Monthly Updates

Antipodes Global Fund

ARSN 087 719 515 APIR IOF0045AU
MONTHLY REPORT | 31 May 2022

Key Takeaways

  • Heightened volatility continued through May as competing perspectives on future growth and inflation caused markets to whipsaw.
  • Value, more specifically defensive/low volatility value, continued to outperform growth, extending the 2022 trend.
  • Against this backdrop the Antipodes Global Fund outperformed the benchmark over the month and remains meaningfully ahead over the calendar-year-to-date.


Despite heightened volatility, global equities were relatively unchanged in May (-0.9%) with energy, utilities and financials outperforming and consumer staples, consumer discretionary and information technology underperforming.

US equities underperformed broader markets over the month (-1.2%). The Federal Open Market Committee (FOMC) hiked the federal funds rate by 50bps and further signalled more rate rises are to come, as the FOMC seeks to combat inflation. Whilst the FOMC speakers messaging became more mixed during the month, broader investor fears around economic growth persist.

European equities outperformed (-0.2%) over the month, with strong consumer confidence and high inflation data fuelling a more hawkish tone from the European Central Bank and likelihood of a hike in the near future. The Bank of England also lifted rates again in May.

Asian equities also broadly outperformed (-0.1%). Chinese equities outperformed broader Asian and global markets (+0.9%) with continued commentary highlighting assistance from the Government & People’s Bank of China (PBOC). Whilst several cities, including Shanghai, spent much of May in lockdown, there was notable easing in restrictions towards the end of the month. Japanese equities also outperformed over the month (+0.7%) while the Bank of Japan continued their diverging policy, with signs of stability in the Yen. Indian equities were weaker (-6.7%) with the Reserve Bank of India announcing an inter-meeting rate hike rising to combat rising inflation.

Elsewhere, Brent Crude (+12.4% in USD) was strong, Gold (-3.1%) was down, as was the US Dollar (-1.2%).

Key contributors included:

  • Consumer Cyclical – Developed Markets cluster. Italian bank, UniCredit confirmed a cash dividend of € 1.2bn on 2021 results and reconfirmed the proposed € 2.6bn buyback contingent on its core capital ratio remaining above 13%. Similarly, ING Groep announced the commencement of the next stage of the company’s share buyback programme, part of the € 1.25bn programme to return capital to our shareholders.
  • Oil & Natural Gas cluster, notably EQT Corp and Coterra Energy contributed to portfolio performance in May with both companies benefitting from the renewed surge in demand for US gas exports.
  • Hardware Cluster, notably Mediatek whereby short-term investor sentiment around chip demand stemming from weaker handset volumes in China was allayed by a reiteration from the company chairman that the company remains upbeat around expectation of 15% annual revenue growth over the next three years.

Key detractors included:

  • Internet/Software – Asia/EM, notably, despite reporting stronger than expected first quarter bottom line results, investor sentiment remained wary of lower goods consumption in China throughout April and into May. Similarly, there remains lingering overhang around Prosus and any potential divestment, as one of’s largest shareholders, following Tencent’s divestment in March.
  • Consumer Cyclical – Asia/EM, notably which was impacted by poorer investor sentiment from continued lockdowns in major Chinese cities throughout May, and a lower expected volume of domestic travellers for the annual Dragon Boat Festival holiday in early June, despite an easing of restrictions later in the month.

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 summary1

1All 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 fundduring 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 (%)

2Based on gross returns in AUD

Top & bottom sector contribution2,3 (%)

3Antipodes classification

Fund facts

Asset allocation4

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

Sector exposure4,5 (%)

5Antipodes classification

Top 10 equity longs4 (%)

Currency exposure4,6 (%)

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

Regional exposure4,5,6 (%)

Market cap exposure4 (%)

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)
  • In the absence of finding securities that meet minimum risk-return criteria, cash may be held
  • Equity shorts and currency positions used to take advantage of attractive risk-return opportunities, offset specific long portfolio risks and provide some protection from negative tail risk. Derivatives may also be used to amplify high conviction ideas
  • Typical net equity exposure of 50% to 100%; maximum gross exposure of 150% of NAV
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 Global Fund (ARSN 087 719 515) (‘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 Global 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 April 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