AtlasTrend February 2023 Portfolio Scoop

 

Investors faced different economic signals from different economies. Europe and Japan were positive markets, led by France’s CAC Index, up +2.62% and the European EUTOSTOXX 50 Index, up +1.80% (local prices).

Written by Kevin Hua Co-founder & Chief Investment Officer

 
 

This information does not take into account your personal objectives, financial situation or needs. You should consider if the relevant investment is appropriate having regard to your own objectives, financial situation and needs.

 

February Highlights

  • Developed markets were mixed as investors faced different economic signals from different economies. The U.S. and Europe continues to deal with elevated inflation despite interest rates starting to impact employment numbers.

  • Europe and Japan were positive markets, led by France’s CAC Index, up +2.62% and the European EUTOSTOXX 50 Index, up +1.80% (local prices).

  • Weakness came from Chinese and U.S. markets as Hong Kong markets saw a steep turnaround form recent rallies. The HSI and HSCEI Indices were down -9.41% and -11.36% respectively (local prices) while the U.S. Down Jones Index was down -4.19% (local price).

  • However, the weakening of the AUD by +4.85% against the USD helped AUD returns for the Trends and indices.

  • The monthly performances across our Trends were +2.83%, -2.71% and +0.78% for the Big Data, Online Shopping and Clean Disruption Trends respectively (versus MSCI World ex Australia Index of +2.09%).

In the last 12 months, we have delivered performances of -8.99%, -12.5% and +1.43% for the Big Data, Online Shopping Spree, and Clean Disruption Trends respectively (versus MSCI World ex Australia Index of –0.48%).

In the last 6 months, we have delivered performances of -0.76%, -1.99% and +0.66% for the Big Data, Online Shopping Spree, and Clean Disruption Trends respectively (versus MSCI World ex Australia Index of +5.73%).

In the last 3 months, we have delivered performances of +1.65%, +0.44% and -0.71% for the Big Data, Online Shopping Spree, and Clean Disruption Trends respectively (versus MSCI World ex Australia Index of -0.65%).

Big Data Big Fund

The Trend return for the month was +2.83% and since launch (9 February 2015) is +94.68%.

This Trend has delivered a +9.55% return per annum since inception.

This Trend had another strong performance overall although individual performances were mixed. The Trend was led by Palo Alto Networks, Kyndryl, Arista Networks, Splunk and Yext. The weakest performers were Meituan, JD.com and Tencent as Chinese equities turned negative. Other weak names were Digital Realty, Intel, Alphabet and Amazon.

Amazon projected weaker revenue in the recent quarter while Alphabet’s 4Q 2023 results narrowly missed analysts’ expectations.

As of the end of February 2023, this Trend consisted of 19 companies.

 

Online Shopping Spree Fund

The Trend return for the month was -2.71% and since launch (9 February 2015) is +68.11%.

This Trend has delivered a +7.37% return per annum.

This Trend had a weaker performance due mainly to its Chinese exposure as Chinese equities turned negative. The weakest performers were Meituan, JD.com, Alibaba, Tencent, TheRealReal, Zalando, Electronic Arts and Netease. The best performances were from FedEx and Apple.

Despite its share price weakness, Alibaba’s results were very strong. Its profits rose by 69% after cost cuts at the company, which reduced its workforce by about 19,000 employees last year.

As of the end of February 2023, this Trend consisted of 17 companies. Tencent completed its 1:10 spin-off of its interest in Meituan.

Clean Disruption Fund

The Trend return for the month was +0.78% and since launch (6 February 2018) is +50.12%.

This Trend has delivered a +8.97% return per annum since inception.

This Trend had positive performances from IPG Photonics, Algonquin, Iberdrola, Schneider Electric and Vestas Wind Systems. Weakness came from Rockwool, BYD, Xylem, Bristol-Myers-Squibb and KLA-Tencor.

As of the end of February 2023, this Trend consisted of 18 companies.

Important notice

Any managed investment fund product (Fund) mentioned in this communication is offered via a Product Disclosure Statement (PDS) which contains all the details of the offer. The PDS is issued by Fundhost as responsible entity for the Funds. Before making any decision to make or hold any investment in a Fund you should consider the PDS in full. The PDS is available at www.atlastrend.com/pds or by calling AtlasTrend on 1800 589 778. The Target Market Determination is available here. A copy of AtlasTrend’s financial services guide can be found at www.atlastrend.com/fsg.

Investment returns are not guaranteed. Past performance is not a reliable indicator of future performance. Disclosed investment returns assume reinvestment of all distributions. For the Clean Disruption Fund performance is shown net of fees. For the remaining Funds performance is shown net of fees from 7 June 2018 and prior to that performance is shown gross of any fees. Click here for more details about current and previous fee arrangements.

 
 
 
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