consumer Discretionary and Information Technology sectors. Consumer Discretionary underperformance came from a mix of stock selection and sector allocation, as not owning a few names with outsized returns that are outside our investable universe due to not paying a dividend and an underweight to the sector, which was the strongest in the benchmark. Stock selection accounted for relative performance in Information Technology, owing mostly to not owning a semiconductor stock with an outsized return and exposure to an IT services company that struggled during the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/GESYU-Monthly-Fund-Update-2301.pdfDecember, 2022
Global markets were positive in Q4, equities rose from the outset of the quarter on more speculation of a downshift in central bank rate hiking, and momentum was sustained by a softer-than-expected October CPI print. As expected, the Fed raised rates by 50bps instead of 75bps in December, though markets faded into year-end with recession concerns as an overhang. Value led the quarter's rally handily, underpinning a continued rotation and investor preference for strong business fundamentals as monetary conditions, though slowing in their tightening, remain firmly restrictive.
The fund performed well during the quarter, aided by its high exposure to dividend yield. All sectors contributed to positive absolute returns, with the largest contributions coming from Financials and Health care. Performance within Financials was driven primarily by insurers, with strong contributions from banks as well. Pharmaceutical companies accounted for the majority of return within Health care on the back of a strong earnings season for several holdings.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/GESYU-Quarterly-Fund-Update-2212.pdfNovember, 2022
Global Equities rose in November, with the Fund posting a return of 3.2% and the broader market returning 2.0% as measured by the MSCI World Ex-Australia Index in AUD. The peak inflation narrative that struggled to gain traction in the summer finally found support in the form of a softer-than-expected October CPI report. Bullish sentiment intensified into month end as the Fed signaled the possibility of a downshift in hiking pace as early as December, which was perceived as dovish despite a reiteration of "higher interest rates for longer" rhetoric.
The Fund outpaced its benchmark during the rally, aided by its high dividend yield exposure and investors' continued preference for value stocks. Absolute return was positive in all sectors, with the largest contributions coming from information technology and Utilities. Return within information technology came almost entirely from semiconductors, which saw outsized returns for the month. A mix of electric and multi utilities holdings contributed the most to return for the utilities sector.
On a relative basis, it was a good month for the Fund as it finished ahead of both the broad market benchmark and the MSCI World High Dividend Yield Index. Stock selection within information technology was responsible for most of the outperformance, owing primarily to being underweight a technology hardware, storage and peripherals holding that struggled and having exposure to select semiconductor names. Consumer discretionary was a contributor as well, as having no exposure to underperforming internet and direct marketing and automobile stocks aided return.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Epoch-Global-Equity-Shareholder-Yield-Unhedged-Fund-Update-2211-1.pdfOctober, 2022
Bouncing off deeply depressed sentiment at the end of last month, October saw global equity markets rise strongly. Despite a hotter-thanexpected September CPI report and underwhelming earnings from big tech names, markets rose as investors once more began speculating on a curtailing of interest rate hikes. Expected inflation relief from supply chain normalisation and central bank discussions on slowing the pace of tightening were among talking points supporting the bullish move. It was a strong month for the fund, as it managed to outperform the benchmark during the rally. All sectors contributed positively to absolute returns during the month, with the largest contributions coming from Financials and Health care.
The contribution from Financials was carried by a very strong month for banks and insurance firms. Pharmaceutical stocks drove performance within Health care, buoyed largely by one holding that saw shares rise on the announced commercialisation of a new cancer mRNA vaccine. On a relative return basis, it was a good month for the fund as it outperformed both the broad MSCI World ex Australia benchmark and the MSCI World High Dividend Yield Index. The largest contributors to relative returns were Consumer Discretionary followed by Financials and Communication Services.
The contribution from Consumer Discretionary was due to a mix of sector allocation and stock selection. An underweight to the sector along with having no position in an internet and direct marketing stock and an automobile stock that both fell significantly during the month drove performance. Relative performance in Financials came primarily from stock selection, with exposure to select insurance companies contributing most. Within Communication Services stock selection was primarily responsible for outperformance, as having no position in an interactive media and services holding that struggled during the month accounted for relative return.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Epoch-Global-Equity-Shareholder-Yield-Unhedged-Fund-Update-2210.pdfSeptember, 2022
Global equities finished the quarter with slightly positive returns, though the quarter saw significant swings in sentiment, beginning with a tech led rally and ending with a decline into quarter end. The early bull run came after June rate hikes remained in-line with expectations, fueling a narrative of dovish pivoting by central banks and igniting risk-on sentiment. In response, monetary policy makers swiftly grounded markets with messaging that elevated rates are here to stay until inflation is curbed, regardless of looming recession risks. Markets took heed, as volatility ruled the quarter from midAugust to quarter end, with equities falling.
The Fund was protective on the downside during the second half of the quarter but finished behind due to underperformance during the growth dominated rally in July. The largest detractors from absolute returns over the quarter came from Health Care and Communication Services. Health care's poor performance was derived largely from two pharmaceutical holdings. Looming litigation around a drug manufactured by both companies put share prices under intense pressure during the quarter. Diversified telecommunications stocks were primarily responsible for communication services' drag on return.
On a relative return basis, the Fund underperformed the broad MSCI World ex Australia benchmark and finished in-line with the MSCI World High Dividend Yield Index. Health Care was the biggest drag on relative performance due to the stock specific issues mentioned above. Consumer Discretionary was the next largest detractor, owing mostly to strong performance in an automobile stock and an internet direct marketing stock that are outside the Fund's investable universe. An underweight allocation also detracted, as Consumer Discretionary was the only positive sector in the index for the quarter.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Epoch-Global-Equity-Shareholder-Yield-Unhedged-Fund-Update-2209.pdfAugust, 2022
The Fund posted a negative return of 1.9% in August. Equities came under pressure again during the month, and the broad market as measured by the MSCI World Index Ex-Australia fell. July's exuberance bled into the early part of the month, as the peak-inflation narrative drove risk-on sentiment in hopes of a dovish policy pivot from central banks. However, markets turned negative when remarks from Fed officials made clear that monetary conditions will continue tightening until inflation is lowered to target levels.
The Fund provided a measure of downside protection during the sell-off, as it's done through most downturns this year. On an absolute basis, most sectors were negative for the month, with the largest drags on return being Health care and Information Technology. Within Information Technology semiconductors were primarily responsible for performance, owing partially to perceived softening of demand in consumer-focused end markets. Pharmaceuticals largely accounted for the negative return in Health care. On a relative performance basis, the Fund finished with a better return than both the broad market benchmark and the MSCI World High Dividend Yield Index.
Most sectors were positive contributors to relative returns, with Consumer Discretionary and Utilities contributing most. Stock selection drove performance in Consumer Discretionary, owing mostly to an out-ofbenchmark hotels, restaurant, and leisure holding that had a strong month. Allocation was responsible for performance in Utilities, as the Fund is overweight in the sector which was one of the most resilient through the challenging month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Epoch-Global-Equity-Shareholder-Yield-Unhedged-Fund-Update-2208.pdfApril, 2022
The Fund posted a return of 1.5% in April despite the tough market environment.
The largest sector contributor to the portfolio’s absolute returns was Consumer Staples. Health Care was the second biggest contributor on the back of several pharmaceutical holdings. Information Technology was the biggest detractor due mostly to poor performance in semiconductor names, which continue to struggle with supply chain issues. On a relative performance basis, it was another strong month for the Fund as it led the broad market MSCI World benchmark by a wide margin and finished slightly behind the MSCI World High Dividend Index.
All sectors were positive contributors to relative performance, with stock selection in Consumer Discretionary and Communication Services names bolstering returns most significantly. Within Consumer Discretionary, having no holdings in internet and direct marketing stocks, the worst performing segment, was the biggest boost to performance. Exposure to select diversified telecommunication services stocks accounted for the contribution from Communication Services.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/GESYU-Monthly-Fund-Update-2204.pdfSeptember, 2021
The Fund posted a return of 1.9% for the third quarter. The quarter continued to see a push and pull between growth and value along with sensitivity to interest rates and commentary around COVID variants. The market environment was like last quarter with sentiment flip-flopping numerous times.
Almost all sectors contributed to performance on an absolute basis. Good returns for portfolio holdings in Financials, Information Technology and Utilities led to some of the largest contributions on the sector level and were broad-based across industries. On the negative side, Consumer Discretionary slightly detracted due to a mix of positions across subsectors. By country, the U.S. and Canada contributed the most while Korea detracted. The Fund lagged the broad-market benchmark for the quarter, although it outperformed the dividend-paying universe represented by the MSCI World High Dividend Index. Relative returns were attributable to being underweight some semiconductor stocks along with certain large software and hardware stocks that had performed well during the period. Several pharmaceutical holdings also detracted as did not owning select interactive media and services and entertainment companies that are outside of our investable universe because they do not pay dividends. On the positive side, stock selection in Materials aided returns driven by strong performance from one of our agrochemical holdings. On a country basis, the U.S. and Germany detracted while Canada modestly contributed.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Epoch-Global-Equity-Shareholder-Yield-Unhedged-Fund-Update-2106-1.pdfJune, 2021
The Fund posted a strong positive return of 6.1% for the June quarter. The quarter was broadly characterised by shifting market sentiment around the reopening/reflation and value vs. growth trades. We are happy with the upside participation as the portfolio continued to benefit from a more widespread recovery across global equities but acknowledge that the strategy may lag during strong market rallies.
All sectors added to absolute performance. Robust returns for portfolio holdings in industrials and information technology led to some of the largest contributions at the sector level, as the strategy's air freight and logistics, software and hardware positions performed well. Healthcare also supported absolute returns. By country, the U.S. contributed strongly along with Canada and the United Kingdom. There were no notable detractors.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Epoch-Global-Equity-Shareholder-Yield-Unhedged-Fund-Update-2106-1.pdfDecember, 2020
Markets rose in the fourth quarter stemming from progress on the coronavirus vaccines and deployment, more certainty surrounding the U.S. presidential election and prospects on the second stimulus plan. The portfolio generated a positive absolute return of 3.7%. We remain committed to maintaining a portfolio of high-quality companies that are well-positioned to deliver their shareholder yield characteristics during these volatile markets. We are happy with the upside participation but acknowledge that the strategy may lag during record-setting market rallies.
During the quarter, the majority of sectors contributed positively to absolute performance. Strong returns for portfolio holdings in financials and information technology led to some of the largest contributions on the sector level as the strategy's semiconductor, insurance and bank holdings performed well. Materials and energy also contributed positively. Health care, consumer staples and utilities detracted. Most countries contributed positively with the U.S. the strongest contributor by far while the U.K. detracted.
The portfolio's focus on dividend-paying stocks was under pressure during the last few weeks of the quarter as confidence about a recovery led investors to focus on growth and cyclical stocks as opposed to yield. Utilities detracted from relative performance, driven by both stock selection and an overweight since utility companies were expected to benefit less from the economic recovery (a result of the stimulus package and the vaccine rollout). Stock selection in communication services, health care and industrials also detracted.
On the positive side, stock selection in information technology was the most notable contributor as semiconductor and technology hardware holdings in the portfolio outperformed. On a country basis, the U.K. was the largest detractor, followed by the U.S., while an overweight to Korea and Taiwan modestly contributed due to select holdings with strong returns.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Epoch-Global-Equity-Shareholder-Yield-Quarterly-Update-Q4-2020.pdfasset_class: Foreign Equity
asset_category: Large Value
peer_benchmark: Foreign Equity - Large Value Index
broad_market_index: Developed -World Index
manager_contact_details: Array
ticker: GSF0002AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
https://www.gsfm.com.au/unlisted-funds/epoch-global-equity-shareholder-yield-funds/
QUICK LINKS -> Quarterly Fund Updates
fund_features:
Epoch Global Equities Shareholder Yield Fund Unhedged aims to generate superior risk adjusted returns with a dividend yield that exceeds the dividend yield of the benchmark. The Fund pursues attractive total returns with an above average level of income by investing in a diversified portfolio of global companies with strong and growing free cash flow. Companies in the portfolio possess managements that focus on creating value for shareholders through consistent and rational capital allocation policies with an emphasis on cash dividends, share repurchases and debt reduction-the key components of shareholder yield.
structure: Managed Fund