Monthly Updates

Antipodes Global Fund - Long

ARSN 118 075 764 APIR WHT0057AU
MONTHLY REPORT | 30 April 2021

Commentary

Global equity strength continued in April as a further supportive US fiscal backdrop boosted sentiment (+2.9%). Investors exhibited a preference for momentum and growth over low multiple – or value – stocks with Communication Services and Information Technology outperforming. Cyclical sectors such as Materials, Financials and Consumer Discretionary were also strong while Energy was the major laggard.

US equities (+3.9%) outperformed as US technology giants resumed leadership, helped by stabilising yields. President Biden’s speech to congress signalled further fiscal spending plans funded by new tax proposals. Europe (+3.1%) marginally outperformed as the trajectory for COVID-19 vaccinations improved.

Asia (-0.4%) underperformed as Japan (-2.9%) weighed due to rising COVID-19 infections, a slow vaccine rollout, and a new state of emergency. China (+0.9%) lagged as regulators cracked down on the abuse of market dominance by internet companies. Also, concerns of a policy tightening from the People’s Bank of China (PBOC) weighed on sentiment.

Elsewhere, Brent Crude resumed its rally (+6.4% in USD) and Gold (+4.5% in USD) rebounded with the weaker USD (DXY -2.1%).

Key contributors:

  • Consumer Cyclical – Developed Markets, notably Capital One Financial and Wells Fargo as the prospect of a steepening yield curve amidst fiscal stimulus, vaccine rollouts and higher inflation expectations provide a positive outlook for net interest margins. Q1 results also highlighted excess provisions for credit losses in 2020 which will support future earnings upon release.
  • Hardware, notably MediaTek which reported strong first quarter growth in revenues, primarily in 5G handset chip sales, while also lifting near term guidance.
  • Software/Internet – Developed Markets including Facebook and Amazon with both reporting strong first quarter revenue beats on strength in their advertising businesses.

Key detractors:

  • Industrials, notably VW after a sustained period of outperformance over the prior two quarters.
  • Consumer Cyclical – Asia/EM notably HDFC Bank as resurgent COVID-19 caseloads in India dampened the near term outlook for cyclical parts of the market.
  • Software/Internet – Asia/EM notably JD.com amidst uncertainty around regulation of Chinese technology platforms, despite strong longer term growth prospects.

Net performance (%)

Past performance is not a reliable indicator of future performance. Returns are quoted in AUD and net of applicable fees, costs and taxes

Performance & risk summary1

1 All metrics are based on gross of fee returns in AUD terms. 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

Performance contribution2 (%)

2 Based on gross returns in AUD

Top & bottom sector contribution2,4 (%)

Fund facts

wdt_ID Characteristics -

Asset allocation3

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

Sector exposure3,4 (%)

4 Antipodes classification

Top 10 equity longs3 (%)

Currency exposure3,5 (%)

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

Regional exposure3,4,5 (%)

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 Ratings

Further information

1300 010 311
invest@antipodespartners.com

Australia Head Office

Antipodes Partners Limited
Level 35, 60 Margaret St
Sydney NSW 2000
Australia

UK Office

Antipodes Partners Limited
6th Floor, Nova North
11 Bressenden Place
London SW1E 5BY UK

Disclaimer

Disclaimer The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned November 2020) referred to in this document is limited to “General Advice” (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessment’s and at http://www.zenithpartners.com.au/RegulatoryGuidelines
The Lonsec Ratings (assigned February 2020) presented in this document are published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Ratings are limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial products. Past performance information is for illustrative purposes only and is not indicative of future performance. They are not a recommendation to purchase, sell or hold Antipodes products, and you should seek independent financial advice before investing in these products. The Ratings are subject to change without notice and Lonsec assumes no obligation to update the relevant documents following publication. Lonsec receives a fee from the Fund Manager for researching the products using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: http://www.beyond.lonsec.com.au/research-solutions/our-ratings.
Pinnacle Fund Services Limited (‘PFSL’) (ABN 29 082 494 362, AFSL 238371) is the product issuer of the Antipodes Global Fund – Long (ARSN 118 075 764) “the Fund”. The issuer is not licensed to provide financial product advice. You should consider the Product Disclosure Statement (PDS) in its entirety before making an investment decision. The current PDS of the Fund can be found on www.antipodespartners.com.
Antipodes Partners Limited (‘Antipodes’) ABN 29 602 042 035, AFSL 481580 is the investment manager of the Fund. Whilst Antipodes and PFSL 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 and PFSL 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.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.
Unless otherwise specified, all amounts are in Australian Dollars (AUD).
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.