Forsyth Barr Global Equities Fund
The fund aims to achieve positive long-term returns by investing in selected international shares, subject to the risks associated with investments in international share markets.
AS AT 30 Jul 2021
Month End Unit Price
As at 30 Jun 2021
Market Commentary and Performance
For the quarter ending 30 June 2021, the Forsyth Barr Global Equity Fund delivered positive returns.
However, the strong re-rating of global cyclical “value” companies relative to “growth” companies meant the fund underperformed in relation to its market index.
The Forsyth Barr Global Equities Fund’s gross return for the June quarter was 4.37% compared the to the fund’s market index return of 7.39%.
The best performing stocks in the portfolio over the June quarter were: Alphabet, Amazon, Kering (which we have sold), Nike, Stellantis, Mondelez, Salesforce and Visa.
The worst performing investments in the fund over the quarter were: Royal Phillips, Takeda, Siemens Energy and Ping An.
The main cause for the relative underperformance was the fund’s underweight holding of equities within the value sectors (energy, financials, industrials and materials).
Portfolio Positioning and Outlook
Looking ahead, we believe the home-oriented companies that have benefitted from nesting and working remotely will begin to underperform more internationally-oriented growth companies as economies re-open their borders and workers re-locate back to the workplace.
In other words, a shift in spending away from the suburbs and regions and back to the main cities and provincial capitals. Against this backdrop, we see better value for risk in growth companies, although we note that this rotation back to growth may still be several months away.
Over the June quarter the Fund trimmed holdings that have performed well and had become more expensive (Alphabet, Fortinet, Fiserv, NVIDA, Kering, LVMH and Comcast) in our view.
The main areas in which the Fund increased its exposures were:
- Industrials, by buying Siemens Energy and the automotive companies Porsche, (which owns a 53% stake in Volkswagen) and Stellantis (whose key brands include Peugeot, Citroen, Fiat, Chrysler, Jeep, Maserati and Alfa Romeo);
- Energy (Australian listed Oil Search), based on our belief that LNG prices (indexed to oil prices) will strengthen over the next 12 months, and
- China, by adding to our Alibaba holding and introducing JD.com and Baidu to the fund. In our opinion these stocks have been oversold on the back of recent intervention by Chinese regulators and offer attractive value
We actively manage the fund’s foreign currency exposures. As at 30 June 2021, these exposures represented 94.59% of the value of the fund. After allowing for foreign currency hedges in place, 66.72% of the value of the fund was unhedged and exposed to foreign currency risk.
As at 30 Jun 2021
|Visa Inc.- Class A Shares||5.03%|
|ANZ transactional bank account||4.07%|
|Alibaba Group Holding-Sp Adr||4.06%|
|Takeda Pharmaceutical Co Limited||3.13%|
|Mondelez International Inc||3.03%|
|Baxter International Inc.||2.69%|
|Major holdings as % of total portfolio||38.00%|
|Total portfolio holdings||58|
Performance over time
As at 30 Jun 2021
|1 Month||3 Months||1 Year||3 Years||Since commenced operation|
|Net Fund Return||1 Month 3.83%||3 Months 3.78%||1 Year 15.50%||3 Years 10.04%||Since commenced operation 3.84%|
|Gross Fund Return||1 Month 3.71%||3 Months 4.37%||1 Year 18.85%||3 Years 12.75%||Since commenced operation 5.61%|
|MSCI ACWI Net TR Index (0% hedged to the NZD)||1 Month 5.55%||3 Months 7.64%||1 Year 28.30%||3 Years 13.37%||Since commenced operation 8.40%|
|MSCI ACWI Net TR Index (50% hedged to the NZD)||1 Month 3.84%||3 Months 7.39%||1 Year 32.68%||3 Years 14.15%||Since commenced operation 9.78%|
|MSCI ACWI Net TR Index (100% hedged to the NZD)||1 Month 2.13%||3 Months 7.10%||1 Year 36.98%||3 Years 14.71%||Since commenced operation 10.81%|
The unit prices shown do not take into account any adjustment for PIE tax.
Net Fund Returns are calculated after deduction of fund charges, trading expenses and accrued tax for a New Zealand resident paying individual tax at the highest Prescribed Investor Rate (28%). Gross Fund returns are calculated before deduction of taxes and fund charges but after deduction of trading expenses and including foreign tax credits, where applicable. Market index returns do not have any deductions for fund charges, trading expenses or tax.
As at 30 June 2021
This document tells you how the Forsyth Barr Global Equities Fund has performed and what fees were charged. The document will help you to compare the fund with other funds.
General Fund Information
Potentially lower returns
Potentially higher returns
The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the relevant fund’s assets goes up and down (volatility). A higher risk generally means higher potential returns over time, but more ups and downs along the way. The risk indicator is based on the returns data for the five years to 31 March 2021. See more information about the risks of investing in the Product Disclosure Statement.
Target investment mix
|Cash and cash equivalents||10.00%|
|New Zealand fixed interest||0.00%|
|International fixed interest||0.00%|
Forsyth Barr Investment Management is the manager of the Investment Funds. The comments on this webpage do not take your personal circumstances into account. Before acting on this information, please contact your Forsyth Barr Investment Adviser. Forsyth Barr Limited and its affiliates do not make any representation or warranty (express or implied) that this webpage is accurate, complete, or current and to the maximum extent permitted by law disclaim any liability for loss which may be incurred by any person relying on this webpage. This webpage is not intended to be distributed or made available to any person in any jurisdiction where doing so would constitute a breach of any applicable laws or regulations.
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