Monthly Update February 2018
Performance*
1 Month
YTD
12 Month
3 Year p.a.
5 Year p.a.
Since Launch**
GAMAX Junior Fund
0.79%
0.79%
11.30%
6.89%
11.67%
7.44%
Benchmark***
1.14%
1.14%
8.45%
8.16%
13.62%
6.30%
Net Excess Return
-0.35%
-0.35%
+2.85%
-1.28%
-1.95%
+1.15%
*Performance Figures Net of Fees to 30.01.18. Class A. All figures have been rounded to two decimal places. **Since DJE managed the Fund (Oct 2007) ***Benchmark is MSCI WORLD INDEX Total Return Net in €. Source: GAMAX Management AG.
Market Overview and Performance Analysis January was a good month for global equity markets, which enjoyed a positive start to the year. Indices in Europe were held back slightly due to the continued strength in the euro, which reached an exchange rate of €1.25 versus the US dollar. Export oriented indices/countries, like the German DAX, were negatively impacted by the euro strength. On the other hand, US markets started the year more positively, supported by the weak US dollar. The potential for higher inflation going forward might lead to a faster recovery in interest rates compared to expectations. The implications of the increasing level of interest rates are just at the beginning of their impact and the GAMAX Junior fund is being adjusted towards those expectations, by reducing positions in interest rate sensitive stocks. These are mostly companies with only moderate growth but high dividend-yields, which makes them vulnerable to increasingly competitive yields in bonds. The GAMAX Junior fund gained +0.79% net of fees in January, while the benchmark gained 1.14%. Positive performance was mostly attributable to the returns from technology and internet companies like Amazon, Alibaba, PayPal, and Match Group (up +24.06%, +18.48%, and +11.59% respectively). On the other hand the stocks from defensive sectors, such as telecom and foods, Vodafone and Nestle for example (down -4.43% and -4.03% respectively) held performance back to some extent. Ebay reported very good results for Q4 and gave guidance for 2018 above consensus. The free cashflow yield is still very attractive at levels above 5% and the company plans the continuation of its very active buyback policy in 2018. The company expects to grow revenue in the double digits, supported by more favourable exchange rates, especially versus the euro, which enhances growth expectations by 3%. StubHub, the ticket marketplace, recovered from the weak growth rates seen in Q3. The growing “classifieds” section of the business is helping to increase conversion according to management, especially in the German market. The number of active users grew by 5% Year on Year to currently sit at 170 million (up 2 million versus Q3). American Express reported solid results for Q4 and guidance for 2018 as well, profiting from the lower tax rate and good business climate in the US, as well as low unemployment rate, which leads to a low rate of non-performing loans outstanding. Notably, the initiative to increase the number of customers with loans, to further increase the income achieved from the corresponding interest, was successful. Portfolio Activity
Moritz Rehmann Lead Portfolio Manager
Dr. Jan Ehrhardt Portfolio Manager
Fund Objectives The GAMAX Junior Fund invests in shares of successful companies whose products, services or brands target the younger generation. By doing this, the Fund aims to benefit from global demographic growth trends and higher disposable incomes. The Fund is benchmarked against the MSCI World Index return in euro. Country allocation as a percentage of the Fund
Other Countries 7.35%
Cash 0.66%
United Kingdom China Germany 2.71% 6.17% France 8.91% Hong Kong 4.46% 4.48% Japan 4.51%
Sweden 4.41% United States 53.28%
The investment quota into equity was slightly higher at a level of around 99%, while the generally conservative approach was continued. Increases in positions like Match Group, Wirecard and Priceline were taken due to good sales momentum. On the other hand, we reduced positions in yield sensitive companies like ComHem, Pepsi and China Mobile.
Switzerland 6.43%
Asset Allocation Breakdown
Portfolio Strategy and Outlook
Funds Bonds Cash 0.00% 0.00% 0.66%
The general selection towards the country allocation is not expected to be changed, since most of the invested stocks offer products on an international level, where the state of incorporation is of lesser importance. The selection process will further be maintained on a very thorough research process on a single company level. The continued low interest rate environment should lead to a continued supportive environment for stock markets. Wage inflation should improve in 2018 with the economy running as well as it is, with a very healthy job market, especially in northern Europe, which should lead to a constructive environment for consumer companies. Stocks 99.34%
For further information please contact: Sarah Thanisch | Gamax Management AG | +352 269 764 82 |
[email protected] www.gamaxfunds.com
Monthly Update February 2018
INTENDED RECIPIENTS OF PUBLICATION OR MEDIA
TOP 10 HOLDINGS* Name
Weight in%
Country
ALPHABET INC -A-
4.53%
US
AMAZON COM INC
4.09%
US
NIKE INC B
3.63%
US
AIA GROUP LTD
3.00%
HK
JOHNSON & JOHNSON
2.28%
US
WIRECARD AG/APRES RED.CAP
2.27%
DE
E TRADE FINANCIAL CORP
2.18%
US
TRAVELERS COMPANIES INC *OPR*
2.17%
US
APPLE INC
2.09%
US
COM HEM HOLDING AB
2.07%
HK
TOP 10 CONTRIBUTORS (STOCKS) TO MONTHLY PERFORMANCE** AMAZON.COM INC
24.06%
US
ALIBABA GROUP HOLDING-SP ADR
18.48%
CN
ACTIVISION BLIZZARD INC
17.07%
US
NINTENDO CO.LTD
17.07%
JP
YUM CHINA HOLDINGS INC
15.92%
US
PAYPAL HOLDINGS INC
15.89%
US
TENCENT HOLDINGS LTD
13.45%
CN
PVH CORP
13.02%
US
ALPHABET INC-CL A
12.23%
US
MATCH GROUP INC
11.59%
US
TOP 10 DETRACTORS (STOCKS) FROM MONTHLY PERFORMANCE** L BRANDS INC
-16.82%
US
ETSY INC
-8.26%
US
SNAP INC
-7.46%
US
NETEASE INC-ADR
-7.22%
CN
SAMSONITE INTERNATIONAL SA
-6.41%
US
VODAFONE GROUP PLC
-4.43%
GB
NESTLE SA-REG
-4.03%
CH
ASSOCIATED BRITISH FOODS PLC
-3.09%
GB
GAP INC/THE
-2.41%
US
NORDEA BANK AB
-2.07%
SE
SMALL/MID/LARGECAPS IN %** Smallcap
3.66%
Midcap
14.69%
Largecap
78.46%
*Source: Mediolanum Asset Management Ltd. **Source: DJE Kapital AG.
The information contained on this publication or media does not constitute an offer for products or services and should not be construed as an offer to sell or a solicitation of an offer to buy to any persons who are prohibited from receiving such information under the laws applicable to their place of citizenship, domicile or residence. Save as otherwise disclosed, none of the information, whether in part or full, is permitted to be copied, reproduced or redistributed in any form nor should it be regarded as an offer or a solicitation of an offer for investment in countries outside of Austria, Germany, Italy, Luxembourg, Spain and Switzerland. The content of this publication or media was issued by or on behalf of GAMAX Management AG (’GMAG) for the sole attention of investors who or which are domiciled in jurisdictions where such distribution or availability would not be contrary to local laws or regulations. IMPORTANT INFORMATION The GAMAX FCP (fonds commun de placement); or “GAMAX Funds” is a Luxembourg domiciled open-ended UCITS umbrella FCP authorized by the Commission de Surveillance du Sector Financier (CSSF). As an umbrella fund, GAMAX Funds is composed of three sub-funds: GAMAX Funds - Maxi-Fonds Asien International; GAMAX Funds – Maxi-Bond and GAMAX Funds – Junior (hereinafter “GAMAX Funds”). The Fund Manager is GAMAX Management AG (‘GMAG’) which is authorised by the CSSF in Luxembourg as a UCITS Management Company pursuant to the Law of 17 December 2010 relating to undertakings for collective investment. Its registered address is at 11/13, Boulevard de la Foire, L-1528 Luxembourg. GMAG has appointed Mediolanum Asset Management Ltd. (“MAML”) as Investment Manager of the Fund. MAML is authorised by the Central Bank of Ireland as an Investment Firm under the European Communities (Markets in Financial Instruments) Regulations 2007. DJE Kapital AG (DJE) has been appointed as the portfolio manager of the GAMAX Junior and GAMAX Maxi-Fonds Asien International funds. DJE is authorised as an investment firm by BaFin in Germany. The entities, products or services referred to in any publication or media hosted on this website are not endorsed by the CSSF or other relevant EU competent authority. This update should be read in conjunction with the Prospectus and the relevant key investor information document of GAMAX Funds, together with the most recent annual report (or semi-annual report if published thereafter) and raise any questions you have on this documentation with your independent professional adviser (including in respect of investment suitability, accounting and tax issues). The Prospectus, KIIDs and additional fund documents are available for download in several languages in our website: www.gamaxfunds.com Future returns depend upon future economic conditions. Past performance may not be a reliable guide to future performance. Neither past experience nor the current situation are necessarily accurate guides to the future. Any performance data that may be made available in publications or media hosted on this website shall be net of fees, excluding subscription fees and sales commissions. The value of your investment may increase or decrease. The income you receive from your investment may increase or decrease and you may get back less than you invest. The investment may be affected by changes in currency exchange rates and / or market conditions; your investment return may increase or decrease as a result of currency fluctuations or market conditions. At any one time the net asset value of the Fund may have a high volatility due to its portfolio composition or the portfolio management techniques that may be used. Please refer to the past performance information and the risk and reward profile of the KIID, together with the Prospectus for further information. There can be no guarantee that specific securities or the securities of specific issuers that may be identified in this publication will be held by any of the Gamax funds at any given time.
For further information please contact: Sarah Thanisch | Gamax Management AG | +352 269 764 82 |
[email protected] www.gamaxfunds.com