04 Oct Munro Global Growth Fund Monthly Report – September 2018
The Munro Global Growth Fund returned +0.9% for the month of September, comprising a return of +1.1% from equities and -0.2% from currency. The MSCI AC World Index (AUD) meanwhile returned +0.4% (+0.5% from equities and -0.1% from currency).
Global equity markets were largely positive for the month of September, with gains in the US S&P 500 up 0.6%, the European STOXX index up 0.3% and Japanese TOPIX a standout +6.1%; whilst Emerging Markets were down -0.5%. The global economic expansion remained intact this month, with reasonable economic data coming out of the US and Japan outweighing trade war rhetoric, to which markets have become somewhat accustomed.
From a stock perspective, the best performers were Activision Blizzard, the US-listed video game publisher; Blue Prism, the Robotic Process Automation (RPA) company; and Boeing, the US aircraft manufacturer. The detractors included semi-conductor equipment maker ASML and the US-listed infrastructure software provider Nutanix.
On currencies, the Fund maintains exposure to the USD, with a 48% holding. Given the AUD appreciated versus the USD during June, this resulted in a 23bps loss for the Fund. By comparison, the fully unhedged index lost 13bps, with losses on the USD offset by gains on the Euro, Yen and GBP.