06 Feb Munro Global Growth Fund Monthly Report – January 2018
The Munro Global Growth Fund returned 6.0% for the month of January, comprising a return of 7.3% from equities and -1.3% from currency. The MSCI AC World Index (AUD) meanwhile returned 2.0% for the month (4.1% from equities and -2.1% from currency).
It was a positive month for global equity markets, albeit with large divergences between the regions, the US S&P 500 was up 5.6%, the Hang Seng added 9.9%, the Japanese TOPIX rose 1.1% and the European STOXX index increased by 1.6%. Key events for the month included a strong US corporate earnings season which led to strong sell-side earnings upgrades, in part to factor in the effect of the Trump tax cuts. This lead to c.7% upgrade in earnings at the S&P index level and ultimately a strong move for the market.
Positive performance for the Fund was driven by Netflix which reported strong quarterly results; along with long-term core holdings Amazon and Blue Prism. On the negative side, BMW (short position), rose modestly; whilst Samsonite and Broadcom were both weak on limited news flow. On currencies, the USD continues to be weak against most currencies including the AUD, this resulted in a 128bps loss for the Fund from foreign exchange movements. By comparison, the fully unhedged index lost 208 bps from currencies.
For more information, please click below for the full monthly report: