Market Commentary – May 2018
Global equities were subdued in May (+0.1% USD terms, -0.1% AUD), with political uncertainty in Italy and a strong U.S. dollar compounding anxiety around moderating Eurozone and Asian growth. In Italy, the prospect of snap elections was seen as having the potential to morph into a referendum on the Euro, returning E.U. vulnerability back to fore. Meanwhile, a strong U.S. corporate earnings cycle, low unemployment and expansionary fiscal policy fuelled the stronger U.S. dollar, undermining sentiment towards Emerging Markets more generally. Against this backdrop, investors rotated out of relatively low multiple stocks – or “value” – in favour of “structural growth” and “quality” exposures, irrespective of price. Despite higher risks to the de-synchronisation of global growth, short-term indicators of economic fundamentals remained resilient.
During May the Antipodes Global Fund, Antipodes Global Fund – Long and Antipodes Asia Fund underperformed their benchmarks. Major contributors to performance included our Online Services, Consumer Incumbent and Connectivity exposures, whilst our Domestic Europe/Asia and short exposures detracted.
For further information, please refer to our Monthly Fund updates.