Monthly Updates

Antipodes Global Fund – Long (PIE)

MONTHLY REPORT | 31 August 2021

Investors should refer to the quarterly Fund Update which is on www.iisolutions.co.nz and www.business.govt.nz/disclose

Commentary

Global equities were positive in August (+1.6%) led by Financials, Information Technology, Utilities and the Communication Services sectors, while Materials, Energy and Consumer Discretionary underperformed. US equities (+2.0%) outperformed amidst economic re-opening and the continuation of accommodative stimulus policy from the US Federal Reserve, despite hawkish tones and the prospect of tapering. The wind down of the American Rescue Plan continues, while US Senate Democrats passed $550b in new spending with the Infrastructure Bill. European equities had a positive month (+0.7%) with continued reopening.

Asian equities were positive (+1.7%) with Chinese equities stable (-0.6%) as the government continued but de-escalated their regulatory crackdown. Japan (+2.2%) was strong despite further lockdowns due to a spike in COVID-19 cases and some political instability. India had a very strong August (+10.0%).

Elsewhere, Brent Crude (-7.4% in USD) was weak after making recent highs with global economic peak growth fears, while Gold was flat and the US Dollar (DXY +0.5%) was neutral.

Key contributors included:

  • Software/Internet – Developed Markets cluster, including Facebook through the higher monetisation potential of newly announced advertising features in Instagram Shop, and Microsoft after announcing price increases on its more than 300m paid seats in Office 365.
  • Software/Internet – Asia/EM cluster, including JD.com after announcing strong results highlighting user growth and broader long term margin improvement. Domestic regulation targeting forced exclusivity practices improved sentiment on hopes it could broaden availability of brands on the platform. Meituan also reported strong results with user growth above expectations and improving margins driven by delivery efficiency.
  • Trip.com, in the Consumer Cyclicals – Asia/EM cluster, after recovering from a sharp sell off as it became evident that China was able to quickly contain the recent COVID-19 outbreak of the delta variant.
  • EDF, in the Infrastructure/Property – Developed Markets cluster, which benefitted from strength in gas prices.
  • Siemens, in the Industrials cluster, after strong quarterly results, led by the automation business, saw an increase in full year guidance.

Key detractors included:

  • Consumer Defensive – Asia/EM cluster, notably Wuliangye which underperformed amidst a sell off with other premium consumer goods in China, and Ping An Insurance after a reduction in its agent force raised concerns that the weakness in new business will continue into the second half of the year.

Net performance (%)

Past performance is not a reliable indicator of future performance Returns are quoted in NZD and net of applicable fees, costs and taxes. All p.a. returns are annualised.

Total exposure 1 (%)

wdt_ID Composition Weight

1 All exposures contained within this report are with respect to the weight

Top 10 equity longs (%)

Fund Facts

wdt_ID Characteristics -

Sector exposure1 (%)

2Antipodes classification

Asset allocation3

3Call (put) options represented as the current option value (delta adjusted exposure)

Currency exposure3,4 (%)

4Where possible, regions, countries and currencies classified on a look through basis

Regional exposure 2,3,4 (%)

Market cap exposure3 (%)

Investment Manager

• Global pragmatic value manager, long only and long-short

• Structured to reinforce alignment between investors and the
investment team

• We attempt to take advantage of the market’s tendency for irrational
extrapolation, identify investments that offer a high margin of safety
and build portfolios with a capital preservation focus

Fund features

• Objective to achieve absolute returns in excess of the benchmark over the investment cycle (typically 3-5 years)

• In the absence of finding individual securities that meet minimum risk-return criteria, cash may be held to maximum 25%

• Flexibility to hedge for risk management purposes:

▪ Currency exposure of the underlying stock position (net short currency position not permitted)

▪ Equity market exposure via exchange traded derivatives (limited to 10% of NAV)
• Leverage not permitted

Fund overview
wdt_ID Unit Class Units NZD (Accumulating)

4 As a percentage of the net asset value of the Fund per annum (Fee rate includes GST).5 The Performance Fee will be calculated daily in respect of a semi-annual performance period ending on 30 June and 31 December each year (or the immediately preceding Business Day if not a Business Day) (each a Performance Period). The performance fee above has a ‘high water mark’. This means it is calculated on a cumulative basis relative to the Benchmark Index so that any performance under the Benchmark Index in a particular period must first be recovered in following periods before performance fees are paid.
6 When you enter or leave a Fund, any buy or sell spreads applicable at that time will be a cost to you. The buy spread is added to the Unit price on entry to the Fund, and the sell spread is deducted from the Unit price on exit from the Fund. The buy/sell spreads belong to the Fund and the purpose of buy/sell spreads is to make sure that any transaction costs incurred as a result of an investor entering or leaving the Fund are borne by that investor, and not by other investors in the Fund. There is no GST charged on buy/sell spreads.
For further information regarding the Antipodes Global Fund – Long (PIE), please refer to the Product Disclosure Statement (PDS). The PDS is available from
www.iisolutions.co.nz/library or www.antipodespartners.com.

Further information

1300 010 311
invest@antipodespartners.com

Disclaimer

THIS FUND FACT SHEET PERTAINS TO THE FOLLOWING:
Antipodes Global Fund – Long (PIE) (the “Fund”)

This Fact Sheet is provided by Antipodes Partners Limited (Antipodes) in good faith and is designed as a summary to accompany the Product Disclosure Statement for the Antipodes Investment Funds (Funds). The Product Disclosure Statement is available from Antipodes, or the issuer Implemented Investment Solutions Limited (IIS) on www.iisolutions.co.nz/library, and on https://disclose-register.companiesoffice.govt.nz/. The information contained in this Fact Sheet is not an offer of units in the Funds or a proposal or an invitation to make an offer to sell, or a recommendation to subscribe for or purchase, any units in the Funds. If you are making an investment directly then you will be required to complete the application form, which can be obtained from the Manager, IIS. The information and any opinions in this Fact Sheet are based on sources that Antipodes believes are reliable and accurate. Antipodes, its directors, officers and employees make no representations or warranties of any kind as to the accuracy or completeness of the information contained in this fact sheet and disclaim liability for any loss, damage, cost or expense that may arise from any reliance on the information or any opinions, conclusions or recommendations contained in it, whether that loss or damage is caused by any fault or negligence on the part of Antipodes, or otherwise, except for any statutory liability which cannot be excluded. All opinions reflect Antipodes’ judgment on the date of this Fact Sheet and are subject to change without notice. This disclaimer extends to IIS, and any entity that may distribute this publication. The information in this Report/Presentation is not intended to be financial advice for the purposes of the Financial Advisers Act 2008 or the Financial Markets Conduct Act 2013. In particular, in preparing this document, Antipodes did not take into account the investment objectives, financial situation and particular needs of any articular person. Professional investment advice from an appropriately qualified adviser should be taken before making any investment. Past performance is not cessarily indicative of future performance, unit prices may go down as well as up and an investor in the fund may not recover the full amount the capital that they invest. No part of this document may be reproduced without the permission of Antipodes or IIS. IIS is the issuer and manager of the Funds. Antipodes is in the investment manager of the Funds. Options exposure represents the market downside. For put options (typically used to limit potential downside) delta-adjusted exposure is used and for call options (typically used to capture potential upside) exposure is calculated using the current option value.