Monthly Updates

Antipodes Global Fund

ARSN 087 719 515 APIR IOF0045AU
MONTHLY REPORT | 31 December 2021


Global equities rebounded in December (+1.4%) with Utilities, Consumer Staples, Health Care and Materials outperforming, whilst Consumer Discretionary, Communication Services and Information Technology underperformed. US equities were up (+1.3%) with Omicron restriction fears easing, strong macro data and high inflation data, whilst the Fed continued it’s more hawkish messaging. European equities outperformed (+4.0%) also with Omicron restriction fears easing and high inflation data, the ECB announced policy tightening with reduced QE and balance sheet reduction while remaining accommodative.

Asian equities underperformed (-1.0%) led by weak Chinese equities (-4.0%) with ongoing headlines concerning ADR listings and regulation, while the People’s Bank of China commenced policy easing. Japan underperformed (-0.6%) with higher inflation and unemployment rising slightly.

Elsewhere, Brent Crude (+12.9% in USD) rebounded, while Gold (+3.1%) rose as a safe haven and the US Dollar (DXY -0.3%) was stable.

Key contributors included:

  • Consumer Cyclical – DM, notably UniCredit and Flutter Entertainment. UniCredit pushed higher over the month upon management committing to €16b of payouts from FY22-FY25, which was announced in addition to the €652m buyback that commenced in mid-December. Flutter Entertainment rebounded from a poor November for gaming stocks, announcing the purchase of Italian gaming operator, Sisal, for £1.62b late in the month. The acquisition aligns with the company’s desire to increase market share in Italy and boost Flutter’s presence in regulated markets.
  • Mediatek in the Hardware cluster continued to benefit from its Dimensity 9000 chip, which was officially released in mid-December with the announcement that smartphone manufacturers Oppo and Xiaomi will begin to equip their new generation handsets with the chip. In addition, Mediatek also announced their new Wi-Fi and smart TV chipsets, which were positively received.
  • Industrials cluster, including both Siemens and Airbus. Siemens continued to benefit from market reappraisal of the business, supported by strong performance of listed subsidiary, Healthineers. Airbus reacted strongly on the announcement it had received a major order for 100 A320neo family aircraft from Air France-KLM, with purchase rights on 60 more aircraft, in addition to four Airbus A350F Freighters. The order supplemented a strong month for Airbus which also received commitments from Singapore Airlines to replace its freighter fleet and Qantas in replacing Boeing as the preferred aircraft for the long-term renewal of its domestic narrow-body fleet.

Key detractors included:

  • Infrastructure/Property – DM, notably Frontier Communications and Électricité de France (EDF). Frontier was impacted by reports of slower than expected broadband growth by cable companies which impacted market consensus for Frontier’s subscriber growth prospects. EDF was impacted by the shutdown of four nuclear reactors during the month after inspections discovered faults as part of routine maintenance to the reactors at the Civeaux plant, which also caused a precautionary shutdown of the Chooz plant in the east of France, which uses the same technology. EDF stated they believe the shutdowns would result in a loss of 1TWh or output by the end of 2021, lowering profit guidance.
  •, within the Internet/Software – Asia/EM cluster amid news in late December that Tencent has filed to reduce its stake in to approximately 2.3%, down from 17% and will no longer be the largest shareholder.
  •, within the Consumer Cyclical – Asia/EM cluster detracted after reporting Q3 revenue was down 9% from the previous quarter after the re-emergence of COVID-19 in China, despite also reporting international flight reservations increased 40% from the previous quarter.

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 ABN 29 082 494 362 AFSL 238371 (‘PFSL’) 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 is available at Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

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.

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) 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.

The Lonsec Ratings (assigned March 2021) presented in this document are published by Lonsec Research presented in this document are published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Ratings are 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: