05 Mar Munro Global Growth Fund Monthly Report – February 2018
The Munro Global Growth Fund returned 0.1% for the month of February, comprising a return of -0.8% from equities and +0.9% from currency. The MSCI AC World Index (AUD) meanwhile returned -0.5% for the month, with a -3.6% move in equities and +3.1% from currency, with the falling AUD helping to flatter index returns.
February was a difficult month for stocks with an intra-month fall of approximately 10% for the US S&P 500, before the index ultimately recovered to finish the month with a 3.8% decline. Elsewhere, other major global markets were weak with the European STOXX index -4.0%, Hang Seng -6.1% and the Japanese TOPIX -3.7%.
Equity market volatility was caused by concerns around inflation and interest rates, with added impetus from the forced unwinding of geared funds positioned to short volatility. For the Fund, stocks positively contributing to performance for the month included Amazon and Netflix, which both continue to benefit from their strong January reports, while detractors included Alibaba and Take-Two Interactive. On currencies, the declining AUD benefited the Fund by 87 basis points (with the Fund maintaining 65% hedging back to the AUD). The fully unhedged index by comparison received a 310bps tailwind from foreign exchange movements.
For more information, please click below for the full monthly report: