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July saw many companies report earnings, with aggregate average sales and earnings growth of 4.6% and 11.0%, respectively, for all companies reporting globally.
In the USA, France, and UK, political transitions are expected following imminent elections. These “lame duck” periods can create uncertainty in markets as outgoing leaders finalise their terms.
Global equity markets rose in May. Overall, the FTSE All World Index gained 4.1% while the Ashburton Global Leaders Fund (I class USD) returned 4.3%. Outperforming stocks held during the month included Nvidia (26.9%), Apple (13%) and Ping An (10.1%).
Economists often use all available time or word count to explain the past, then offer a balanced view of the future. Ideally, investors would focus more on their long-term forecasts, valuations, and views, largely ignoring the near term.
March was another positive month for global equities with the FTSE All-World Index gaining 3.1%. The energy and materials sectors were particularly positive with the equity market rally broadening out from Artificial Intelligence (AI) stocks.
February 2024 saw the global equity market continue its recent pattern with share price momentum and companies with higher growth rates providing better performance. Index returns continue to be driven by the narrow number of companies delivering great earnings growth.
Global equity returns continued to be positive in December with the FTSE All World index (USD) climbing +4.8%.
November was a more positive month for equity markets with the FTSE All World Index gaining +9.2%.
The Ashburton Global Leaders Fund increased by 5.2%. Alibaba was the best performing holding increasing 22.6%.
The best-performing holders included both energy service companies Halliburton (+15.7%) and Schlumberger (+15.3%).
After month-end political agreement was reached on the debt ceiling and markets rallied.
Novartis surprised the market with a better than anticipated operational performance and uptake of new products.
The end of year rally of markets came to a halt in December with the final month of the year delivering negative returns. The FTSE All World index declined 3.7%.
Inflation data in the USA was again lower than expected. This resulted in expectations of a reduced pace of monetary tightening from the central banks. With liquidity still abundant, equity markets generally rose. The FTSE All World Index rose 7.9% while, buoyed by Chinese exposures, the Global Leaders fund (I class USD) outperformed gaining 10.4%.
After the 8.2% year on year inflation figure released in the USA mid-month, the US stock market opened sharply lower before producing one of the largest intraday swings in history ending close to 3% higher.
Global equity markets continued to decline in September with the FTSE All World index falling 9.5%, the Global Leaders Fund (I class USD) fell the same amount.
August was a month of two halves for equity investors. With much of the developed world on vacation, market volatility is often reduced and traded volumes can be more modest than normal.
The Global Leaders Equity model portfolio returned 1.3%, ahead of both the index and the -0.5% return of the EAA Fund Global Large Cap Blend Equity peer group.
During the month headline inflation in the United States reached over 5% for only the second time in 30 years. Financial conditions remain at their loosest levels in over 40 years. With this backdrop global equities continued to increase in price.
The Global Leaders Equity Fund (I class USD), was a little ahead of its benchmark largely due to strong performances from Alphabet, Kering and Amazon.
Dr James Cooke
Head of Global Equities
About
Dr James Cooke is the Head of Global Equities for Ashburton Investments (International). James joined us from Asset Risk Consultants (ARC) where he was an Investment Consultant responsible for advising high net worth clients, trusts and charities on investment strategy, strategic asset allocation and discretionary fund manager selection. Previously he was based in Edinburgh, as an Investment Manager with SVM Asset Management where he spent seven years working on their World Equity strategy and providing ideas for other funds. During his time at SVM, the firm was consistently ranked within the top 10 UK based fund manager groups by FundCalibre. Prior to this he was a full member of the investment committee at Edinburgh Partners, recently acquired by Franklin Templeton, then managing over $10bn of global equity investments. He maintains a keen interest in Corporate Governance having previously advised firms on these matters with Towers Perrin, now Willis Towers Watson, before joining the investment industry. James is a CFA charterholder and holds a BEng(Hons) degree in Chemical Engineering from the University of Edinburgh, both an MSc and a PhD in Biochemical Engineering from University College London.
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Kathy Davey
Investment Manager
Kathy covers global equities for Ashburton’s International team. She joined the team in South Africa in 2013 as an Equity Research Analyst for the African Equity Opportunities Fund, having moved home from the UK in 2010. Kathy has experience covering listed Pan-European retail stocks and South African listed retail sector. Kathy holds a Bachelor of Commerce (IT and accounting) degree from the University of the Witwatersrand, a Masters of Professional Accounting from the University of Southern Queensland, and is a CFA charterholder.
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