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Munro Global Growth Fund Monthly Report – April 2019

The Munro Global Growth Fund returned 3.3% for April, comprising a return of 3.0% from equities and 0.3% from currency. The MSCI AC World Index (AUD) meanwhile returned 4.3% (3.6% from equities and 0.7% from currency).

Munro Global Growth Fund Monthly Report – April 2019

The global equity market strength was broad based during April, with the US S&P 500 adding +4.1%, Euro Stoxx 600 increasing +3.9%, the Japanese Nikkei rose +5.0% and Hong Kong’s Hang Seng climbed +2.3%.

Strong consumer spending data helped the S&P 500 hit record highs, whilst PMIs were more positive than expected in both the US and China.

In terms of stock specific highlights, the Fund’s investments in the Cloud Computing Infrastructure, Amazon with AWS and Microsoft with Azure, saw strong gains.

United Rentals, the US-based equipment rental company, also had good results and benefited from positive economic data providing a strong backdrop for future earnings. On the negative side, several short positions squeezed higher on results that weren’t as poor than feared or where the market was willing to give the stocks the benefit of the doubt that earnings had bottomed.

On currencies, the Fund is roughly 55% hedged back to AUD and 45% exposed to USD and hence the depreciation in the AUD resulted in 34bps of gains for the Fund, while the fully unhedged index gained 71bps.

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