This report covers C WorldWide‘s Q4 2022 quarterly update.
Last quarter, C WorldWide’s strategy’s return was on par with the MSCI AC World Index, which both fell 0.3% (AUD). The US Fed hiked rates by 75 bps twice in the third quarter. In combination with US money supply falling at an annualized rate of 1.6% over the last three months, the steepest drop in 84 years, this is affecting asset price volatility.
This quarter, the strategy returned 5.3% whereas the MSCI AC World Index returned 4.1%. 2022 was one of the most challenging years in a decade for investors, with large declines in both the equity and bond markets. Over time the share prices follow earnings. The key is to find companies that can reinvest in their businesses at a high rate of return with a long runway to do so. As the average company is now expected to grow earnings in the mid-single digits, C WorldWide’s companies look well positioned to outgrow again and compound higher than an average company.
Report Highlights
- Fourth Quarter 2022 Outlook
- Silver Linings – Bo Knudsen, Managing Director and Portfolio Manager
- Investigating the nearshoring theme in Mexico – Aman Kalsi & Abhinav Jagat Rathee, Portfolio Managers
- China – To Invest or Not Invest – Aman Kalsi, Mogens Akselsen & Allan Christensen, Portfolio Managers
- C WorldWide Global Equities ex. Tobacco – Fourth Quarter Commentary
This document has been prepared by C WorldWide Asset Management Fondsmæglerselskab A/S (“C WorldWide”). C WorldWide is regulated by the Danish Financial Services Authority under Danish laws, which differ from Australian laws. In Australia, C WorldWide is exempt from the requirement to hold an Australian Financial Services Licence by operation of ASIC relief. C WorldWide is permitted to provide financial product advice in certain classes of financial products to wholesale clients. This document is distributed in Australia by BNP PARIBAS ASSET MANAGEMENT Australia Limited ABN 78 008 576 449, AFSL 223418 (“BNPP AMAU”). It is produced for general information only for the exclusive use of wholesale investors and does not constitute financial product advice, nor an offer to issue or recommendation to acquire any financial product. You should seek your own professional advice in relation to any financial product referred to.
New Zealand financial services licensing and registration requirements do not apply to BNPP AMAU and CWW as they do not provide financial services to retail clients in New Zealand and do not have a place of business in New Zealand.
Any opinions included in this document constitute the judgment of the document’s author at the time specified and may be subject to change without notice. Such opinions are not to be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient and are not intended to provide the sole basis of evaluation of any investment. The contents of this document are based upon sources of information believed to be reliable, but no warranty or declaration, either explicit or implicit, is given as to their accuracy or completeness. BNPP AMAU and C WorldWide, to the extent permitted by law, disclaim all responsibility and liability for any omission, error, or inaccuracy in the information or any action taken in reliance on the information and also for any inaccuracy in the information contained in the document which has been provided by or sourced from third parties. Past performance is not necessarily indicative of future performance. This document may not be copied, distributed or passed on, directly or indirectly, to any person without the express consent of BNPP AMAU and C WorldWide.
