InvestNow News – 28th August – Pathfinder – Monthly Review – July 2020
Article written by Pathfinder Asset Management – July 2020
MARKET COMMENTARY
Markets remain resilient, even though uncertainty is widespread. Amazingly, the US market which was down a third in March/April, has vaulted back, reaching new highs in August. This has been the fastest bear market and subsequent correction for the S&P 500 market index on record.
On the positive side, global corporate earnings have generally been better than feared, with US stocks in the technology sector in particular, such as Apple, beating market estimates by some margin. We continue to have a large allocation to technology stocks across our funds which continue to perform, and are driving the broader market higher.
There has been a huge divergence in results though, with some companies (such as Exxon Mobil) reporting its worst results in a generation.
This once again is proving the worth of our ESG approach, we avoid investment in the energy sector which remains in deep negative territory year to date. In fact, almost 30% of the largest 500 US companies remain in a bear market – i.e. down -20% or more.
Disclaimer: Pathfinder is a fund manager and does not give financial advice. Before making any decision to invest you should (a) consult your financial adviser and (b) read the Product Disclosure Statement. This report is for information purposes only. Opinions constitute Pathfinder’s judgment at the time of writing and are subject to change. All returns calculated after fees before tax using the unit price. Disclosure of interest: All of our staff invest in Pathfinder’s funds on the same terms as you.
The Global Water Fund and Global Responsibility Fund have been designated a Certified Responsible Investment by the RIAA (Responsible Investment Association Australasia). See www.responsibleinvestment.org for more details
*The Certification Symbol signifies that a product or service offers an investment style that takes into account environmental, social, governance or ethical considerations. The Symbol also signifies that the Pathfinder Global Water and Global Responsibility Fund Fund adheres to the strict operational and disclosure practices required under the Responsible Investment Certification Program for the category of Product Provider. The Certification Symbol is a Registered Trade Mark of the Responsible Investment Association Australasia (RIAA). Detailed information about RIAA, the Symbol and the Pathfinder Global Water Fund’s and the Pathfinder Global Responsibility Fund’s methodology, performance and stock holdings can be found at www.responsiblereturns.com.au, together with details about other responsible investment products certified by RIAA.
1. The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.
^Volatility is on a rolling 3 year basis, for funds with less than 3-years of history the calculation is from inception. All returns are shown after fees and at 0% PIR.
InvestNow News – 28th August – Pathfinder – Monthly Review – July 2020
Article written by Pathfinder Asset Management – July 2020
MARKET COMMENTARY
Markets remain resilient, even though uncertainty is widespread. Amazingly, the US market which was down a third in March/April, has vaulted back, reaching new highs in August. This has been the fastest bear market and subsequent correction for the S&P 500 market index on record.
On the positive side, global corporate earnings have generally been better than feared, with US stocks in the technology sector in particular, such as Apple, beating market estimates by some margin. We continue to have a large allocation to technology stocks across our funds which continue to perform, and are driving the broader market higher.
There has been a huge divergence in results though, with some companies (such as Exxon Mobil) reporting its worst results in a generation.
This once again is proving the worth of our ESG approach, we avoid investment in the energy sector which remains in deep negative territory year to date. In fact, almost 30% of the largest 500 US companies remain in a bear market – i.e. down -20% or more.
Disclaimer: Pathfinder is a fund manager and does not give financial advice. Before making any decision to invest you should (a) consult your financial adviser and (b) read the Product Disclosure Statement. This report is for information purposes only. Opinions constitute Pathfinder’s judgment at the time of writing and are subject to change. All returns calculated after fees before tax using the unit price. Disclosure of interest: All of our staff invest in Pathfinder’s funds on the same terms as you.
The Global Water Fund and Global Responsibility Fund have been designated a Certified Responsible Investment by the RIAA (Responsible Investment Association Australasia). See www.responsibleinvestment.org for more details
*The Certification Symbol signifies that a product or service offers an investment style that takes into account environmental, social, governance or ethical considerations. The Symbol also signifies that the Pathfinder Global Water and Global Responsibility Fund Fund adheres to the strict operational and disclosure practices required under the Responsible Investment Certification Program for the category of Product Provider. The Certification Symbol is a Registered Trade Mark of the Responsible Investment Association Australasia (RIAA). Detailed information about RIAA, the Symbol and the Pathfinder Global Water Fund’s and the Pathfinder Global Responsibility Fund’s methodology, performance and stock holdings can be found at www.responsiblereturns.com.au, together with details about other responsible investment products certified by RIAA.
1. The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.
^Volatility is on a rolling 3 year basis, for funds with less than 3-years of history the calculation is from inception. All returns are shown after fees and at 0% PIR.
