It is difficult to draw many broad conclusions from reporting season due to the wide dispersion and out of date market analyst expectations, the rapid development of the economic landscape and the government support measures, but it is possible to categorise companies into three broad buckets:
1)Companies that are benefitting from rent relief, government stimulus and a short term change of consumer behavior and spending habits (we have been selling exposures to these companies);
2)Companies that are experiencing increased but likely more sustained revenue growth (we are continuing to build positions in these companies);
3) Companies that have recorded lower profit growth now through being conservative in their provisioning but should benefit in future periods (we are maintaining sizeable positions in these companies).
Full report attached
The tragic human rights situation currently unfolding in Myanmar holds particular significance to our Sustainability Analyst Georgina. Please read Georgie’s poignant thoughts on her visit to the camp, our expectations on our portfolio companies in regard to Myanmar, and why Ethical Partners has recently signed on to the Investor Statement on Human Rights and Business Activities in Myanmar.
As members of the Investor Group on Climate Change, Ethical Partners Funds Management strongly endorses its new roadmap released today in conjunction with the CDP and the Principles for Responsible Investment. It is entitled: "Confusion to clarity: A plan for mandatory TCFD-aligned disclosure in Australia".
During May 2021 the Fund returned 1.56% versus the S&P/ASX 300 Accumulation Index of 2.31%, underperforming the market by -0.75%. An underweight position in IT and an overweight position in Westpac contributed to relative performance while an overweight position in Consumer Staples and an underweight position in CBA detracted from relative performance.