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Munro Global Growth Fund Monthly Report – February 2019

The Munro Global Growth Fund returned 3.1% for February, comprising a return of 2.1% from equities and 0.9% from currency. The MSCI AC World Index (AUD) meanwhile returned 5.2% (3.1% from equities and 2.2% from currency).

Munro Global Growth Fund Monthly Report – February 2019

The global equity market strength was broad based during February, with the US S&P 500 adding +3.2%, Euro Stoxx 600 increasing +4.2%, the Japanese Nikkei rose +3% and Hong Kong’s Hang Seng climbed +2.7%.

The US Federal Reserve outlook remained patient on rate increases during the month, helping to buoy global equites. The ongoing US and China trade dispute rhetoric that has shaken markets for much of the past twelve months, softened in nature.

In terms of stock specific highlights, Munro Partners’ Digital Payments Area of Interest was a strong contributor adding 93bps, with particularly positive results from WorldPay, the US online payments processing company. Danaher, the US designer and manufacturer of medical and environmental products added 39bps following the acquisition of GE Biopharma. On the negative side, exposure to US managed care providers, UnitedHealth and Centene, were caught up in adverse headlines from far-left Democrat candidates, that if elected would threaten the status quo for these companies.

On currencies, the Fund is roughly 60% hedged back to AUD and 40% exposed to USD and hence the depreciation in the AUD resulted in 94bps of gains for the fund. By comparison, the fully unhedged index gained 216bps from FX movements.

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