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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.

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