AtlasTrend September 2022 Portfolio Scoop

 

September saw a significant sell-off in financial markets as the risk of a global recession heightened and the war in Ukraine escalated. Hong Kong markets were the weakest with the HSCEI Index and the HSI Index, down 13.85% and 13.69% 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.

 

September Highlights

  • September saw a significant sell-off in financial markets as the risk of a global recession heightened and the war in Ukraine escalated, thereby exacerbating the region’s energy crisis.

  • No developed markets avoided the sell-off with each of them ending the month in negative territory.

  • Hong Kong markets were the weakest with the HSCEI Index and the HSI Index, down 13.85% and 13.69% respectively (local prices).

  • A weaker AUD (-6.89% versus the USD) dampened AUD losses in the Trends and indices.

  • The monthly performances across our Trends were -3.85%, -6.26% and -3.79% for the Big Data, Online Shopping and Clean Disruption Trends respectively (versus MSCI World ex Australia Index of -3.23%).

In the last 12 months, we have delivered performances of -13.25%, -20.64% and -6.82% for the Big Data, Online Shopping Spree, and Clean Disruption Trends respectively (versus MSCI World ex Australia Index of -9.79%).

In the last 6 months, we have delivered performances of -11.81%, -14.17% and -1.37% for the Big Data, Online Shopping Spree, and Clean Disruption Trends respectively (versus MSCI World ex Australia Index of -8.11%).

In the last 3 months, we have delivered performances of -1.67%, -2.95% and +0.02% for the Big Data, Online Shopping Spree, and Clean Disruption Trends respectively (versus MSCI World ex Australia Index of +0.35%).

Big Data Big Fund

The Trend return for the month was -3.85% and since launch (9 November 2015) is +88.61%.

This Trend has delivered a +9.64% return per annum since inception.

This Trend had another weak month as markers continued their fall. The weaker names included Kyndryl, Seagate, Spotify, JD.com and Digital Realty. The only positive contributor was Yext.

As of the end of September 2022, this Trend consisted of 18 companies.

 

Online Shopping Spree Fund

The Trend return for the month was -6.26% and since launch (9 November 2015) is +60.78%.

This Trend has delivered a +7.13% return per annum.

This Trend underperformed versus its benchmark with the weakest names being TheRealReal, FedEx, JD.com and Tencent.

FedEx withdrew earnings guidance due to worsening business conditions, dragging the broader market down. The company cited weakness in Asia and Europe and said conditions could deteriorate further.

As of the end of September 2022, this Trend consisted of 17 companies.

Clean Disruption Fund

The Trend return for the month was -3.79% and since launch (6 September 2018) is +43.49%.

This Trend has delivered a +8.72% return per annum since inception.

This Trend was also weak but did have positive performances from First Solar and Bristol-Myers-Squibb. Weakness was led by Varta, Vestas Wind Systems and Rockwool.

Varta was especially disappointing as the company pointed to higher-than-expected energy and raw material costs as well as order delays causing it to withdraw its forecasts.

As of the end of September 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.

 
 
 
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