AtlasTrend November 2022 Portfolio Scoop
All developed markets rallied as investors took warmly to China potentially opening its economy. Hong Kong markets surged after months of underperformance with the HSI and HSCEI Indices, up +29.62% and +29.07% respectively (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.
November Highlights
All developed markets rallied as investors took warmly to China potentially opening its economy after 3 years of coronavirus lockdowns and its zero-tolerance policy.
Hong Kong markets surged after months of underperformance with the HSI and HSCEI Indices, up +29.62% and +29.07% respectively (local prices). China’s Shanghai Composite Index was also +8.91% up (local price).
No major developed market indices were in the negative. However, the AUD rallied +5.73% versus the USD, thereby dampening AUD returns of the markets and Trends. This saw the major U.S. indices all in negative territory in AUD terms.
The monthly performances across our Trends were -0.24%, +3.44% and +2.17% the Big Data, Online Shopping and Clean Disruption Trends respectively (versus MSCI World ex Australia Index of +2.02%).
In the last 12 months, we have delivered performances of -17.79%, -20.18% and -4.85% for the Big Data, Online Shopping Spree, and Clean Disruption Trends respectively (versus MSCI World ex Australia Index of -5.89%).
In the last 6 months, we have delivered performances of -2.46%, -2.44% and +3.77% for the Big Data, Online Shopping Spree, and Clean Disruption Trends respectively (versus MSCI World ex Australia Index of +5.25%).
In the last 3 months, we have delivered performances of -2.37%, -2.43% and +1.38% for the Big Data, Online Shopping Spree, and Clean Disruption Trends respectively (versus MSCI World ex Australia Index of +6.43%).
Big Data Big Fund
The Trend return for the month was -0.24% and since launch (9 November 2015) is +91.52%.
This Trend has delivered a +9.64% return per annum since inception.
This Trend had a mixed month with its Chinese companies including JD.com and Tencent rallying off Chinese re-opening news. Other strong performers included Arista Networks, NCSoft, Digital Realty and Kyndryl.
Weaker names included Alarm.com, Splunk, Apple and Amazon. The latter is planning to cut about 10,000 jobs as it braces for slower growth and a possible recession. It follows other technology companies such as Meta, which is reducing 11,000 jobs and Twitter, which laid off half its workforce when Elon Musk took over ownership.
As of the end of November 2022, this Trend consisted of 18 companies.
Online Shopping Spree Fund
The Trend return for the month was +3.44% and since launch (9 November 2015) is +67.37%.
This Trend has delivered a +7.57% return per annum.
This Trend had a strong month as Chinese equities rallied and its Chinese positions such as JD.com, Netease, Alibaba, Meituan and Tencent outperformed. Other strong performers included Zalando, eBay and Expedia.
Although Alibaba reported a surprise loss after quarterly revenue stagnated, it gave an optimistic forecast due to the easing of restrictions that have weighed on the business. Meanwhile, Tencent plans to hand investors shares in the delivery company, Meituan as a dividend.
The weaker performers included Amazon and Disney – the latter recouped some of its losses, after it brought back former CEO, Bob Iger to replace his successor Bob Chapek. Iger was previously CEO for 15 years and has agreed to serve for two years while helping find a permanent replacement.
As of the end of November 2022, this Trend consisted of 17 companies.
Clean Disruption Fund
The Trend return for the month was +2.17% and since launch (6 November 2018) is +51.19%.
This Trend has delivered a +9.66% return per annum since inception.
This Trend had a positive month with strong performances from KLA-Tencor, Vestas Wind Systems, First Solar and Tomra Systems.
The Trend was let down by Algonquin as the company reported a 3Q 2022 loss. It gave a subdued forecast for 2023 and investors sold the stock in fears it may reduce its dividend.
As of the end of November 2022, 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.