11 Jul Munro Global Growth Fund Monthly Report – June 2018
The Munro Global Growth Fund returned +1.1% for the month of June, comprising a return of +0.2% from equities and +0.9% from currency. The MSCI AC World Index (AUD) meanwhile returned +1.9% (+0.0% from equities and +1.9% from currency). For the Financial Year, the Munro Global Growth Fund returned +21.0% and the MSCI AC World Index (AUD) returned +15.0%.
Global equity markets were mixed for the month of June, with the gain in the US S&P 500 up 0.6% largely offset by declines in the European STOXX index -0.6% and Japanese TOPIX -0.9%; and the significant decline in the Hang Seng -4.5%.
The key event for the month was the increasing threat of a trade war between the US and China. The rhetoric from both sides picked up fervour during the month, with back and forth barbs taking their toll after a strong start to the month for the global equities market.
From a stock perspective, the best performers were Blue Prism, Activision Blizzard and Amazon. Detractors included Marathon Petroluem, Delek Refining and Raytheon. On currencies, the Fund remains predominately hedged, however we have started to reduce the hedging of the US stock exposure with a 37% holding in USD. Given the AUD depreciated versus the USD during June, this resulted in an 91bps gain for the Fund. By comparison, the fully unhedged index gained 186bps.