The Fund delivered a positive return but trailed its reference indicator in May, though it did maintain a clear lead year-to-date.
Healthcare stocks were the main drag on performance as a number of our top holdings (Baxter, Lonza) showed weakness.
Nvidia was the top contributor as its quarterly results surpassed investors’ expectations.
Performances in the technology sector were mixed, with Samsung suffering from stiff competition with SK Hynix.
Since Kristofer Barrett took the reins, the Fund has been transformed with the addition of some 30 stocks and removal of a dozen others.
Although he is keeping the emphasis on profitable trends in artificial intelligence and healthcare, he has diversified the portfolio all along the value chain.
We have reduced investments in momentum stocks with high price multiples, and this has decreased the portfolio’s average valuation.
The US company Applied Materials was among the many names added to the portfolio. It is a major supplier to TSMC and Samsung.
North America | 59.0 % |
Europe | 19.3 % |
Asia | 18.2 % |
Latin America | 1.8 % |
Asia-Pacific | 1.7 % |
Total % Equities | 100.0 % |
Market environment
The United States and Europe are starting to diverge at macroeconomic and monetary policy levels.
Although the US economy remains firm, signs of cooling were observed in May.
In Europe, PMIs published during the month confirmed an improvement in economic activity.
The downward trend for US interest rates helped growth stocks.
Nvidia continued to benefit from investors’ excitement about artificial intelligence after publishing its results.