05 Dec Munro Global Growth Fund Monthly Report – November 2017
The Munro Global Growth Fund returned 1.1% for the month of November, comprising a return of 0.7% from equities and 0.4% from currency. The MSCI AC World Index (AUD) meanwhile returned 3.0% for the month (1.3% from equities and 1.7% from currency).
The key event for the month was the progress of US Tax Reform. Late in the month the US Senate Budget Committee voted to send the tax bill to the Senate floor for a vote. This progress led to a market rotation into stocks that have high levels of domestic earnings and pay a high corporate tax rate. Stocks that were paying relatively low taxes were sold off to fund the trade.
On a stock-specific basis, the expediated progress of US tax reform caused some significant rotation in sector performance during November and consequently many of the fund’s more successful technology holdings were subject to some profit taking. Positive performance for the Fund was driven by Thor Industries; Tencent, the leading Chinese social media platform; and Kidman Resources, the Australian Lithium miner.