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Munro Global Growth Fund Monthly Report – May 2018

The Munro Global Growth Fund returned 2.8% for the month of May, comprising a return of +3.3% from equities and -0.5% from currency. The MSCI AC World Index (AUD) meanwhile returned -0.1% for the month (+0.9% from equities and -1.0% from currency).

Munro Global Growth Fund Monthly Report – May 2018

Key events for the month included political issues in Italy, with concerns that the country may be forced into another General Election where an ‘Italexit’ may be on the cards. Emerging markets fell with fears that the strengthening USD vs. EM currencies would impact the ability to repay USD-denominated debt. While elsewhere trade issues and trade war concerns continued to rumble on.

On a stock-specific basis, Blue Prism, the Robotics automation software firm, updated the market withpositive profit guidance. Meanwhile, several of the Fund’s holdings exposed to the Chinese consumer saw strong gains. On the negative side, the press reported that Treasury Wine Estates was having trouble with distributors in China. On currencies, the Fund remains predominately hedged with a 35% holding in foreign currencies mainly in USD. The USD fell modestly against the AUD in the month, resulting in a 46bps loss for the Fund from foreign exchange movements.

 

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