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The combination of higher government bond yields and an increase in geopolitical tensions in the Middle East resulted in a risk off move in October. Global equities were negative for the month in USD/AUD terms, however were higher in NZD due to exchange rate impacts (-3.0%). Utilities, information technology and consumer staples outperformed whilst consumer discretionary, industrials and energy underperformed. US equities outperformed (-2.3%) with macroeconomic data highlighting resilience within the economy despite a higher for-longer rate environment. Further, US treasury bonds fell due to fears of a forecast increase in treasury issuance. European equities underperformed as macroeconomic data disappointed (-3.7%) and central banks reinforced a higher-for-longer scenario.
Asian equities underperformed (-4.1%). Chinese equities were lower (-3.8%) despite positive economic data and more fiscal support. Continued property sector overhang in addition to the tighter US restrictions on firms exporting AI chips to China weighed on investor sentiment. Japanese equities underperformed globally and regionally (-4.5%) as the Bank of Japan tightened monetary policy in line with increasing inflationary data.
Elsewhere, Brent Crude (-8.3% in USD) was volatile but ended lower, Gold (+7.3%) was higher benefiting from a flight to safety, whilst the US Dollar (+0.5%) saw a marginal appreciation.
* Companies mentioned are illustrative only and not a recommendation to buy or sell any particular security.
Strategy is based on the Australian Unit Trust. This is a representative USD account only. The account is managed in AUD and converted USD. Returns are quoted in USD and gross of applicable fees. All p.a. returns are annualised. Past performance is not a reliable indicator of future performance.
| Band | Long | Benchmark |
|---|---|---|
| Mega (>$100b) | 24.3 | 25.7 |
| Large (>$25b <$100b) | 19.3 | 30.3 |
| Medium (>$5b <$25b) | 32.5 | 36.4 |
| Small (<$5b) | 19.2 | 7.5 |
| wdt_ID | Characteristics | - |
|---|
• Objective to achieve absolute returns in excess of the benchmark over the investment cycle (typically 3-5 years)
• The Fund invests in companies that are exposed to emerging markets or listed on emerging market stock exchanges
• In the absence of finding individual securities that meet minimum risk-return criteria, cash may be held to maximum 25%
â—‹ Currency exposure of the underlying stock position (net short currency position not permitted)
â—‹ Equity market exposure via exchange traded derivatives (limited to 10% of NAV)
â—‹ Leverage not permitted
• This product is likely to be appropriate for a consumer seeking capital growth to be used as a small allocation within a portfolio where the consumer has a minimum investment timeframe of 5 years, and a high risk/return profile.
1300 010 311
invest@antipodespartners.com
Antipodes Partners Limited
Level 25, Australia Square Tower
264 George Street
Sydney NSW 2000
Antipodes Partners Limited
6th Floor, Nova North
11 Bressenden Place
London SW1E 5BY UK
1 Based on gross returns in USD
2 GICS classification
3 Call (put) options represented as the current option value (delta adjusted exposure)
4 Antipodes classification
5 Where possible, regions, countries and currencies classified on a look through basis
6 All metrics are based on gross of fee returns in AUD terms since inception. The upside/downside capture ratio is the percentage of benchmark performance captured by the fund during months that the benchmark is
up/down. Standard deviation is a measure of risk with a smaller figure indicating lower return volatility. The Sharpe ratio measures returns on a risk adjusted basis with a figure > 1 indicating a higher return than the
benchmark for the respective levels of return volatility.
Antipodes Partners Limited (‘Antipodes’) (ABN 29 602 042 035, AFSL 481580) is the investment manager of the Strategy. Whilst Antipodes believe the information contained in this communication is based on reliable information, no warranty is given as to its accuracy and persons relying on this information do so at their own risk. Subject to any liability which cannot be excluded under the relevant laws, Antipodes disclaim all liability to any person relying on the information contained in this communication in respect of any loss or damage (including consequential loss or damage), however caused, which may be suffered or arise directly or indirectly in respect of such information. Any opinions and forecasts reflect the judgment and assumptions of Antipodes and its representatives on the basis of information at the date of publication and may later change without notice. This communication is for general information only. The information is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. This communication has been prepared without taking account of any person’s objectives, financial situation or needs. Past performance is not a reliable indicator of future performance.
This is a representative USD account only and does not reflect an actual return of a fund in USD. The represented performance figures utilized in the above performance chart are managed in AUD and converted to USD for indicative purposes only. These performance figures do not reflect the deduction of investment advisory fees and any return will be reduced by the advisory fees and any other expenses that may be incurred. The actual fees and expenses paid by a USD account will differ significantly from the AUD performance figures. Therefore, the performance figures contained in this document are estimates as determined by Antipodes to the best of its ability and Antipodes can provide, on a separate basis, further gross or net returns to any prospective client that requests such information. No representation is being made that any investment will, or is likely, to achieve profits or losses similar to those being shown. 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. Unauthorised use, copying, distribution, replication, posting, transmitting, publication, display, or reproduction in whole or in part of the information contained in this communication is prohibited without obtaining prior written permission from Antipodes.