Monthly Updates

Antipodes Global Shares (Quoted Managed Fund)

MONTHLY REPORT | 31 October 2022

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 Shares (Quoted Managed Fund) underperformed the benchmark over the month (after fees).


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.

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.

* 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.

Top 10 equity longs (%)

Name Country Weight
Merck United States 3.8
Sanofi France 3.4
Oracle United States 3.3
SAP Germany 3.0
Siemens Germany 3.0
TotalEnergies France 3.0
Northrop Grumman United States 3.0
Frontier Communications United States 2.8
Tesco United Kingdom 2.3
Flutter Entertainment United Kingdom 2.1

INAV tickers

wdt_ID - Unit Price iNAV

Fund Facts

Characteristics - wdt_ID

Sector exposure1 (%)

1 Antipodes classification

Asset allocation3

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

Currency exposure2,3 (%)

2Where possible, regions, countries and currencies classified on a look through basis

Regional exposure1,2,3 (%)

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 (before fees) over the investment cycle (typically 3-5 years)

• Global diversification – Access to 30+ global companies via a single trade

• Alignment of interests – proportion of each team member’s remuneration is invested into Antipodes funds. Antipodes also has a significant investment alongside unitholders

Simple access – being exchange traded, investors can buy or sell AGX1 like a regular security during the trading day

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 Global Shares (Quoted Managed Fund) (ARSN 625 560 269) (‘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 Shares (Quoted Managed 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 Rating is 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

Morningstar Disclaimer: © 2022 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘classservice’ have been prepared by Morningstar Australasia Pty Ltd (‘Morningstar’) (ABN 95 090 665 544, AFSL 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to Morningstar Financial Services Guide (FSG) for more information at You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Morningstar publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance is for illustrative purposes only and is not indicative of future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 (“ASXO”).

Antipodes Global Shares (Quoted Managed Fund) received a Morningstar Analyst RatingTM of ‘Bronze’ on 25 April 2022.