Global equity indices fell sharply during December, as geopolitical concerns, a slowing Eurozone and global monetary tightening continued to weigh on markets. In the U.S., the S&P 500 returned -9.0% after the Federal Reserve raised its benchmark lending rate range by 25bps and the U.S. government entered a partial shutdown, following political disagreement on its federal funding plans. In Europe, the FTSE 100, Euro STOXX 50 and German DAX all finished lower, returning -3.5%, -5.2% and -6.2% respectively, after weeks of protests led French President Emmanuel Macron to announce fiscal stimulus measures which could see the country’s fiscal deficit exceed the European Union’s 3% limit. In addition, U.K. Prime Minister Theresa May postponed the parliamentary vote on her Brexit deal. Australia’s S&P/ASX 300 Accumulation Index was the best performing developed global index, returning -0.2%. Energy (+6.5%), materials (+6.1%), and communication services (+5.5%) were the best performing sectors, whilst utilities (-4.5%), industrials (-0.9%) and health care (-0.5%) were the worst performers. Global bond yields fell during December. Bulk commodity prices generally rose during the month, with thermal coal and iron ore prices trading higher.Coking coal and oil declined. The U.S. Dollar rose against most of the G10 currencies except against the Euro, Japanese Yen and Swedish Krona.
Approaching the holiday period, December was a relatively quiet month in terms of portfolio news. Notably, Trade Me Group Limited (TME-AU) entered into an agreement under which funds advised by Apax Partners will acquire 100% of its shares for NZ$6.45 per share. As we move into 2019, the domestic market will set its focus on the upcoming February reporting season.
We remain confident that the companies in the portfolios will achieve attractive rates of revenue, EPS and DPS growth over the next five years, well ahead of the broader market.
|3 years p.a.||3.81||6.65||-2.84|
Performance is gross of fees and expenses.
Past performance is not a reliable indicator of future performance
OBJECTIVE: MEDIUM TO LONG-TERM CAPITAL GROWTH AND INCOME BY INVESTING IN HIGH CALIBRE AUSTRALIAN COMPANIES PRIMARILY LISTED WITHIN THE S&P/ASX 300, AT THE TIME OF INVESTMENT.
Hyperion named AUSTRALIAN FUND MANAGER OF THE YEAR in the Morningstar 2016 Awards, Australia.