Monthly Updates

Antipodes Global Fund (PIE)

MONTHLY REPORT | 31 October 2022

Investors should refer to the quarterly Fund Update which is on and

Key Takeaways

  • Economic data remained resilient throughout October, despite the historic pace of tightening of financial conditions observed so far in 2022.
  • Markets proved similarly resilient, returning positive absolute performance whereby value outperformed growth, in a continuation of the theme observed for much of the year-to-date.
  • The Antipodes Global Fund underperformed the benchmark over the month (after fees), however remains ahead over the calendar-year-to-date.


Global equities were higher in October (+3.2%) with Energy, Industrials and Healthcare outperforming whilst Communication Services, Consumer Discretionary and Utilities underperformed. US equities were the strongest performing market over the month (+5.1%), 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 (+4.3%) 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 (-5.4%). Chinese equities were weak (-15.8%) 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 (+0.3%) 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.

Key contributors included:

  • Oracle and SAP within the Internet/Software – DM Cluster, with both companies reporting quarterly earnings exceeding analyst expectations. SAP revenues in both cloud and non-cloud sectors exceeded estimates, with the company also confirming strong guidance on its cloud business, highlighted by a sizeable order backlog. Oracle confirmed overall revenue was up 18% year-on-year, led by the company’s cloud infrastructure revenue.
  • Healthcare cluster, notably Merck, which reported third-quarter results highlighting earnings-per-share and quarterly sales above analyst estimates, led by key oncology drug Keytruda where sales grew 20% year-on-year.
  • Industrials cluster, notably Northrop Grumman which surged higher despite missing analyst estimates in its third-quarter earnings. The company continues to see a strong demand environment for its products despite the defence industry experiencing heightened macroeconomic volatility.

Key detractors included:

  • Consumer Cyclical – Asia EM cluster, including Longfor Group and Country Garden Services Holdings as Chinese property related exposures continued to feel the effects from the downturn in the Chinese property market, with heightened concerns around liquidity and access to capital.
  • 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.
  • Meta Platforms within the Internet/Software – DM cluster, as the company reported a material decline in profits during the third quarter as advertisers reined in spending amid the global economic downturn. In addition, the company’s metaverse division, Reality Labs, reported a US$3.7bn loss over the quarter, with Meta anticipating these losses would grow significantly year-over-year in 2023.
  • Tail Risk cluster (short) detracted over the month as global markets broadly pushed higher.

* 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 NZD and net of applicable fees, costs and taxes. All p.a. returns are annualised.

Total exposure1 (%)

wdt_ID Composition Weight

1 All exposures contained within this report are with respect to the weight

Top 10 equity longs (%)

Fund Facts

wdt_ID Characteristics -

Sector exposure2 (%)

2Antipodes classification

Asset allocation3

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

Currency exposure3,4 (%)

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

Regional exposure 2,3,4 (%)

Market cap exposure3 (%)

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 may use FDIs typically for netting and hedging arrangements. FDIs cannot be used to leverage portfolio exposure

• Total exposure limited to 100% of Net Asset Value to remain net long

Fund overview
wdt_ID Unit Class Units NZD (Accumulating)

5 As a percentage of the net asset value of the Fund per annum (Fee rate includes GST). 6 The Performance Fee will be calculated daily in respect of a semi-annual performance period ending on 30 June and 31 December each year (or the immediately preceding Business Day if not a Business Day) (each a Performance Period). The performance fee above has a ‘high water mark’. This means it is calculated on a cumulative basis relative to the Benchmark Index so that any performance under the Benchmark Index in a particular period must first be recovered in following periods before performance fees are paid. 7 When you enter or leave a Fund, any buy or sell spreads applicable at that time will be a cost to you. The buy spread is added to the Unit price on entry to the Fund, and the sell spread is deducted from the Unit price on exit from the Fund. The buy/sell spreads belong to the Fund and the purpose of buy/sell spreads is to make sure that any transaction costs incurred as a result of an investor entering or leaving the Fund are borne by that investor, and not by other investors in the Fund. There is no GST charged on buy/sell spreads.
For further information regarding the Antipodes Global Fund (PIE), please refer to the Product Disclosure Statement (PDS). The PDS is available from or

Further information

1300 010 311


Antipodes Global Fund (PIE) (the “Fund”)

This Fact Sheet is provided by Antipodes Partners Limited (‘Antipodes’) (ABN 29 602 042 035, AFSL 481580) in good faith and is designed as a summary to accompany the Product Disclosure Statement for the Antipodes Investment Funds (Funds). The Product Disclosure Statement is available from Antipodes, or the issuer Implemented Investment Solutions Limited (IIS) on, and on The information contained in this Fact Sheet is not an offer of units in the Funds or a proposal or an invitation to make an offer to sell, or a recommendation to subscribe for or purchase, any units in the Funds. If you are making an investment directly then you will be required to complete the application form, which can be obtained from the Manager, IIS. The information and any opinions in this Fact Sheet are based on sources that Antipodes believes are reliable and accurate. Antipodes, its directors, officers and employees make no representations or warranties of any kind as to the accuracy or completeness of the information contained in this fact sheet and disclaim liability for any loss, damage, cost or expense that may arise from any reliance on the information or any opinions, conclusions or recommendations contained in it, whether that loss or damage is caused by any fault or negligence on the part of Antipodes, or otherwise, except for any statutory liability which cannot be excluded. All opinions reflect Antipodes’ judgment on the date of this Fact Sheet and are subject to change without notice. This disclaimer extends to IIS, and any entity that may distribute this publication. The information in this Report/Presentation is not intended to be financial advice for the purposes of the Financial Advisers Act 2008 or the Financial Markets Conduct Act 2013. In particular, in preparing this document, Antipodes did not take into account the investment objectives, financial situation and particular needs of any particular person. Professional investment advice from an appropriately qualified adviser should be taken before making any investment. Past performance is not necessarily indicative of future performance, unit prices may go down as well as up and an investor in the fund may not recover the full amount the capital that they invest. No part of this document may be reproduced without the permission of Antipodes or IIS. IIS is the issuer and manager of the Funds. Antipodes is in the investment manager of the Funds. 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.