Performance as at 30 June 2020
Performance is after the annual fund charge, and before tax and membership fees (if applicable). For more information, see legal information and disclaimers.
What happened this quarter (3 months to 30 June 2020)
- International equity markets staged an impressive turnaround in the second quarter of 2020 as sentiment around the economic impact of COVID-19 improved as countries slowly began reopening their economies. The rally saw most indices we track record double-digit gains. Against this backdrop, the MSCI All Country World Index rose 17.7%, in local currency terms.
- In the US, share markets had a strong quarter, with the tech sector continuing to lead the way. The NASDAQ 100, a benchmark of US technology stocks, traded to a new all-time high, finishing the quarter up 30%. The tech rally was led by large-cap stocks, in particular, Apple, which rose more than 40%. Elsewhere, the S&P 500 recorded its best quarterly gain in more than 20 years, rising 20%
- The fund comprises of four individual investment managers each with their own investing style, which enables diversification and protection in volatile markets, but not holding back gains during a stock market rally. Of the four fund managers, growth manager Franklin was the best-performing, comfortably beating the benchmark as the trend of growth stocks outperforming value stocks showed no signs of ending.
- The fund saw strong gains in its Consumer Discretionary holdings, with MercadoLibre, Floor & Décor Holdings and eBay as some of the best-performing stocks. Both MercadoLibre and eBay benefited from the lockdown measures that saw a substantial increase in online shopping. Shares in MercadoLibre got an extra boost after it reported better-than-expected earnings, showing a 44% increase in volume and a 38% increase in net revenue.
- Another company to benefit from the increase in online orders was Shopify, a long-standing holding of the fund. Shares in the company surged more than 100% over the quarter, trading to a new all-time high.
- Detracting from performance was the fund’s underweight position in some of the best-performing stocks over the quarter, including Tesla and Microsoft.
- Shares in Tesla hit a record-high in June and finished the quarter up more than 100%. The rally saw the electric-car company become the most valuable US car company ahead of General Motors, Ford and Fiat Chrysler with a market cap of more than US$200 billion.
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