Monthly Updates

Antipodes Emerging Markets (Managed Fund)

ARSN 096 451 393 APIR IOF0203AU
MONTHLY REPORT | 31 October 2022

Key Takeaways

  • Emerging market equities underperformed broader global equities over the month, led largely by weaker performance in China.
  • Markets reacted poorly in China to the formation of a Politburo consisting solely of President Xi’s supporters, which was not unexpected given Xi’s behaviour in his first two terms.
  • The Antipodes Emerging Markets (Managed Fund) underperformed the benchmark over the month (after fees) and is behind over the calendar-year-to-date.


Global equities were higher in October (+6.6%) with Energy, Industrials and Healthcare outperforming whilst Communication Services, Consumer Discretionary and Utilities underperformed. US equities were the strongest performing market over the month (+8.5%), as hopes for a Fed pivot grew as economic data showed material slowing even whilst the labour market remained strong and CPI data remained elevated.

European equities also outperformed (+7.8%) as governments announced more detailed fiscal support to address energy concerns and natural gas stockpiles continued to grow amid milder weather. Similarly, policy pivot expectations grew in light of heightened market expectations for a likely recession in the region.

Asian equities underperformed broader global markets over the month (-2.3%). Chinese equities were weak (-13.1%) in light of continued COVID-zero lockdowns and the negativity around the 20th Party Congress announcements and formation of President Xi’s Politburo. This was exacerbated by poor economic data and heightened concerns around the property sector, which furthered negative sentiment. Japanese equities were positive (+3.5%) as the Bank of Japan continued their loose monetary policy amid low inflation, despite the Ministry of Finance once again intervening to support the Yen.

Elsewhere, Brent Crude (+11.1% in USD) was strong with OPEC+ output cuts, Gold (-1.6%) was down, whilst the US Dollar (-0.5%) was down marginally. Elsewhere, Brent Crude (-8.8% in USD) was weak, Gold (-3.0%) was down, whilst the US Dollar (+3.1%) was up.

Key contributors included:

  • Oil/Natural Gas cluster, including Petro Rio SA and Reliance Industries. Petro Rio SA continued to benefit from rising energy prices and provided a solid investor update on their project development pipeline. Indian conglomerate Reliance Industries, similarly, benefitted from strong energy prices in addition to a broader uptick in Indian equities over the month.
  • Hardware cluster, notably Samsung Electronics. Despite reporting a drop in quarterly earnings, the share price surged as investors looked forward to 2023, with expected improving inventory positions and reduced industry CAPEX, signalling the potential for a cyclical recovery.

Key detractors included:

  • Consumer Cyclical – Asia EM cluster, including Longfor Group and Country Garden Services Holdings as Chinese property related exposures continued to be impacted by the downturn in the Chinese property market, with heightened concerns around liquidity and access to capital.
  • Similarly, real estate platform KE Holdings within the Internet/Software cluster similarly was impacted by weaker sentiment towards the Chinese property sector.
  • Internet/Software – Asia/EM cluster, including and Alibaba, which were impacted by negative sentiment with the expectation economic activity in China will remain lacklustre and consumption will remain depressed in the short-term following President Xi’s Politburo formation. Subsequently, both companies were impacted by significant foreign investor outflows.

* Illustrative only and not a recommendation to buy or sell any particular security

Net performance (%)

Past performance is not a reliable indicator of future performance. Returns are quoted in AUD and net of applicable fees, costs and taxes. All p.a. returns are annualised.

Performance & risk summary 1

1 All metrics are based on gross of fee returns in AUD terms. The upside/downside capture ratio is the percentage of benchmark performance captured by the fund during months that the benchmark is up/down. Standard deviation is a measure of risk with a smaller figure indicating lower return volatility. The Sharpe ratio measures returns on a risk adjusted basis with a figure > 1 indicating a higher return than the benchmark for the respective levels of return volatility.

Performance contribution2 (%)

Asia 31 Oct 2022 05 Jan 2023 POSITION Long -6.3%
Asia 31 Oct 2022 05 Jan 2023 POSITION Currency -0.1%

2 Based on gross returns in AUD

Top & bottom sector contribution2,3 (%)

3 Antipodes classification

Fund Facts

wdt_ID Characteristics -

Antipodes Asia Fund

Asset allocation4

4 Call (put) options represented as the current option value (delta adjusted exposure)

Sector exposure4,5 (%)

5 Antipodes classification

Top 10 equity longs4 (%)

Name Country Weight
Taiwan Semiconductor Taiwan 5.4
PT Bank Mandiri (Persero) Indonesia 4.8
Samsung Electronics Korea 4.5
Fomento Economico Mexicano Mexico 4.4
PT Astra International Indonesia 4.4
Reliance Industries India 4.3
Teck Resources Limited Canada 3.8
ICICI Bank India 3.8 China/HK 3.4
Petro Rio Brazil 3.2

Currency exposure4,6 (%)

6 Where possible, regions, countries and currencies classified on a look through basis

Regional exposure4,5,6 (%)

Market cap exposure4 (%)

Band Long Short Net
Mega (>$100b) 16.6
Large (>$25b <$100b) 29.0
Medium (>$5b <$25b) 29.9
Small (<$5b) 11.7
Investment Manager

• Global pragmatic value manager, long only and long-short
• Structured to reinforce alignment between investors and the investment team
• We attempt to take advantage of the market’s tendency for irrational extrapolation, identify investments that offer a high margin of safety and build portfolios with a capital preservation focus

Fund features


  • Objective to achieve absolute returns in excess of the benchmark over the investment cycle (typically 3-5 years)
  • The Fund invests in companies that are exposed to emerging markets or listed on emerging market stock exchanges.
  • In the absence of finding individual securities that meet minimum risk-return criteria, cash may be held to maximum 25%
  • Flexibility to hedge for risk management purposes:
    • Currency exposure of the underlying stock position (net short currency position not permitted)
    • Equity market exposure via exchange traded derivatives (limited to 10% of NAV)
    • Leverage not permitted
  • This product is likely to be appropriate for a consumer seeking capital growth to be used as a small allocation within a portfolio where the consumer has a minimum investment timeframe of 5 years, and a high risk/return profile.
Fund Ratings

Further information

1300 010 311

Australia Head Office

Antipodes Partners Limited
Level 35, 60 Margaret St
Sydney NSW 2000

UK Office

Antipodes Partners Limited
6th Floor, Nova North
11 Bressenden Place
London SW1E 5BY UK


This communication is prepared by Antipodes Partners Limited (‘Antipodes’) (ABN 29 602 042 035, AFSL 481580) as the investment manager of the Antipodes Emerging Markets (Managed Fund) (ARSN 096 451 393) (‘the Fund’). Pinnacle Fund Services Limited (‘PFSL’) (ABN 29 082 494 362, AFSL 238371) is the product issuer of the Fund. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) (ABN 22 100 325 184). The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the Fund are available via below links. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

Link to Product Disclosure Statement

Link to Target Market Determination

For historic TMD’s please contact Pinnacle client service Phone 1300 010 311 or Email

This communication is for general information only. It is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. It has been prepared without taking account of any person’s objectives, financial situation or needs. Any persons relying on this information should obtain professional advice before doing so. Past performance is for illustrative purposes only and is not indicative of future performance. Options exposure represents the market downside. For put options (typically used to limit potential downside) delta-adjusted exposure is used and for call options (typically used to capture potential upside) exposure is calculated using the current option value. Unless otherwise specified, all amounts are in Australian Dollars (AUD).

Whilst Antipodes, PFSL and Pinnacle believe the information contained in this communication is reliable, no warranty is given as to its accuracy, reliability or completeness and persons relying on this information do so at their own risk. Subject to any liability which cannot be excluded under the relevant laws, Antipodes, PFSL and Pinnacle disclaim all liability to any person relying on the information contained in this communication in respect of any loss or damage (including consequential loss or damage), however caused, which may be suffered or arise directly or indirectly in respect of such information. This disclaimer extends to any entity that may distribute this communication.

Any opinions and forecasts reflect the judgment and assumptions of Antipodes and its representatives on the basis of information available as at the date of publication and may later change without notice. Any projections contained in this presentation are estimates only and may not be realised in the future.

Unauthorised use, copying, distribution, replication, posting, transmitting, publication, display, or reproduction in whole or in part of the information contained in this communication is prohibited without obtaining prior written permission from Antipodes. Pinnacle and its associates may have interests in financial products and may receive fees from companies referred to during this communication.

Zenith Disclaimer: The Zenith Investment Partners (‘Zenith’) (ABN 27 103 132 672, AFSL 226872) rating (assigned Antipodes Asia Fund – November 2021) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.

Lonsec Disclaimer: The Lonsec Rating (assigned May 2022) presented in this document is published by Lonsec Research Pty Ltd (‘Lonsec’) (ABN 11 151 658 561, AFSL 421445). The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial products. Past performance information is for illustrative purposes only and is not indicative of future performance. They are not a recommendation to purchase, sell or hold Antipodes products, and you should seek independent financial advice before investing in these products. The Ratings are subject to change without notice and Lonsec assumes no obligation to update the relevant documents following publication. Lonsec receives a fee from the Fund Manager for researching the products using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at