AtlasTrend October 2022 Portfolio Scoop
Most developed markets saw a bounce back as investors began to anticipate a slowing to monetary tightening. The strongest markets were U.S. Down Jones Industrial Index, up +13.95% and the U.S. Russell 2000 Index, up +10.94% (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.
October Highlights
Most developed markets saw a bounce back as investors began to anticipate a slowing to monetary tightening that could bolster asset prices and some corporate earnings that surprised on the upside.
The strongest markets were U.S. Down Jones Industrial Index, up +13.95% and the U.S. Russell 2000 Index, up +10.94% (local prices). Although the U.S. NASDAQ Index was up +3.90% (local price), it underperformed as growth stocks remained subdued given the news of large-scale layoffs at technology companies.
Hong Kong markets remained weak as the HSCEI Index and the HSI Index, were down -16.49% and -14.72% respectively (local prices). China’s Shanghai Composite Index was also down -4.33% (local price).
The monthly performances across our Trends were +1.79%, +0.64% and +3.14% for the Big Data, Online Shopping and Clean Disruption Trends respectively (versus MSCI World ex Australia Index of +7.81%).
In the last 12 months, we have delivered performances of -13.88%, -21.56% and -6.14% for the Big Data, Online Shopping Spree, and Clean Disruption Trends respectively (versus MSCI World ex Australia Index of -4.33%).
In the last 6 months, we have delivered performances of -5.47%, -12.16% and +2.12% for the Big Data, Online Shopping Spree, and Clean Disruption Trends respectively (versus MSCI World ex Australia Index of +2.31%).
In the last 3 months, we have delivered performances of -4.27%, -5.86% and -1.79% for the Big Data, Online Shopping Spree, and Clean Disruption Trends respectively (versus MSCI World ex Australia Index of +1.68%).
Big Data Big Fund
The Trend return for the month was +1.79% and since launch (9 November 2015) is +91.98%.
This Trend has delivered a +9.80% return per annum since inception.
This Trend had a positive month although it underperformed broader developed markets due to overall weakness of the technology sector and Chinese companies including JD.com and Tencent. Other weaker names included Amazon, Spotify, Seagate and Alarm.com. A key driver of weakness was growing pressure on corporate IT budgets, digital ad spending and weak demand for chips in the industrial machinery.
The strongest performers were Yext, Kyndryl, IBM, Salesforce.com, NCSoft, Apple and Intel. After some weakness in recent months, Intel bounced back despite news of major job cuts, cutting costs amid a weakening global PC market, where worldwide shipments of desktop and laptop computers fell by 19.5% in 3Q 2022.
As of the end of October 2022, this Trend consisted of 18 companies.
Online Shopping Spree Fund
The Trend return for the month was +0.64% and since launch (9 November 2015) is +61.80%.
This Trend has delivered a +7.14% return per annum.
Like the Big Data Trend, this Trend had a positive month although it underperformed broader developed markets due to overall weakness of the technology sector and Chinese companies including JD.com, Netease and Tencent.
Amazon was also weak as its 4Q 2022 sales forecast of US$140 billion to US$148 billion fell short of analyst expectations of $156 billion. Apple posted weaker-than-expected iPhone and services sales in its results, although overall revenue growth was strong.
The main positive contributors were Zalando, Disney, TheRealReal, Target and Apple.
As of the end of October 2022, this Trend consisted of 17 companies.
Clean Disruption Fund
The Trend return for the month was +3.14% and since launch (6 October 2018) is +47.99%.
This Trend has delivered a +9.31% return per annum since inception.
This Trend had a strong month with positive performances being led by Rockwool, Xylem, First Solar, Schneider Electric and Bristol-Myers-Squibb. Weakness was led by Tomra Systems, BYD, Varta and Fanuc.
As of the end of October 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.