Insights

  • MONTHLY FUND COMMENTARY

The Strategic Europe Value Fund returned 0.58% over the month, slightly outperforming its benchmark (+0.53%). Stock selection was strong during September, particularly in the Information Technology and Consumer Staples sectors.

  • MONTHLY FUND COMMENTARY

During September the Fund reported a loss of -2.94% on an absolute basis. Spie was the largest monthly contributor to the Fund’s performance, followed by Albioma and Befesa.

  • MONTHLY FUND COMMENTARY

After a moderate rally in August, the Japanese market declined sharply at the beginning of September, overall still posting a gain of 5.6% at the end of the month. 

  • MONTHLY FUND COMMENTARY

In September, the trade war between the US and China, emerging markets (Turkey in particular), political tensions around the world (Iran and the impact on oil prices) and - to a lesser extent - Brexit continued to be a source of concern. This said, the Italian budget and the FOMC were the most awaited key events of the month.

  • MONTHLY FUND COMMENTARY

In September, market sentiment remained fragile as investors saw no end to the US-China trade tensions. The MSCI China Index lost 1.4% during the month, marking the fourth consecutive month of decline. Following repeated statements from the Chinese government that the country would not weaponise its currency to counter US sanctions, the Renminbi edged down slightly to 6.8688

  • MONTHLY FUND COMMENTARY

At the beginning of September, the Japanese market continued to decline, decreasing for 7 consecutive days. Natural disasters, such as a typhoon and earthquake hit Japan, detrimentally impacting the economy, which is already being negatively affected by concerns over global trade frictions. 

  • MONTHLY FUND COMMENTARY

Data reports for the period were solid, showing no particular signs of an economic slowdown. As expected, the Federal Open Market Committee increased the federal funds rate by 25 basis points (to 2-2.25%) after its September meeting. 

Asian Equities – Opportunity for Growth in China and Japan
  • VIDEO

Our Asia-focused investment experts provide their outlook for the Chinese and Japanese equity markets and the opportunities that lie within.

Disparities in European equity stock valuations lead to a great opportunity, Bertrand Faure

Bertrand Faure comments on how European equity market movements have created significant disparities in stock valuations leading to a great opportunity for fundamental investors.

  • MONTHLY FUND COMMENTARY

In August, China stocks remained under pressure as the ongoing Sino-US trade frictions, the contagion of the emerging market crisis and domestic macro concerns kept haunting the market, triggering the MSCI China Index and CSI 300 Index to lose 3.8% and 5.2% respectively.

  • MONTHLY FUND COMMENTARY

In August, the trade war between the US and China continued to escalate. At the same time, Turkey triggered Emerging Markets fears, with Italy remaining the main source of concern in the Eurozone.

  • MONTHLY FUND COMMENTARY

The month kicked off with a positive Q2 GDP report, indicating +4.1% QoQ growth. Consumer data was surprisingly strong, with the report suggesting a more resilient consumer profile than some may have expected.

  • MONTHLY FUND COMMENTARY

In August, the Fund reported a gain of 0.63%* on an absolute basis, whilst the Fund’s benchmark lost 2.14%, leading to a relative outperformance of 2.77 percentage points. 

  • MONTHLY FUND COMMENTARY

The Strategic Europe Value Fund* returned 1.2% in August, outperforming its benchmark by 3.5 percentage points. At a sector level, Information Technology, Financials (driven by the Fund’s significant underweight) and Industrials were the best performing sectors in terms of contribution. Both sector allocation and stock selection were strong over the month.

  • MONTHLY FUND COMMENTARY

In August, the domestic market (in terms of large caps) moved sideways, whilst small caps recovered. At the beginning of the month, the market declined sharply on the back of increased tensions between the US and China. At the same time, the dollar weakened, with investors continuing to react negatively to Trump’s behaviour.

  • MONTHLY FUND COMMENTARY

During the first half of the month, the Japanese market weakened following a decline in the Chinese market and concerns over trade frictions between the US and China. Simultaneous to the sharp decline in the Turkish lira, the Japanese market dropped, but gradually recovered when the impact was seen to be limited.

Video: China Equities: Core Investment Themes for Chinese Growth, Lilian Co
  • VIDEO

Lilian Co, portfolio manager of the Strategic China Panda Fund discusses the Fund's core investment themes in the China equities market over the short and long term.

Japanese Equities: A Growth Opportunity Video
  • VIDEO

Video: Mitsuhiro Yuasa, portfolio manager of the Strategic Japan Opportunities Fund discusses the opportunities available in the Japan equities market.

  • MONTHLY FUND COMMENTARY

In July, the Strategic Europe Value Fund (EUR I Class) returned +2.88%. At a sector level, the main monthly contributor to alpha was Consumer Staples, mostly driven by strong stock selection, whereas the largest detractor was Health Care.

  • MONTHLY FUND COMMENTARY

The domestic market moved without clear direction in July with large caps rising, while small caps declined sharply during the month. Early in the month, torrential rains and large-scale floods swept through western Japan, negatively impacting the region’s consumption. 

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