Media ReleasesAltrinsic Global Equities Trust

View All Altrinsic Global Equities Trust News


Altrinsic Global Equities - Monthly Report July 2017

The Altrinsic Global Equities Trust (Net) was down 1.7% in July, lagging the 1.3% decline by the MSCI All Country World ex-Australia Index. The consumer staples, consumer discretionary, and telecommunications sectors contributed the most to return, while financials, information technology, and healthcare detracted from performance.
 · Outperformance in consumer staples was driven by Diageo after it reported strong FY 2016 results. Revenues rose 4.2% (among the best in the sector) with a corresponding increase in operating profits and cash flow.
 · In consumer discretionary, Adidas preannounced 2Q revenue and operating profit growth that was well ahead of expectations. Its brand and core franchises are being managed in a healthy way, supporting strong sustainable revenue growth and increased margins.
 · In telecommunications, Verizon reported significantly better 2Q subscriber additions versus expectations, and management is optimistic that pricing pressure will begin to subside in the second half of 2017.
 · Financials underperformed due to modest weakness in a few names. Low volatility weighed on Intercontinental Exchange, Chubb was down despite strong earnings results, and weakness in Mitsubishi UFJ was due to profitability concerns amid the low interest-rate environment.
 · Technology holding Thomson Reuters was down modestly, but the company continues on its path to improve margins and returns by “shrinking to grow.”
 · In healthcare, HealthSouth was hit by proposed regulatory changes for 2019 reimbursement. Currently, these changes are just "proposals," and more often than not, the final ruling will be less onerous.

For further information please download PDF attached:
Download this document