Insights

  • 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. 

  • MONTHLY FUND COMMENTARY

​As widely anticipated, recent economic data still point to a strengthening economy. After a soft first quarter in terms of growth (+2.2% revised from +2%), real GDP for Q2 rose at an annual rate of +4.1% according to advance estimates which have been released. 

  • MONTHLY FUND COMMENTARY

In July, the Fund reported a loss of -0.94% on an absolute basis. At the stock level the top three contributors during the month were Barco, Valmet and Boozt; whilst at the other end of the spectrum, Akwel, Rieter and Spie were the three main detractors.

  • MONTHLY FUND COMMENTARY

After a dismal June, Chinese equities continued to fall in July as trade tensions between China and the US continued to build. The MSCI China Index lost 2.5% during the month, while the CSI 300 stabilised with a slight gain of 0.2%. 

  • MONTHLY FUND COMMENTARY

​In July, the trade war between the US and China escalated, resulting in the CNY falling to a 12mth low. During the month, the EU finalised a trade agreement with the US. At the same time, Turkey’s central bank refrained from raising rates, spreading risk concerns to Emerging Markets. 

  • MONTHLY FUND COMMENTARY

During the first half of July, the Japanese market declined on the back of concerns over trade frictions and the weakness of the Chinese market. This said, the market later started to recover following strong economic growth in the US and a depreciating JPY against the US dollar, as well as decreasing tensions surrounding trade frictions and fiscal policy announcements in China. 

A Bright Future for Japanese Equities - Watch Video
  • VIDEO

Yutaka Uda, portfolio manager of the EI Sturdza Nippon Growth (UCITS) Fund discusses the opportunities available in the Japanese equity market over the short and long term.

  • MONTHLY FUND COMMENTARY

​In June, the Europe Value Fund returned +0.59%*, outperforming its benchmark by 1.28 percentage points. In terms of alpha, the main contributor was Consumer Discretionary, largely due to Criteo. The Fund’s overweight to Consumer Staples also helped. The best performing sectors for the benchmark were Utilities and Consumer Staples; whilst Consumer Discretionary, Materials and Industrials were the worst performing sectors in June.

  • MONTHLY FUND COMMENTARY

In June, the G7 summit, which concluded with no new effective measures to resolve global trade disputes, was in line with market expectations, not supporting the market. Recently, President Trump has been trying to change the global trade order, which he believes unfair to the US, with his behaviour negatively influencing global markets. 

  • MONTHLY FUND COMMENTARY

In June, the trade war between the US and China, the political situation in Italy and the turmoil in Emerging Markets remained a matter of concern. In the US, the FOMC raised the Fed Funds rate to 1.75%-2% during the month, with Mr Powell’s hawkish speech opening the door for two further rate hikes during the second half of 2018.

  • MONTHLY FUND COMMENTARY

In June, Chinese equities were sold heavily following an unexpected announcement by the US regarding import tariffs as well as a free-falling Renminbi. During the month, the MSCI China Index lost 5.2%, ending the first half of the year with a negative return of 1.8%. 

  • MONTHLY FUND COMMENTARY

2018 began well, as the economy benefited from positive momentum off the back of 2017. Nonetheless, the outlook for the second half of the year already depicted concerns, having been - and still being - considerably more opaque, reflecting fiscal stimulus, increased constraints in the labour market and a tighter monetary policy. 

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