December, 2022
Over the quarter, Capital Group Global Equity Fund (AU) returned8.4%1before fees, whilethe index returned 3.9%. Net of fees, the fund returned 8.2%. Over a one-year period, the portfolio returned -12.1% before fees, and -12.8% after fees, compared with the index’s return of -12.5% .
Sector attribution
• Stock selection in the consumer discretionaryand information technology sectors contributed to relative gains.
• All sectors boostedrelative returns except energy. A below-index exposure to the sector detracted on a relative basis.
Contributors and detractors.
• Consumer discretionary: Not holding electric vehicle (EV) maker Teslawas helpful as shares plunged 54% over the quarter, suffering from negative sentiment on CEO Elon Musk’s acquisition of Twitter and his related sales of Tesla stock.
September, 2022
Over the quarter, Capital Group Global Equity Fund (AU) returned-2.4% before fees, whilethe index returned 0.3%. Net of fees, the fund returned -2.5%. Over a one-year period, the portfolio returned -14.6% before fees, and -15.4% after fees, compared with the index’s return of -9.8%.
Sector attribution:
• Investment choices in the health careand consumer staples sectors detracted fromrelative results.
• In contrast, stock selection in the materials and utilities sectors added to relative returns.
Contributors and detractors
• Health care: Shares of Seagenslid after the drugmaker lost an arbitration dispute with Daiichi Sankyo over the use of its antibody-drug conjugate technology.
• Consumer staples: Shares of Ocado fellafter the online supermarket slashed its sales and earnings guidance for the 2022 fiscal year.
• Materials: Chile-based miner Sociedad Quimica Y Minera saw its shares climbon strong demand and ongoing pricing strength in lithium.
• Utilities: Shares of electricity generator and distributor AES rose on the back of strong second-quarter results, with the company beating earnings and revenue estimates.
June, 2022
Over the quarter, CapitalGroup Global Equity Fund (AU) returned-8.3%1before fees, whilethe index returned -8.4%2 .Net of fees, the fund returned -8.6%. 3 Over a one-year period, the portfolio returned -11.4%1 before fees, and -12.2%3 after fees, compared with the index’s return of -6.5% .
Contributors and detractorsfor Q2 2022:
• Consumer discretionary: Not holding Tesla helped as its shares slid 38% against a deteriorating economic outlook, with worries on the potential for demand to slow, especially as the electric vehicle company continued to raise prices for its models in response to increasing input costs, pressuring affordability for its customers.
• Financials: Insurer AIA Group’s shares gained 5% on easing coronavirus restrictions. In April, the company said its businesses were regaining momentum in areas where coronavirus infections had peaked.
• Information technology: Shares of Dutch semiconductor equipment maker ASMLlost 25% during the quarterfollowing worries over a potential slowdown in demand for the semiconductor industry alongside continuing supply chain constraints and cost pressures.
• Materials: Brazilian miner Vale saw its shares fall 20% during the quarter. Industrial metals prices fell given waning Chinese demand and rising concerns over the risk of a global recession amidcentral banks’ aggressive response to elevated inflation.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGGEAU-q-3.pdfMarch, 2022
Over the quarter, Capital Group Global Equity Fund (AU) returned -9.4% before fees, while the index returned -8.4%. Net of fees, the fund returned -9.6%. Over a one-year period, the portfolio returned 5.3% before fees, and 4.3%3 after fees, compared with the index’s return of 11.6%.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGGEAU-q-2.pdfSeptember, 2021
U.S. equities eked out a small gain despite elevated volatility late in the quarter. Investors weighed the prospects of the recovering consumer against concerns over rising inflation and interest rates. A fraught political environment also contributed to September’s 5% decline, the worst monthly return since March 2020. Gross domestic product grew at an annualised 6.7% rate in the second quarter, supported by ongoing stimulus measures and the continued reopening of businesses. In August, the unemployment rate declined to 5.2%, a pandemic-era low, while consumer spending ticked up.
Over the quarter, Capital Group Global Equity Fund (AU) returned 1.4%1 before fees, while the index returned 4.0%2. Net of fees, the fund returned 1.1%.3 Over a one-year period, the portfolio returned 26.5%1 before fees, and 25.3%3 after fees, compared with the index’s return of 27.8%2.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGGEAU-q-1.pdfApril, 2021
For the month ended 30 April 2021, Capital Group Global Equity Fund (AU) returned 3.8%1 before fees while the index returned 3.2% 2. Net of fees, the fund returned 3.7%3. For the 12-month period, the portfolio returned 28.3%1 before fees, and 27.0%3 after fees, compared to the index’s return of 23.0%2.
• Stock selection in the consumer discretionary sector contributed positively to relative returns. A position in online casino solutions provider Evolution Gaming Group was the portfolio’s top relative contributor after it released an impressive set of first quarter 2021 results, which boosted its shares to end the month 30% higher. The Sweden-based company’s overall revenues were up 105% year-on-year while organic growth in its core live business accelerated from 50% to 60% as regulatory momentum remains positive in the US while areas of growth are appearing in the Philippines, Japan and Latin America.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Commentary-CGGEAU-m.pdfDecember, 2020
Over the quarter, Capital Group Global Equity Fund (AU) returned 8.1%1 before fees, while the index returned 5.7%2. Net of fees, the fund returned 7.8%.3 Over a one-year period, the portfolio returned 7.9%1 before fees, and 6.9%3 after fees, compared with the index’s return of 5.7%2.
Sector attribution for Q4 2020:
• Stock selection in the information technology and industrials sectors drove returns on a relative basis.
• However, the selection of stocks in the consumer discretionary and real estate sectors weighed on relative results.
Contributors and detractors for Q4 2020:
• A large position in semiconductor equipment manufacturer ASML proved beneficial as the stock ended the period up 27% on better-than-expected business margins. While the company lowered its sales guidance for extreme ultraviolet (EUV) lithography machines for financial year 2021, increasing evidence of a recovery in the dynamic random access memory (DRAM) space has improved investor sentiment towards the stock.
• Shares of aerospace giant Airbus jumped 45% over the quarter due to strong order and delivery numbers in October. The launch of several COVID-19 vaccines has also brought life back to the severely impacted aviation industry due to the increased possibility of lockdown restrictions being lifted sooner rather than later.
• In contrast, Ocado Group, a British online grocer, was a leading detractor on a relative basis. Its shares fell 17% even though Ocado raised its full-year profit forecast on the back of strong retail sales growth. A key reason for the negative response from investors was due to weak growth in order numbers, which suggests that shopping behaviour could be about to normalise.
• Shares of data center real estate investment trust (REIT) Equinix dropped 6% during the quarter on profit taking but still ended the year 24% higher. Lockdown restrictions globally have prompted a surge in demand for storing and distributing data, benefitting the business of data center REITS.
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: WHT0044AU
release_schedule: Quarterly
commentary_block: Array
factsheet_url:
https://www.capitalgroup.com/adviser/au/en/fund-information/gef.html#tab_2
LITERATURE ->
Quarterly Fund Commentary
fund_features:
Capital Group Global Equity (AU) aims to provide long-term investment results exceeding those of the Benchmark. The Fund invests primarily in shares of companies listed on stock exchanges around the world including emerging markets, but will also have some exposure to cash. The Fund can use forward foreign exchange contracts to facilitate settlement of purchases and sales of securities and to mitigate currency risk on specific investments within the portfolio. However, the Fund does not intend to systematically hedge currency risk.
structure: Managed Fund