Video Script
Hello, it's Zehrid Osmani, Portfolio Manager for the Martin Currie Global Portfolio Trust. As far as the market is concerned, it's been a quarter of mixed moves.
Global equities are down 1.1%. International equities declined by 3% and European equities were up 0.7%. The weakest sector was consumer discretionary, geographically, Brazil, and China were particularly weak, which dragged down Emerging Markets equities.
The China weakness was related to the ever-grande default concerns in the real estate sector. The common prosperity policy initiatives and regulatory focus on anti-monopolistic behaviours, as well as conspicuous consumption, clamp down impacting the consumer sector, notably luxury goods.
There were concerns around the loss of momentum in the economic leading indicators as well. At the same time as monetary policies are anticipated to move into tightening mode. A lack of follow through in approving the Biden infrastructure program also didn’t have the market gain comfort by the economic momentum.
It was a quarter that was challenged by the months of September that saw a sizeable sell off in growth and quality stocks globally.
In the global funds, Masimo, Resmed, Kingspan, Hexagon, Nvidia and Linde were notable positive contributors, Farfetch, Alibaba, Kering, Tencent, Adidas and Moncler were noticeable negative contributors alongside Wuxi Biologics and Illumina. These were stocks that were in particular hit by the China concerns.
Important Legal Information
This information is issued and approved by Franklin Templeton Investment Management Limited (FTIML). It does not constitute investment advice.
The information provided should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions discussed here were or will prove to be profitable. These opinions are not intended to be a forecast of future events, research, a guarantee of future results or investment advice.
Past performance is not a guide to future returns. The return may increase or decrease as a result of fluctuations in the markets, in currency and/or in the portfolio.
Market and currency movements may cause the capital value of shares, and the income from them, to fall as well as rise and you may get back less than you invested.
The analysis of Environmental, Social and Governance (ESG) factors form an important part of the investment process and helps inform investment decisions. The strategy does not necessarily target particular sustainability outcomes.
The opinions contained in this document are those of the named manager(s). They may not necessarily represent the views of other Martin Currie managers, strategies or funds.
Shares in investment trusts are traded on a stock market and the share price will fluctuate in accordance with supply and demand and may not reflect the value of underlying net asset value of the shares. The majority of charges will be deducted from the capital of the company. This will constrain capital growth of the company in order to maintain the income streams.