02 Nov Munro Global Growth Fund Monthly Report – October 2017
The Munro Global Growth Fund returned 6.7% for the month of October, comprising a return of 6.1% from equities and 0.6% from currency. The MSCI AC World Index (AUD) meanwhile returned 4.5% for the month (2.7% from equities and 1.8% from currency).
The major event in the month was US Q3 reporting season. With over half the companies of the S&P500 now reported, 78% beat earnings forecasts and the aggregate earnings beat, at the index level, was 4.5%. A key takeaway were the positive moves in the so-called FANG (Facebook, Amazon, Netflix, Google) stocks, which many saw as fully priced, but have to date seen strong results and significant consensus earnings upgrades.
On a stock-specific basis, positive performance for the Fund was driven by Amazon, which reported strong sales growth, Sumco, and Blue Prism. On the negative side, Kion Group, the German machinery company, downgraded guidance of their recently acquired Dematic business.