June quarter gives global equities a boost
Global equities have seen a boost in the June quarter, but the sector average remains in negative territory for H1 2020.
According to FE Analytics, within the Australian Core Strategies universe, the global equities sector lost an average of 4.64% since the start of the year to 30 June, 2020.
The best-performing fund was CFS FC Baillie Gifford W LT Global Growth which returned 45.18%, followed by Perpetual Global Innovation Share A (27.77%), CFS Baillie Gifford Global Stewardship A (27.28%), Lakehouse Global Growth (26.33%), CC Marsico Global Institutional (20.72%).
The CFS FC Baillie Gifford W LT Global Growth fund’s top holdings included Amazon, Tesla, Alibaba, Tencent and Facebook.
Perpetual’s top holdings were law enforcement weapons manufacturer Axon International, Zoom, Siemens, Vivendi, and Polish video game developer CD Projekt.
In its market commentary, Perpetual said global stockmarkets had begun to recover over the June quarter.
“Returning investor sentiment, spurred by unprecedented global government and central bank stimulus measures, and early signs that infection rates were beginning to peak, assisted equity markets,” it said.
“Despite improving optimism, volatility remained at decade-long highs as dividend payments continued to be postponed or cancelled by many companies, and earnings forecasts were withdrawn.
“While major economies began to reopen on initial signs of reduced infection rates, concerns of a resurgence in cases adversely impacted sentiment towards the end of the quarter, with spikes in reported cases emerging in Beijing, Tokyo, and across several US states.”
The CFS FC Baillie Gifford Global Stewardship fund combined elements of stewardship and governance to go beyond basic environmental, social and governance (ESG) principles through corporate engagement.
Its top holdings were Amazon, e-trading fintech Marketaxess Holdings, Shopify, Tesla, and Japanese holding company Softbank.
Lakehouse’s top holdings were Paypal, Facebook, payments platform Adyen, Amazon, and Alphabet.
In its June commentary, Lakehouse said a long-term horizon was never more valuable than during a market crash.
“It was our focus on the long-term drivers of company performance – competitive dynamics, leadership, capital allocation, corporate culture, etc. – that kept us oriented on multi-year opportunities while many around us panicked and went to cash,” it said.
“Despite having navigated record volatility that eclipsed even the Global Financial Crisis, the fund still owns 15 of the 21 companies it owned a year ago.”
When it came to the performance of the Money Management Fund Manager of the Year global equities award winner, the winning fund, Zurich Investments Concentrated Global Growth, had returned 5.47%.
Among the nominees, Loftus Peak Global Disruption returned 15.57%, followed by Hyperion Global Growth Companies B (14%) and Legg Mason Martin Currie Global Long-Term Unconstrained A (2.32%).
Best-performing ACS global equity funds since the start of the year to 30 June 2020
AUTHOR
Chris Dastoor
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