September, 2023
•Stock selection was positive in 10 of the 19 sectors in our internal sector classification scheme during the quarter.
•An overweight position in AbbVie, a US-based pharmaceutical company, contributed to performance over the quarter. The stock gained as the company reported strong quarterly results ahead of consensus estimates in both revenue and net income. The management also raised its guidance and expressed confidence in raising it further in 2024.
•Our underweight position in Amgen, a US multinational biopharmaceutical company, detracted from relative returns over the quarter. The stock gained after the company posted strong quarterly results that saw it beat expectations on generally strong product revenues across the board. Revenues grew, with lower operating expenses and higher non-operating expenses. The management also raised its full-year guidance, which was received well by investors.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/monthly-commentary-jpmorgan-global-research-enhanced-index-equity-fund-hedged-2-1.pdfAugust, 2023
•Stock selection was the primary driver of performance and was positive in 13 of the 19 sectors in our internal sector classification scheme this month.
•An overweight position in Eaton, an Ireland-based power management company, contributed to performance over the month. The company’s initiative to increase its prices was well received by its distributors. This led to optimism around the stock as its margins are expected to improve.
•An overweight position in NXP Semiconductors, a Netherlands-based semiconductor solution provider, detracted from returns over the month. Shares fell as investors questioned the outlook for the semiconductor industry in the face of a weaker Chinese economy impacting global growth.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/monthly-commentary-jpmorgan-global-research-enhanced-index-equity-fund-hedged-1-3.pdfJuly, 2023
•Stock selection was positive in 8 of the 19 sectors in our internal sector classification scheme this month.
•An overweight position in AbbVie, a US-based pharmaceutical company, contributed to performance over the month. The company posted strong second-quarter results, with revenues beating consensus estimates across most of its products. This led to a revision of its earnings guidance and a rise in its stock price.
•An overweight position in Chipotle Mexican Grill, a US-based Mexican restaurant chain, detracted from performance over the month. Shares came under pressure after the company gave guidance on growth in thirdquarter same-store sales and margins below consensus estimates. This led sell-side analysts to cut their price target on the stock.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/monthly-commentary-jpmorgan-global-research-enhanced-index-equity-fund-hedged-19.pdfJune, 2023
•Stock selection was the primary driver of performance and was positive in 12 of the 19 sectors in our internal sector classification scheme this quarter.
•An underweight position in Walt Disney, a US-based mass media and entertainment conglomerate, contributed to relative returns over the quarter. The company reported mixed results and guidance in their latest quarterly earnings results. Although the CEO is implementing necessary changes to improve productivity and efficiencies, Walt Disney is facing challenges, along with its traditional media peers. The company saw losses in subscribers for Disney+ in its key market, the US, and Disney’s linear networks continue to witness an acceleration in subscriber declines.
•An overweight position in AbbVie, a US-based pharmaceutical company, detracted from performance over the quarter. The stock declined on account of weak quarterly results, as revenues declined significantly for its two products, Rinvoq and Skyrizi. The overall combined miss for both products was about USD 100 million, or about 5% of combined sales, but was largely driven by one-off factors.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/monthly-commentary-jpmorgan-global-research-enhanced-index-equity-fund-hedged-18.pdfApril, 2023
Month in Review
•Stock selection was the primary driver of performance and was positive in 13 of the 19 sectors in our internal sector classification scheme this month.
•An overweight to Chipotle, an American chain of fast-casual restaurants, contributed to monthly returns. The company reported quarterly results ahead of consensus, fueled by better-than-expected same-store sales growth. Restaurant traffic grew by 10% despite higher menu prices, confirming the company’s pricing power in the current economic environment. •An overweight to NXP Semiconductors, a Dutch semiconductor designer and manufacturer, detracted from monthly returns. After performing strongly in January, shares gave back performance over concerns around the outlook for semiconductor spending in the face of an uncertain economic environment.
February, 2023
Month in Review
•Stock selection was the primary driver of performance and was positive in 10 of the 19 sectors in our internal sector classification scheme this month.
•An overweight position in BP, the oil major, contributed to relative returns. Shares surged after they announced less money would be spent on low returns projects and more would be returned to shareholders.
•An overweight position in ConocoPhillips, an American energy company, detracted from returns over the month. While results were broadly in-line with consensus expectations, the share price fell in reaction to the scaling back of the Alaska/Willow project compared to previous guidance.
January, 2023
Month in Review
•Stock selection was the primary driver of performance and was positive in 11 of the 19 sectors in our internal sector classification scheme this month.
•An underweight position in Pfizer, an American multinational pharmaceutical and biotechnology corporation, contributed to relative returns. Despite posting better than expected quarterly profits, the shares fell amid a downbeat full year 2023 outlook. Management warned of a significant drop in its sales for the year on account of a decline in Covid-19 product sales, which was not well received by investors.
•An overweight position in NextEra Energy, the US utility company, detracted from performance over the month. The company reported solid quarterly results which came in slightly ahead of expectations but their guidance for 2023 was seen as disappointing. The company also announced that third party investigation into alleged illegal lobbying practices was completed with no adverse legal outcome. However, the President of their Florida utility business who was a key person of interest in the investigation announced they were stepping down. This was seen negatively by the market and shares fell around 9% on the day.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/monthly-commentary-jpmorgan-global-research-enhanced-index-equity-fund-hedged-15.pdfDecember, 2022
•Stock selection was positive in 11 of the 19 sectors in our internal sector classification scheme this quarter.
•An overweight position in Volvo, a Swedish automobile company, contributed to relative returns. The stock rallied as the company sales increased in December despite supply chain issues, as the lockdown in China had created shortages and production constraints for Volvo. Volvo is leveraging its first-mover advantage in electric trucks, as December witnessed a significant surge in sales of electric and rechargeable cars.
•A neutral position in Tesla, the US automotive & clean energy company, detracted from returns over the period. Shares have come under pressure in recent months as the company’s founder Elon Musk has been selling down his stake in Tesla to finance his highly controversial takeover of Twitter. Tesla shareholders are concerned this is distracting him from his role at Tesla. Shares came under further pressure as new data from China showed that Tesla registrations fell 26% during a week where overall electric vehicle registrations rose 58%, highlighting growing investor concern around intensifying competition.
November, 2022
•Stock selection was the primary driver of performance and was positive in 13 of the 19 sectors in our internal sector classification scheme this month.
•An overweight in NXP Semiconductors, a Dutch semiconductor designer and manufacturer, contributed to results. The share price recovered from the short-term weakness linked to the cautious earnings outlook.
•An underweight in Broadcom, a US semiconductor and infrastructure software provider, detracted from relative returns. The share price rose as the company’s proposed acquisition of cloud software company VMware was approved by the target’s shareholders.
October, 2022
•Stock selection was positive in 8 of the 19 sectors in our internal sector classification scheme this month.
•An overweight position in Netflix, an online subscription streaming service and production company, contributed to performance over the period. The company reported solid quarterly returns ahead of consensus estimates and guided to increased subscriber and revenue growth opportunities on the back of the ad-supported option launch in November.
•Not holding Amgen, an American multinational biopharmaceutical company, detracted from relative returns over the month. The company reported results ahead of consensus expectations, which were largely driven by its mature product Enbrel and good cost control.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/monthly-commentary-jpmorgan-global-research-enhanced-index-equity-fund-hedged-12.pdfSeptember, 2022
Stock selection was the primary driver of performance and was positive in 10 of the 19 sectors in our internal sector classification scheme this quarter.
An overweight position in Deere & Company, a US-based agricultural heavy machinery and equipment manufacturer, contributed to returns. The company reported third-quarter earnings results that missed market expectations. This was due to weaker margins, with supply chains being cited as the major issue. That said, the demand picture is still solid as farmers’ income remains robust and is expected to remain so throughout 2023.
An overweight position in Seagate Technology, a US-based data storage company, detracted from returns. The company downgraded its earnings estimates based on weaker economic trends in certain Asian regions, which have amplified customer inventory corrections and supply-chain disruptions. It also cited observing more cautious buying behaviour among global enterprises and certain US-based cloud customers amid ongoing macroeconomic uncertainties.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/monthly-commentary-jpmorgan-global-research-enhanced-index-equity-fund-hedged-10.pdfJuly, 2022
•Stock selection was the primary driver of performance and was positive in 12 of the 19 sectors in our internal sector classification scheme this month.
•An overweight position in Amazon, the US online retailer and technology company, contributed to performance over the month. Shares rose strongly as reported revenue and earnings came in ahead of expectations. Despite concerns over the macro environment, the company is not seeing any negative impact on its business.
•An overweight position in AbbVie, the US-based pharmaceutical company, detracted from performance over the month. Even as the company reported quarterly earnings in line with expectations, shares declined on forecasts of a “potential settlement” of litigation over a business unit’s past sales of opioid drugs.
June, 2022
• Stock selection was the primary driver of performance and was positive in 11 of the 19 sectors in our internal sector classification scheme this quarter.
• Our overweight to Bristol Myers Squibb, an American pharmaceutical company, contributed to returns over the quarter. The company received approval for a hotly anticipated cardiovascular drug, Camzyos, which was given with a list price ahead of expectations. In addition, the company announced plans to acquire Turning Point Therapeutics. The deal will expand its presence in the field of precision/targeted medicine and create synergies in oncology marketing. It was positively received by the market, which recognised it could represent decent value to the company, despite its premium.
• An overweight to Lyft, an American ride-sharing provider, detracted from quarterly returns. Despite posting first-quarter earnings and revenue ahead of consensus estimates, the stock declined as the company provided guidance of an increase in spending on driver incentives to counter a persistent labour shortage and soaring gas prices. Investors were perplexed, given the company’s lack of quantification of the magnitude of driver incentives
May, 2022
• Stock selection was positive in nine of the 19 sectors in our internal sector classification scheme this month.
• An overweight position in NXP Semiconductors, a Dutch semiconductor designer and manufacturer, contributed to relative returns over the month. The stock price rose as the company reported record sales and earnings that came in ahead of expectations. Investor sentiment was buoyed by management's anticipation for robust customer demand for the next quarter given companyspecific accelerated growth drivers.
• Our overweight position in Prologis, an American real estate investment trust, detracted from relative performance over the month. The stock came under pressure as Amazon, one of its largest clients, stated that it would be focusing more on efficiency than on increasing physical and staffing capacity, which sent the stock into a tailspin.
March, 2022
• Stock selection was the primary driver of performance and was positive in 9 of the 19 sectors in our internal sector classification scheme this month.
• Our overweight position in Deere & Company, an American agricultural heavy machinery and equipment manufacturer, contributed to relative returns over the month. The stock rose sharply as the company unveiled its latest innovative autonomous tractor, which is expected to disrupt the existing farming machinery industry. Additionally, the company continues to strive to expand its innovative solutions portfolio by inducting new technology companies into its startup collaborator programme.
• Our overweight position in Trane Technologies, the US industrial manufacturing company, detracted from quarterly returns. With rising geopolitical tensions and rising inflation globally, investors rotated away from consumer-linked sectors, such as industrials, and into more defensive names.
February, 2022
• Stock selection was the primary driver of performance and was positive in 10 of the 19 sectors in our internal sector classification scheme this month.
• An overweight position in Orsted, a Danish multinational power company, contributed to relative returns over the month. The stock rallied significantly in this turbulent environment as investors turned more optimistic on the company amid the geopolitical tensions, which could further accelerate the transition towards renewable sources of energy, thereby reducing the dependence on imported fossil fuels.
• Our overweight in Trane Technologies, the US industrial company and manufacturer of HVAC systems, detracted from performance. While fourthquarter results were better than expected, margins came in short, which was taken negatively by investors. Margin performance will be a key measure of success going into 2022 for the company.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/monthly-commentary-jpmorgan-global-research-enhanced-index-equity-fund-hedged-5.pdfNovember, 2021
Stock selection was the primary driver of performance and was positive in 11 of the 19 sectors in our internal sector classification scheme this month.
• An overweight position in AMD, an American multinational semiconductor company, contributed to relative returns. The stock rallied as the company announced that it had gained Meta Platforms as a data centre chip customer and unveiled plans for introducing a range of new chips that would help them to gain a significant share in supercomputing markets. The stock further gained as the company delivered solid third-quarter results, buoyed by strong sales and margin expansion across its business lines.
• Our underweight position in Pfizer, the American multinational pharmaceutical and biotechnology corporation, detracted from relative returns over the month. The stock rose as the company had a potential breakthrough with a possible new pill to fight Covid-19. Furthermore, the US FDA authorised booster shots as protection against new variants, thereby benefitting the company with a longer sales opportunity
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/monthly-commentary-jpmorgan-global-research-enhanced-index-equity-fund-hedged-4.pdfOctober, 2021
Stock selection was the primary driver of performance and was positive in 12 of the 19 sectors in our internal sector classification scheme this month.
• An overweight position in Norfolk Southern, the US-based transportation company, contributed to returns. The stock rallied after the company reported Q3 2021 earnings above expectations, with all of its business segments beating expectations, despite significant supply chain disruptions.
• Our overweight position in Volkswagen, a Germany-based auto manufacturing company, detracted from returns over the month. The company cut its outlook for deliveries, toned down sales expectations and warned of job cuts as a shortage of computer chips caused Europe's largest carmaker to report lowerthan-expected operating profit for the third quarte
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/monthly-commentary-jpmorgan-global-research-enhanced-index-equity-fund-hedged-2.pdfAugust, 2021
• Stock selection was positive in eight of the 19 sectors in our internal sector classification scheme this month. • Our overweight position in Charter Communications, the US telecoms company and major broadband provider, contributed positively to performance over the month. The company reported positive quarterly results, which saw key metrics such as residential subscription revenue and broadband adds all come in ahead of expectations – all signs management are executing well and setting the stage for growth beyond broadband.
• An overweight position in Mastercard, the US payments company, detracted from returns over the month. Despite delivering solid quarterly results ahead of consensus estimates, the stock performed poorly as the forecast for thirdquarter operating expenses was higher than expected and concerns regarding a delayed recovery in international travel and business activity weighed on investor sentiment. The company also faced a class action in the UK following a decision by the Competition Appeals Tribunal to allow a GBP 15 billion consumer claim, which was not well received by investor
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/monthly-commentary-jpmorgan-global-research-enhanced-index-equity-fund-hedged-1.pdfDecember, 2020
Stock selection was positive in eight of the 19 sectors in our internal sector classification scheme this quarter.
Our overweight position in AbbVie, the US based biopharmaceutical company, contributed positively to performance. The stock rose as the company reported better-than-expected third-quarter earnings and a 10% dividend hike as they delivered strong revenue growth in immunology, aesthetics and neuroscience. There was also a bullish tone at their immunology day in December where management lifted their revenue forecasts for 2025.
Our overweight position in Salesforce, the US cloud computing and software company, was negative for relative returns. The company posted solid results supported by strong revenue and profit growth, but shares fell after Salesforce announced its decision to purchase Slack Technologies in a USD 27.7 billion cash and stock deal. Investors were sceptical about the deal, noting the hefty price target.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/monthly-commentary-jpmorgan-global-research-enhanced-index-equity-fund-hedged.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: PER0715AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
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Fund Highlights ->
Fund Commentary
fund_features:
JPMorgan Global Research Enhanced Index Equities Hedged aims to achieve a long-term return in excess of the benchmark by investing primarily in a portfolio of companies, globally; the risk characteristics of the portfolio of securities held by the Sub-Fund will resemble the risk characteristics of the portfolio of securities held in the benchmark.
- The Fund is designed to give broad market exposure to international stock markets.
- This Fund may be suitable for investors who seek to benefit from potential excess returns with similar risks to investing in securities representing the benchmark.
- The Fund will substantially invest in the Underlying Sub-Fund.
structure: Managed Fund