QUICK LINKS
The portfolio’s top performers for the month were Alphabet +7.9%, Eaton +6.7% and Adobe +6.2%, and worst included the Chinese holdings Alibaba -13.9% and Ping An -10.5%, along with Reckitt Benckiser -13.1%.
Many of the portfolio’s holdings reported their earnings in July. One of the most encouraging sets of results came from Alphabet who reported sales growth of 25% and earning per share growth of 31%, both 10% above consensus, as advertising continues to rebound. Reckitt Benckiser surprisingly disappointed and lowered earnings expectations for the full year by around 6% mostly due to input price inflation. Cost inflation has not been unique to the company, but in contrast to other staples companies the firm’s management of investor expectations has been poor. Our expectations for a turnaround in the company’s growth prospects remain intact but greater clarity ought to be provided at the company’s seminar in mid-September.
During the month, trims were made to CRH and Blackrock with the proceeds allocated to a modestly higher cash allocation. Our expectation is that higher quality stocks, such as those held in the portfolio, will perform more favourably in the more volatile market ahead.
The content or fund you have selected is not available for the profile or region you have selected. Please select one of the options below to return to the site.