|
|
Investec GSF Global Dynamic Fund A Acc - News
|
|
|
|
|
Investec GSF Global Dynamic comment - Dec 09
|
|
Thursday, 25 March 2010
|
Fund Manager Comment
|
Market Background
Global equity markets continued to move ahead in December as investor confidence levels maintained an upward trend helped by continued positive economic news and low interest rates. This was in spite of a large amount of new issuance, particularly from the banking sector.
Industrial and technology stocks led the trend, reflecting expectations of further recovery during 2010 and positive news flow regarding sales and industrial production levels over the course of the month. The healthcare sector also enjoyed some renewed interest following the ratification of separate bills for US healthcare reform by both the Senate and the House of Representatives, with both excluding a public plan option (where the State provides healthcare in place of the private sector). The final draft of the bill remains to be fine tuned but there is a growing belief that the legislation could prove less onerous for healthcare companies than had been initially feared.
Financial stocks generally underperformed after a huge amount of new issuance from the banks in an attempt to free themselves from the Troubled Asset Relief Programme (TARP) restrictions and to bolster capital ratios. Citigroup, Wells Fargo, Bank of America, Lloyds and Mitsubishi UFJ all raised billions of dollars in the capital markets at a time when concerns over new Basel 3 regulatory requirements regarding leverage and capital are causing uncertainty in the sector.
Oil stocks did little during the month, as both Exxon and Total moved to make acquisitions (the former for XTO Energy and the latter for Chesapeake Energy) and mining stocks were also held back by a recovery in the US dollar. It has been interesting however that in the latter part of the month, metal and oil prices began to rise again despite further appreciation of the currency.
Japan also saw a reversal in its currency. This was accompanied by a sharp recovery in export related stocks in Tokyo as investors perceived that competitive advantage was being gained from a cheaper yen.
Overall, market volumes remained low and volatility declined in December, perhaps the most important indicator that the normalisation process taking place in the world's capital markets continues apace.
Fund Performance
The Fund returned 2.1% over the month ('A' shares, net of fees, in US dollars) while the MSCI World Index returned 1.8%.
The Fund's marginal outperformance was delivered entirely from stock selection. The resources sector added the most value as chemical stocks within the Fund performed well after our investment process correctly steered us into the sector several months ago. Speciality chemical stocks such as Nitto Denko and LG Chem are benefitting from strong demand from the technology sector. The industrials sector also performed strongly, in particular, engineering and construction company Chicago Bridge & Iron.
Banks eased during the month on concerns over momentum in the credit markets and weaker trading volumes amongst the investment banks. Our performance within the sector was down with weakness in Citigroup being the main detractor. Several of our general retailing stocks that play to the value segment suffered in the month, including eBay and Wal-Mart.
Overall however, a satisfactory month and finish to 2009.
Portfolio Activity
Significant purchases
Significant purchases included MasterCard and ArcelorMittal.
Significant Sales
Significant sales included Banco Bilbao and The Travelers Companies.
Market Outlook
Entering 2010, we believe the world's equity markets are in reasonable condition. Functionality in the credit markets has returned and equity raising in both the primary and secondary markets has gathered momentum, further enhancing the general strength of corporate balance sheets. Money has now begun the next stage in the transition from cash to bonds and is moving strongly to equities as risk appetite continues to grow as a result of greater confidence and the paucity of alternative income producing assets.
In our view, this process is likely to continue through 2010, although government support for capital markets may be gradually withdrawn and the funding markets would then have to function without it. We also worry about the extent of the legislative wave that approaches the financial sector and how the balance between capital adequacy and provision of finance to the corporate and consumer sectors is achieved.
Following on from a year where deep value has been rewarded, we look to 2010 as the year when those corporations that succeed in delivering an enhanced operating performance at a time of muted, but positive economic performance may be rewarded by the investment community. Especially as clear value opportunities are likely to be significantly less prevalent (with perhaps the exception of the financial sector).
We would also anticipate a stronger focus on quality as institutional money flows to equities. Quality companies have been broadly neglected as buyers have looked for cyclical exposure rather than size and strength and this group appears good value relative to its history.
In this context, we expect further progress for markets in the medium term but anticipate more broadly based leadership where quality is added to the mix of value and momentum factors.
|
| |
|
Investec GSF Global Dynamic comment - Sep 09
|
|
Tuesday, 15 December 2009
|
Fund Manager Comment
|
Quality companies able to deliver above-average earnings growth have an evergreen appeal regardless of market conditions. The challenge is identifying those companies with genuinely sustainable growth, whose share prices do not fully reflect their potential. The Global Dynamic Fund is able to choose its investments from companies that are expected to benefit from Asia's robust economic growth or expansion opportunities in other emerging markets, and blend them with giant companies in America's sophisticated market or firms that stand to gain from the expansion of the European Union.
Investec Asset Management uses a proprietary bottom-up stock-picking method designed to buy attractively valued companies, with good track records and an improving earnings outlook, which are gaining increasing investor attention. The Fund invests in a diverse range of companies, involved in a variety of industries. Performance is related to global equity markets: when company earnings are growing or companies are cheap equities - and the Fund - are likely to perform well; and when earnings are falling or companies are expensive the opposite is likely to happen.
|
| |
|
Investec GSF Global Dynamic comment - Mar 05
|
|
Tuesday, 16 August 2005
|
Fund Manager Comment
|
Global equity markets offer a diverse range of opportunities to investors. Investing in more than one market can reduce risk and improve returns by holding, in a single portfolio, strong companies that are subject to different operating and economic conditions.
The Fund is able to choose its investments from companies that are likely to benefit from Asia's robust economic growth or expansion opportunities in other emerging markets, and blend them with giant companies in America's sophisticated market or firms that stand to gain from the development of the European Union. Diversification has proved a sensible investment strategy as global stock markets have produced mixed performances.
The Fund takes a broadly sector neutral approach, with investments spread across defensive stocks and those more exposed to the global economic cycle. The manager uses a proprietary stock picking approach to focus the Fund's holdings on attractively valued companies with strong performance records and an improving earnings outlook that are receiving growing investor attention. The majority of its investments are in developed markets, such as America and Europe, with a smaller exposure to emerging markets.
The global economy continues to grow, driven particularly by America and Asia and, while the gains in corporate profitability are slowing, equities are still taking some support from reasonable company results. Going forward, the Fund's stock picking approach aims to continue to add value by focusing on shares expected to outperform.
|
| |
|
Investec AF Global Equity comment - Dec 04
|
|
Friday, 28 January 2005
|
Fund Manager Comment
|
Global equity markets offer a diverse range of opportunities to investors. Investing in more than one market can reduce risk and improve returns by holding, in a single portfolio, strong companies that are subject to different operating and economic conditions.
The Fund is able to choose its investments from companies that are likely to benefit from Asia's robust economic growth or expansion opportunities in other emerging markets, and blend them with giant companies in America's sophisticated market or firms that stand to gain from the development of the European Union. Diversification has proved a sensible investment strategy as global stock markets have produced mixed performances.
The Fund takes a broadly sector neutral approach, with investments spread across defensive stocks and those more exposed to the global economic cycle. The manager uses a proprietary stock picking approach to focus the Fund's holdings on attractively valued companies with strong performance records and an improving earnings outlook that are receiving growing investor attention. The majority of its investments are in developed markets, such as America and Europe, with a smaller exposure to emerging markets.
Economic data signalling the health of the major economies shows sustained growth, albeit at a more normal level and corporate profitability remains strong, which is likely to provide some support to equities. Going forward, the Fund's stock picking approach aims to continue to add value by focusing on shares expected to outperform.
|
| |
|
Investec AF Global Equity comment - Jun 04
|
|
Tuesday, 17 August 2004
|
Fund Manager Comment
|
Global equity markets offer a diverse range of opportunities to investors. Investing in more than one market can reduce risk and improve returns by holding, in a single portfolio, strong companies that are subject to different operating and economic conditions. The Fund is able to choose its investments from companies that are likely to benefit from Asia's robust economic growth or expansion opportunities in other emerging markets, and blend them with giant companies in America's sophisticated market or firms that stand to gain from the development of the European Union. Diversification has proved a sensible investment strategy as global stock markets have produced mixed performances.
The Fund takes a broadly sector neutral approach, with investments spread across defensive stocks and those more exposed to the global economic cycle. The manager uses a proprietary stock picking approach to focus the Fund's holdings on attractively valued companies with strong performance records and an improving earnings outlook that are receiving growing investor attention. The majority of its investments are in developed markets, such as America and Europe, with a smaller exposure to emerging markets.
Investor sentiment has improved considerably over the past year and economic data signalling the health of the major economies has shown distinct improvement. Going forward, the Fund's stock picking approach aims to continue to add value by focusing on shares expected to outperform.
|
| |
|
Investec AF Global Equity comment - Dec 03
|
|
Thursday, 12 February 2004
|
Fund Manager Comment
|
Global equity markets offer a diverse range of opportunities to investors. Investing in more than one market can reduce risk and improve returns by combining strong companies that are subject to different operating and economic conditions. The Fund is able to choose its investments from Asia's burgeoning growth, promising companies in other emerging markets, giant companies in America's sophisticated market or firms benefiting from the development of the European Union. Diversification has proved a sensible investment strategy as global stock markets have produced mixed performances.
The Fund takes a broadly sector neutral approach, with investments spread across defensive stocks and those more exposed to the global economy. The manager uses a proprietary stock picking approach to focus the Fund's holdings on attractively valued companies with strong performance records and an improving earnings outlook that are receiving growing investor attention. The majority of its investments are in developed markets, such as America and Europe, with a small exposure to emerging markets.
Investor sentiment has improved considerably in the past few months and economic data signalling the health of the major economies has shown distinct improvement. Going forward, the Fund's stock picking approach aims to continue to add value by focusing on shares expected to outperform.
|
| |
|
Investec AF Global Equity comment - Jun 03
|
|
Tuesday, 12 August 2003
|
Fund Manager Comment
|
Global equity markets offer a diverse range of opportunities to investors. Investing in more than one market can reduce risk and improve returns by combining strong companies that are subject to different operating and economic conditions. Global equity investors could choose from Asia's burgeoning growth, promising companies in other emerging markets, giant companies in America's sophisticated market and firms benefiting from the development of the European Union. Diversification has proved a sensible investment strategy as global stock markets have produced a mixed performance.
The fund takes a broadly sector neutral approach, with investments spread across defensive stocks and those more exposed to the global economy. It is currently biased towards mid cap stocks, such as US mortgage related financials, US and Spanish house builders and managed healthcare stocks. The manager uses a proprietary stock picking approach to focus the fund's holdings on attractively valued companies with strong performance records and an improving earnings outlook that are receiving growing investor attention. Most of its investments are in developed markets, like America and Europe, with a small exposure to emerging markets.
Investor sentiment has improved considerably in the past few months, though economic data signalling the health of the major developed economies remains mixed. Going forward, the fund's stock picking approach aims to continue to add value by focusing on shares likely to outperform.
|
| |
|
Investec Global Growth name change
|
|
Friday, 20 June 2003
|
Official Announcement
|
With effect from 01 July 2003, the Investec Global Growth Fund changed its name to Investec Global Equity Fund.
|
| |
|
Investec AF Global Growth comment - September 2002
|
|
Wednesday, 20 November 2002
|
Fund Manager Comment
|
The key feature of the Fund is its rigorous investment process. We use a highly disciplined bottom up process to build a relatively focused portfolio. Although the weightings to the major industry sectors are broadly in line with those of the benchmark MSCI World index, the Fund is very much an actively managed portfolio. In selecting stocks we use a proprietary system that takes into account factors such as valuations, earnings momentum, price momentum and financial strength. We use quantitative tools to evaluate the positions that the Fund is taking relative to the benchmark and to control tracking error.
The Fund has been unable to escape the effects of the recent falls in global stockmarket. However, the Fund has benefited from the overweighting to medium-capitalisation stocks that have been highlighted as a result of the screening process. In addition, the Fund had comparatively little exposure to the major telecommunications companies that were sold down sharply, or to the prominent groups which were at the heart of the various accounting scandals.
Going forward, the Fund's distinctive approach should, we believe, continue to add value. There are still a number of individual stocks with established franchises and strong competitive positions that have been oversold.
|
| |
|
Investec AF Global Growth comment - June 2002
|
|
Monday, 9 September 2002
|
Fund Manager Comment
|
The weakness of global stockmarkets continued in June. The economic statistics that were released in Europe and the USA in June were generally positive, but mixed. Major central banks kept rates on hold and a number of commentators fretted about the possibility that the global economy might endure a "double dip". Stockmarkets in general, and "new economy" areas in particular, were extremely volatile: the Worldcom scandal highlighted how the earnings of many companies that appeared to be growing rapidly through the late 1990s may have been grossly overstated. A wide variety of prominent companies issued profit warnings and/or remarked on how operating conditions remain difficult.
Your Adviser remains confident that the Fund's disciplined, bottom up, approach to stock selection will continue to deliver superior results. Over the last month or so, the Fund's approach has determined that it is somewhat overweight to North America, somewhat underweight to continental Europe and very underweight to Japan. Your Adviser is concerned that global investors fail fully to appreciate the implications for individual stocks of the economic slowdown and structural problems in Japan. Relative to the benchmark MSCI World Index, style bias and tracking error have been reduced.
|
| |
|
|
