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Market Commentary

Market Commentary – November 2018

Global equity market volatility continued in November (+1.5% USD, -1.5% AUD) with domestically orientated businesses outperforming amidst intensifying concerns around global growth. Exhibiting a defensive bias, investors showed a stylistic preference for ‘quality’, whilst sectors such as Telecommunications, Healthcare, Real Estate and Utilities outperformed Energy, Materials and Information Technology.

US equities outperformed as the Democrat midterm victory in the House failed to surprise and the Federal Reserve (Fed) hinted that rates are close to neutral. UK equities underperformed as the ongoing uncertainty around Brexit intensified ahead of the upcoming parliamentary exit deal vote. European equities also retreated with modest quarterly GDP figures and ongoing uncertainty over the Italian budget souring investor confidence.

Chinese equities rebounded from five consecutive monthly losses as hope of progress on trade disputes at the G20 summit buoyed Emerging Markets more broadly, also supported by dovish Fed commentary regarding future US rate hikes. Oil prices dipped significantly amidst increased Saudi production and waning demand as the global economy shows signs of a slowdown.

The Antipodes Global Fund, Antipodes Global Fund – Long and Antipodes Asia Fund underperformed their respective benchmarks. Major contributors to performance included Telecommunications Incumbent, Healthcare and Software Incumbent exposures while our Natural Gas, Global Cyclical, Low Cost Oil and Consumer Incumbent exposures detracted.

For further information, please refer to our Monthly Fund updates.