September, 2023
In September, the International Share Fund outperformed the benchmark.
This is led primarily by positive stock selection in Information Technology and Financials. On the other hand, stock selection in Industrials and Energy detracted. As it relates to country attribution, Japan and Netherlands were the top contributors to performance, on the other hand Australia and United Kingdom detracted the most.
Largest stock contributors
• Not owning Apple contributed to relative performance as the share price continued to trend downward after reports that China, which accounts for almost 20% of the company’s revenue, banned government workers from using iPhones.
• OCI shares rallied as nitrogen fertilizer prices increased 25% due to low inventories, notably in China, and emergence of new demand in major markets like India.
• Not owning NVIDIA also contributed positively amid the technology sector performing poorly due to the expectation that the Fed will keep interest rates higher for longer persisted.
• UnitedHealth Group shares rebounded in September, moving higher alongside other managed care providers that are expected to be safe havens in a higher-for-longer inflationary environment. Investors have also become increasingly comfortable that managed care companies can effectively reprice moving into 2024.
• HSBC Holdings shares bounced back following the negative reaction to second quarter results announced last month.
Largest stock detractors
• Ocado Group detracted as shares were weighed by the company’s latest trading update where revenue growth and average selling price for the period were slightly softer than expected.
• Philips shares dropped after a settlement agreement was reached to resolve one category of legal claims against them following their voluntary recall of sleep and respiratory care devices. This follows 5 months of strong performance.
• Dollar Tree share price weakness continued as investor confidence was undermined by elevated costs and disappointing margins in their quarterly results recently, despite performing on track with the initial stages of their turnaround plan.
• Despite witnessing strong momentum for much of this year with demand across majority of its products, MSA Safety shares pulled back this month given its sensitivities to a high interest rate environment.
• Ashtead Group shares sold off as the company noted a softer outlook on revenue growth in the UK market, though maintained confidence in their momentum in North American end markets.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_int_share-2-1.pdfAugust, 2023
In August, the International Share Fund underperformed the benchmark.
Stock selection in Information Technology and Communication Services detracted the most, while stock selection in Industrials and Consumer Discretionary contributed positively. As it relates to country attribution, the United Kingdom and United States detracted while our positioning in the Netherlands and Australia added value.
Largest stock contributors
• Philips shares rose during the month following the announcement of investment company Exor had taken a 15% stake in the company.
• APA shares rose following their post 2Q23 update, highlighting a positive outlook on oil growth into next year and encouraging progress on the Suriname project.
• Ingersoll Rand posted another quarter of strong results, with organic revenue growth at 12% yearon-year and almost 200bps of margin expansion.
• TJX Cos also outperformed the broader market as the company announced substantial upside to sales and gross margins, driven by higher customer traffic and basket size, in addition to lower freight costs. Overall, the market reacted positively as TJX continues to execute well amid a challenging macro environment, and the increase in EPS guidance reflects a favorable backdrop for off-price buying.
• Bunge shares gained after the company increased their full-year adjusted EPS outlook and reported strong figures across their Refined and Specialty Oils business, as well as their Agribusiness, in their second quarter results.in the Netherlands and Australia added value.
Largest stock detractors
• Dollar Tree detracted as investor confidence was undermined by elevated costs and disappointing margins in their quarterly results, despite performing on track with the initial stages of their turnaround plan.
• IAC shares sold off after Q2 results showed revenues and adjusted EBITDA well below consensus estimates for their Angi segment.
• Five9 shares fell following the company’s Q2 earnings which indicated pressure in their Consumer business.
• Not owning NVIDIA continued to detract from relative performance this month.
• Not owning Eli Lilly & Co was a detractor as shares rallied on the back of positive results from a competitor's phase 3 trial, demonstrating effectiveness of obesity drugs in reducing major adverse cardiovascular events.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_int_share-1-1.pdfJuly, 2023
In July, the International Share Fund outperformed the benchmark.
This is led primarily by positive stock selection in Communication Services, followed by Industrials. Meanwhile, stock selection in Information Technology and Consumer Discretionary detracted slightly. As it relates to country attribution, United States and United Kingdom were the top contributors to performance, though exposure to Finland and Hong Kong detracted the most.
Largest stock contributors • Ocado Group shares traded up on Q2 results, and in parallel the company demonstrated optimism around their new business that plans to sell automated solutions outside of groceries.
Largest stock contributors
• Lyft shares rose following reports that demand for their services had seen an increase, and that the company were considering strategic options for their bike business in a bid to increase profitability.
• Bunge shares rallied amid rising commodity prices this month as news of additional Ukrainian grain export limitation is pushing wheat prices up. Inclement weather, including flooding in SouthAmerica, may support elevated food prices for some time.
• OCI benefited from recent strength in underlying nitrogen markets and still-strong agriculture fundamentals. The recent surge in gas prices in Europe is expected to benefit fertilizer producers.
• APA shares were boosted along with rebounding commodity prices.
Largest stock detractors
• Not owning NVIDIA continued to weigh on relative performance this month.
• Koninklijke Philips shares fell after a decline in new orders was reported in their quarterly earnings as investors’ fear this might be the first indicator of a trend. Yet, half of this short-term decline is explained by Russia and orders year-on-year are still up 3%.
• FANUC shares sold off after the company reduced operating profit guidance to historic lows of 15.8%, mainly due to lower utilization rate on the back of high inventories. • Spectris shares detracted in anticipation of the half year results, which showed that some of the key investment end-markets, such as life sciences, are experiencing slower growth than expected. However, other businesses are still very strong and Spectris posted another record-high order book.
• Not owning Meta Platforms also detracted from relative performance.
June, 2023
In June, the International Share Fund underperformed the benchmark. This is driven primarily by positive stock selection in Communication Services and Industrials. Meanwhile, stock selection in Information Technology and Consumer Discretionary detracted the most. Regarding attribution by countries, the Netherlands and UK were the top contributors to performance, while the US and France detracted the most.
Largest stock contributors
• Ocado Group shares traded up on rumors that Amazon and other companies were putting together a £8 per share bid for Ocado.
• MSA Safety shares gained as optimism on the earnings prospects of the company drove estimates and the share price higher. Management are monitoring macroeconomic impacts, but continue to see a strong demand trend and raised full year guidance in Q1 earnings call.
• Ingersoll Rand shares traded well this month as the company is being increasingly recognized in the market as a high quality hydrogen play.
• Five9 shares rose on the back of a broader technology rally, following the recent surge in the value of AI-related companies.
Largest stock detractors
• Not owning Tesla or Apple detracted from relative performance this month.
• Mondelez International shares pulled back slightly after outperfomance year-to-date. MDLZ lagged the broader market amid recent risk-on sentiment.
• Salesforce shares corrected slightly after strong price performance this year.
• Spectris shares fell following the company’s announcement on the acquisition of MicroStrain Sensing Systems Business. Although the target company is reported to have shown strong growth, limited details on the valuation were released causing volatility in the stock price.
May, 2023
In May, the International Share Fund underperformed the benchmark. Our underweight to Information Technology and our overall positioning in Consumer Staples detracted the most, while stock selection in Communication Services and Industrials contributed positively. From a country perspective, the Netherlands and Ireland weighed on relative performance while the United States and Germany added value.
Largest stock contributors
• Take-Two Interactive contributed to relative performance after shares surged following their Q4 earnings announcement; management expressed confidence in their pipeline, with 12 titles planned for fiscal 2024 and 36 in the following two years.
• Amazon shares gained on the back of better-thanexpected results, and markets responded well to the potential for profit margin improvement from cost reductions within its retail operations, rapid growth in its advertising segment, and strategic investments in artificial intelligence and machine learning capabilities.
Largest stock detractors
• Not owning NVIDIA was the main detractor as the stock price jumped on strong results and significantly higher guidance, where the CEO highlighted a surge in demand for AI processors.
• Not owning Apple also detracted as upside in iPhone demand and improving supply dynamics boosted their quarterly results.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_int_share-6.pdfApril, 2023
In March, the International Share Fund outperformed the benchmark. Positive stock selection in Financials and Health Care added the most value, however stock selection in Industrials and Materials was the most negative.
In general, the best performing sectors were Financials (0.46% total effect), Health Care (0.22%) and Consumer Staples (0.22%). However Industrials (-0.45%), Materials (-0.16%) and Utilities (-0.04% total effect) were key detractors.
In terms of attribution by countries, United States and United Kingdom were the top contributors to performance, while Ireland and Japan detracted the most.
File:March, 2023
In March, the International Share Fund underperformed the benchmark.
Our overall positioning in Financials was the main detractor, followed by stock selection in Industrials. Meanwhile, our overweight to Communication Services and our underweight to Real Estate contributed positively to relative performance. From a country perspective, the United States and France detracted the most, while our exposure to Switzerland and the Netherlands had a modest positive effect.
Largest stock contributors
• Salesforce shares rallied after delivering topline growth ($8,384m, +14% year-on-year) and operating margins (29.2%, +14% y-o-y) well ahead of consensus. Aditionally, an announcement made by top investor, Elliott Management, stated that Salesforce was making substantial progress towards regaining investor trust and that the company’s commitment to responsible capital-return priorities is consistent with their recommendations.
• Koninklijke Philips jumped after they announced that litigation around their DreamStation 1 CPAP machine would likely reach an agreement in 2023 with the possibility of settlement, improving overall cash flow
Largest stock detractors
• SVB Financial Group was the main detractor as shares sharply sold off following an announcement to raise equity capital while also realizing a significant loss in their bond portfolio. This combined with a rapid deposit run led the bank to be closed by regulators.
• Wells Fargo sold off in line with the banking sector volatility that was driven by the collapse of Silicon Valley Bank and Signature Bank.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_int_share-5.pdfFebruary, 2023
In February, the International Share Fund underperformed the benchmark.
Stock selection in Energy and Consumer Discretionary detracted the most, while stock selection in Health Care and Materials contributed positively. As it relates to country attribution, the US and Switzerland detracted, while on the other hand the UK and Ireland added value.
Largest stock contributors
• Spectris shares rose after reporting a 16% year-overyear increase in profit, strong full year sales growth and a record order book that has left investors feeling more confident about the 2023 outlook.
Not owning Alphabet contributed positively to relative performance this month.
Largest stock detractors
• Not owning Apple detracted from relative performance after reported earnings were much better than investors had feared.
• Not owning NVIDIA detracted from relative performance due to a strong quarterly earnings report and positive industry outlook from a competitor.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_int_share-4.pdfJanuary, 2023
January, the International Share Fund outperformed the benchmark. Positive stock selection in Industrials and Financials added the most value, while stock selection in Materials and Energy detracted. In general, the best performing sectors were Industrials (0.66% total effect), Financials (0.6%) and Health Care (0.3%). On the other hand, Materials (-0.37%), Information Technology (-0.21%) and Energy (-0.14%) weighed on performance. As it relates to country attribution, United States and Japan were the top contributors to performance, at the same time exposure to Netherlands and the United Kingdom detracted the most.
Largest stock contributors:
• World Wrestling Entertainment share price jumped in January on news that Vince McMahon – former CEO and chairman – would return to WWE as executive chairman and would pursue strategic alternatives ahead of the upcoming media rights renewal this year.
• Las Vegas Sands share price jumped in January on news that Vince McMahon – former CEO and chairman – would return to WWE as executive chairman and would pursue strategic alternatives ahead of the upcoming media rights renewal this year. • Banco de Sabadell shares were up on strong earnings and a surprise stock buyback, and the bank expects to generate 10% ROE in 2023 with further ROE improvement on a sustainable basis.
Largest stock detractors:
• Not owning Tesla also detracted from relative performance as shares rebounded in January following a weak share price performance in 2022 as the company recently reported a strong order book for EVs.
• OCI saw a pullback in its share price as concerns around energy storage in Europe were alleviated recently, leading to a decline in natural gas and nitrogen fertilizer prices.
• Not owning NVIDIA detracted from relative performance this month.
December, 2022
In December, the International Share Fund outperformed the benchmark. Positive stock selection in Communication Services and Consumer Discretionary added the most value, while stock selection in Materials and Health Care detracted slightly. In general, our positioning in Consumer Discretionary (0.34% total effect), Communication Services (0.3%) and Consumer Staples (0.27%) was the highest contributor to performance. On the other hand, Materials (-0.26%), Utilities (-0.13% t) and Real Estate (-0.03%) were the worst performin sectors. As it relates to country attribution, the United States and Ireland were the top contributors to performance, while the Netherlands and Denmark detracted the most.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/ubs_int_share-2.pdfNovember, 2022
In November, the International Share Fund outperformed the benchmark. Positive stock selection in Information Technology and Health Care contributed positively to relative performance, while stock selection in Communication Services detracted the most, followed by our overall positioning in Materials.
Largest stock contributors:
• Not owning Apple contributed positively to relative performance after its share price faced downward pressure following potential production disruption from lockdown protests in China.
• AIA Group outperformed the broader market as the company remains resilient relative to other insurers with only single digit annualized premium equivalents (APE) declines in Q3 2022. AIA also performed better than peers in the longer-term insurance segment, which is typically higher margin.
• Not owning Tesla also benefitted relative performance as shares declined on concerns over Musk's capacity in light of his recent purchase of Twitter.
• Las Vegas Sands share price increased in response to signs of easing Covid restrictions in China, which renewed optimism of recovery in its Macau casinos.
• Metso Outotec performed well as recent earnings showed strong operational performance with a full order book, acceleration in sales growth, and adjusted EBITDA margins up year-on-year.
October, 2022
In October, the International Share Fund outperformed the benchmark. Positive stock selection in Communication Services and Consumer Discretionary added the most value, however stock selection in Health Care and Information Technology was the most negative. As it relates to attribution by countries, United States and Ireland were the top contributors to performance, while the Netherlands and Hong Kong detracted the most.
Largest stock contributors
• Hess and APA Corporation were the top contributors for the portfolio as shares rallied on the back of accommodative oil prices.
• Ameriprise Financial gained post 3Q22 earnings release, citing strong performance in Wealth Management and Retirement & Protection Solutions as the key contributors. The bank is a beneficiary of widening spreads and rising rates which continue to drive upside in margins.
• Not owning Tesla contributed positively to relative performance after the company posted disappointing Q3 results and weakness in deliveries this quarter.
• Not owning Meta Platforms contributed positively to relative performance as shares fell sharply on an operating profit miss, driven by higher opex. Broadly, investors are concerned about what appears to be an investment-heavy year ahead, in addition to their focus on the metaverse moving forward.
September, 2022
In September, the International Share Fund underperformed the benchmark. Stock selection in Communication Services added the most value, followed by our overall positioning in Information Technology. Meanwhile, stock selection in Consumer Staples and Health Care detracted the most. From a country perspective, stock selection in the US and Netherlands contributed positively, while Norway and the UK detracted the most.
Largest stock contributors:
• World Wrestling Entmt shares were up on the announcement of a multi-year agreement with Foxtel, which was perceived by the market as a positive step as WWE looks to expend its international network subscriber base.
• AIB Group shares continue to outperform on the back of solid results in H1, which showed a 20% increase in new lending ahead of rate rises. The bank should benefit from the current rising rate environment, with a solid CET1 ratio of 15.3%.
• Maravai LifeSciences performed well as management updated the market on R&D funding and mRNA prospects, with expectations that the CDMO part of the business could grow 30-35% postCOVID.
Largest stock detractors:
• Mowi shares fell following the announcement that the parliament would review a proposed 40% resource tax on salmon and trout farming in Norway which could impact Mowi’s profitability in the future. The proposal is out for consultation currently and historically, we have typically seen such taxes come in much smaller in the end. To weigh in on the argument, Mowi and the other two majors announced in early October the cancellation of their biomass growth purchases.
• Ocado Group share price came under pressure as inflation impacted their retail results, though customer numbers continue to grow >20%; and their Solutions business continues to progress, which in our view is the main value driver in the long term.
• Spirit AeroSystems shares were weighed by uncertainty around 737 MAX production levels given supply chain pressures, but the company remains positive on the broader demand outlook for both their commercial aerospace and defense products.
August, 2022
In August, the International Share Fund outperformed the benchmark. Positive stock selection in Financials and Materials added value, while stock selection in Health Care and Information Technology detracted. As it relates to country attribution, our overweights and stock selection in France and the Netherlands contributed positively. Meanwhile, stock selection in Switzerland and the United Kingdom detracted the most.
Largest stock contributors:
• Hess contributed positively this month as the Energy sector outperformed the broader market. Overall, Hess’ strong FCF and production outlook, with the ramping of Guyana, has also boosted its share price.
• OCI shares trended higher as rising natural gas prices continue to curb ammonia production in Europe.
May, 2022
The Global Equity strategy outperformed the benchmark in May.
Positive stock selection in Information Technology and Financials added the most value, while stock selection in Industrials and Health Care was the most negative. In general, the best performing sectors were Information Technology (0.58% total effect), Financials (0.51%) and Consumer Staples (0.32%); while on the other hand Industrials (-0.37%), Health Care (-0.36%) and Materials (-0.22%) detracted. With regards to country attribution, the United States and Switzerland were the top contributors to performance, while the Netherlands and Norway detracted the most.
We continue to anticipate further volatility in the markets, driven by inflationary pressures, central bank tightening and continued geopolitical risks around the war in Ukraine which looks increasingly set to turn into a prolonged conflict. This would likely add to the potential for more severe disruptions of energy and food supplies and thus higher commodity prices. Inflation has been persistent and we continue to monitor the impact inflationary pressures have on securities within our portfolio. As such, we continue to screen for high quality, cash generative companies that are resilient amid an environment where margins are coming under pressure. We believe the market volatility presents compelling investment opportunities where share prices have been dislocated from underlying fundamentals. As we remain active in such a market environment, we are looking to upgrade the quality of the portfolio and increase exposure to companies with strong earnings that can withstand a potential economic slowdown.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/188132394.pdfJanuary, 2022
The Global Equity strategy outperformed the benchmark to start the year.
Positive stock selection in Consumer Staples and Financials added the most value, while stock selection in Health Care and Information Technology detracted the most. In general, our positioning in Financials (0.55% total effect), Energy (0.39%) and Consumer Staples (0.31%) was the highest contributor to performance. Though Health Care (-0.33%), Utilities (-0.06%) and Communication Services (-0.05%) were key detractors. With regards to country attribution, United States and France were the top contributors to performance, while exposure to Japan and Canada detracted the most.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/184034485.pdfNovember, 2021
The Global Equity strategy underperformed the benchmark in November.
Stock selection in Information Technology and Consumer Staples detracted the most, while stock selection in Consumer Discretionary and Financials added value. In general, Information Technology (- 0.52% total effect), Consumer Staples (-0.36%) and Health Care (- 0.33%) were key detractors. Meanwhile, our positioning in Consumer Discretionary (0.57%), Cash (0.04%) and Real Estate (0.02%) contributed positively. With respect to attribution by countries, exposure to Netherlands and United States detracted the most, while Austria and Australia added value
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/181857333.pdfSeptember, 2021
The portfolio saw strong preformance last month, outperforming MSCI World by more than 200 bps. Positive stock selection in Industrials and Materials added the most value, though stock selection in Consumer Discretionary and Utilities detracted the most. In general, the best performing sectors were Industrials (0.36% total effect), Materials (0.3% total effect) and Financials (0.3% total effect). Consumer Discretionary (0.01% total effect), Real Estate (0.05% total effect) and Consumer Staples (0.07% total effect) were key detractors. In regard to stock contribution, Hess (0.28% total effect, 13.9% port total return), CF Industries (0.21% total effect, 22.9% port total return) and Erste Group Bank (0.2% total effect, 10.36% port total return) contributed positively to performance. Though Anglo American (- 0.19% total effect, -16.28% port total return), Tesla (-0.1% total effect) and MSA Safety (-0.08% total effect, -10.53% port total return) had the most negative impact on performance. In terms of attribution by countries, United States and Netherlands were the top contributors to performance, on the other hand exposure to United Kingdom and Australia detracted the most
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/180201548.pdfAugust, 2021
The portfolio lagged its benchmark in August. Positive stock selection in Health Care and Materials added the most value, though stock selection in Communication Services and Consumer Discretionary was the most negative. In general, the best performing sectors were Health Care (0.2% total effect), Materials (0.05% total effect) and Real Estate (-0.01% total effect). On the other hand Communication Services (-0.24% total effect), Consumer Discretionary (-0.23% total effect) and Information Technology (-0.23% total effect) were key detractors. On the topic of stock contribution, Fortinet Inc (0.22% total effect, 15.76% port total return), Ulta Beauty (0.16% total effect, 15.34% port total return) and Cornerstone OnDemand (0.12% total effect, 19.52% port total return) contributed positively to performance.
However Hess (-0.21% total effect, -10.06% port total return), Terminix Global Holdings (-0.17% total effect, -20.7% port total return) and Aptiv (-0.15% total effect, -8.79% port total return) detracted the most. Concerning attribution by countries, United Kingdom and Switzerland were the top contributors to performance, exposure to United States and Japan detracted the most.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/179177433.pdfJuly, 2021
The portfolio lagged its benchmark in July.
Positive stock selection in Financials and Health Care added the most value, at the same time stock selection in Communication Services and Industrials was the most negative. In general, the best performing sectors were Financials (0.29% total effect), Health Care (0.24% total effect) and Real Estate (0.07% total effect). However Communication Services (-0.77% total effect), Industrials (-0.31% total effect) and Energy (-0.25% total effect) were key detractors. Key contributors to the portfolio's performance where our holdings in Hill-Rom (0.26% total effect, 21.89% port total return) and Fortinet Inc (0.19% total effect, 14.3% port total return). Though Hess (-0.28% total effect, - 12.46% port total return) and World Wrestling Entmt (-0.22% total effect, -14.7% port total return) were top detractors. In regard to attribution by countries, United Kingdom and Australia were the top contributors to performance, though exposure to United States and Netherlands detracted the most.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/176026722.pdfJune, 2021
The portfolio lagged its benchmark in June.
Positive stock selection in Energy and Utilities added the most value, stock selection in Information Technology and Consumer Staples detracted the most. In general, the best performing sectors were Utilities (0.12% total effect), Energy (0.03% total effect) and Real Estate (-0.02% total effect). While Information Technology (-0.7% total effect), Consumer Staples (-0.25% total effect) and Financials (- 0.21% total effect) had a negative impact. In regard to stock contribution, Cornerstone OnDemand (0.1% total effect, 17.31% port total return), Fortinet Inc (0.1% total effect, 8.99% port total return) and BT Group (0.09% total effect, 7.83% port total return) contributed positively to performance. Apple (-0.3% total effect), Southwest Airlines (-0.27% total effect, -13.62% port total return) and Anglo American (-0.19% total effect, -10.63% port total return) had the most negative impact on performance. On the topic of attribution by countries, France and Germany were the top contributors to performance, though exposure to United States and Austria detracted the most.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/174806795.pdfMay, 2021
The performance was ahead of the benchmark in May. Positive stock selection in Energy and Information Technology added the most value, on the other hand stock selection in Health Care and Consumer Discretionary detracted the most.
In general, the best performing sectors were Information Technology (0.39% total effect), Energy (0.32% total effect) and Consumer Staples (0.14% total effect). However Consumer Discretionary (-0.29% total effect), Health Care (- 0.26% total effect) and Industrials (-0.09% total effect) had a negative impact. Concerning stock contribution, Apple (0.26% total effect), Erste Group Bank (0.2% total effect, 17.04% port total return) and Hess (0.19% total effect, 12.49% port total return) contributed positively to performance.
On the other hand SoftBank Group (-0.27% total effect, -16.55% port total return), Dollar Tree (-0.25% total effect, -15.14% port total return) and Alcon (-0.09% total effect, - 7.29% port total return) detracted the most. On the topic of attribution by countries, United Kingdom and United States were the top contributors to performance, exposure to Japan and Switzerland detracted the most.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/173462695.pdfApril, 2021
The performance was slightly behind the benchmark in April. Positive stock selection in Financials and Health Care added the most value, however stock selection in Information Technology and Industrials was the most negative. In general, our positioning in Financials (0.22% total effect), Health Care (0.19% total effect) and Energy (0.11% total effect) was the highest contributor to performance.
On the other hand Information Technology (-0.42% total effect), Industrials (-0.27% total effect) and Communication Services (- 0.15% total effect) had a negative impact.
With respect to stock contribution, Wells Fargo (0.2% total effect, 15.31% port total return), Ameriprise Financial (0.11% total effect, 11.16% port total return) and PPD (0.1% total effect, 22.09% port total return) contributed positively to performance. On the other hand Alphabet (-0.24% total effect), Lyft (-0.17% total effect, -11.9% port total return) and TechnoPro Holdings (-0.15% total effect, -11.95% port total return) had the most negative impact on performance. As for attribution by countries, Denmark and Sweden were the top contributors to performance, though exposure to United Kingdom and France detracted the most
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/172013743.pdfDecember, 2020
After fees and expenses, the portfolio increased by 0.98% over the month, outperforming its benchmark by 148bps. The portfolio continued to trade on positive momentum in December and closed off the last month of the year ahead of the benchmark. In December, higher beta and economically sensitive names within Industrials and Consumer sectors powered the outperformance in the portfolio.
Largest stock contributors:
• Lyft Shares continued to rise following November momentum, the company reported in November that rides trended very well and the strong cost containment was leading to better than expected EBITDA guidance for Q420.
• Palo Alto Networks Shares of the software company further gained last month, closing off the year 50% up.
• LiverRamp Following a sharp correction in November triggered by Q2 release, shares of the IT company bounced back last month and ended the year with a significant gain of 53%.
• Continental News of Vitesco Spin-off lifted the performance over the quarter, the company also benefitted from the Growth to Cyclical rotation seen in Q4.
• Bunge Several positive news boosted share price of the agriculture company over the quarter.
Largest stock detractors:
• Tesla Not owning this tech name again detracted from the performance, but we believe the extremely high valuations are running mean- reverting risks.
• Sage Shares lowered sharply as the Software company said increased investment in cloud products would squeeze its profit margin and wipe 60 million pounds from annual earnings.
• Vmware With the German software giant SAP losing nearly a quarter of its market valuation after the company issued a sobering update to its financial forecast for the rest of the year, the news weighed on shares of hardware and software companies with substantial exposure to enterprise information-technology spending.
• Koninklijke Ahold Delhaize Defensive stock suffered in the recent risk-on environment where cyclicals outperformed the broader market.
• Fidelity Natl Info Svcs Shares were weak in December and underperformed the broader market.
asset_class: Foreign Equity
asset_category: Large Blend - Fundamental
peer_benchmark: Foreign Equity - Large Fundamental Index
broad_market_index: Developed -World Index
manager_contact_details: Array
ticker: SBC0822AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
https://www.ubs.com/content/dam/static/asset_management/australia/factsheets/ubs_int_share.pdf
fund_features:
UBS International Share Fund aims to outperform (after management costs) the MSCI World Equity Accumulation Index ex Australia net total return index over rolling five year periods. The Fund seeks to invest across a wide number of countries and currencies in order to deliver a diversified investment strategy aimed at achieving the investment objective of the Fund. Currency allocation is actively managed and is a separate, although related decision to that of country allocation. Currency exposure to each country may be fully hedged, partially hedged to $A, or may exceed the Fund’s securities exposure to that country.
structure: Managed Fund