Oasis Crescent Global Equity Fund Report - 3rd Quarter 2020

Transcription

1. FUNDFACTS QUARTER OASIS CRESCENT GLOBAL EQUITY FUND Fund Manager Adam Ebrahim Min . Initial Investment GBP 5 000 Launch Date 30 November 2000 Min. Additional Investment GBP 1 000 Risk Profile Medium to High Fund Size GBP 177.3 million Total Expense Ratio 1.30% Average Global Shari’ah Peer Group Equity Peer Group* 3-2020 * Average Shari’ah Global Equity Peer Group is made up of an average of global equity funds that are Shari’ah compliant, valued daily in USD and obtained via a reputable data service provider. The Oasis Crescent Global Equity Fund (OCGEF) is a Shari’ah compliant equity fund that seeks to provide an ethical investment product. The Fund conforms to moral and cultural beliefs. Cumulative Returns Return Since Cumulative Returns YTD Inception Dec 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Sept 2000 2020 Cum Ann Oasis Crescent Global Equity Fund (4.7) Average Shari’ah Global Equity Peer Group (6.1) (17.8) (29.4) 13.1 1.7 (9.5) 21.6 14.4 25.5 14.6 7.8 (14.2) 20.9 11.1 (3.2) 6.7 24.7 14.6 3.3 25.7 (0.4) (4.5) 16.3 18.8 2.2 13.4 (15.3) 13.0 11.3 (7.9) 3.2 9.6 8.9 0.9 26.1 11.3 (5.8) 17.9 0.9 (0.6) 360.0 8.0 4.4 70.3 2.7 Performance (% returns) in GBP, Net of Fees, Gross of Non Permissible Income of the Oasis Crescent Global Equity Fund since inception to 30 September 2020 (Source: Oasis Research; Morningstar Direct: December 2000 - September 2020) Annualised Returns Return Since Inception % Growth 1 year % Growth 3 year % Growth 5 year % Growth 7 year % Growth 10 year Oasis Crescent Global Equity Fund 1.5 4.6 8.2 8.1 8.6 8.0 Average Shari’ah Global Equity Peer Group 5.0 6.7 11.8 9.2 7.4 2.7 Annualised Returns Annualised Performance (% returns) in GBP, Net of Fees, Gross of Non Permissible Income of the Oasis Crescent Global Equity Fund since inception to 30 September 2020 (Source: Oasis Research; Morningstar Direct: December 2000 - September 2020) Risk Analysis Investment Performance Return (%) 330 280 230 180 Oasis Crescent Global Equity Fund Average Shari’ah Global Equity Peer Group Oasis Fund vs. Benchmark 360.0 Overall 238 months Bear 102 months Bull 136 months 130 80 70.3 30 (20) (2.2) (3.3) 2.9 3.0 (Source: Oasis Research; Morning Star Direct: December 2000 - September 2020) 380 The major driver of performance is that this fund has captured only 67% of the downside in bear market conditions. Performance (% returns) in GBP, Net of Fees, Gross of Non Permissible Income of the Oasis Crescent Global Equity Fund since inception to 30 September 2020 Sharpe Sortino Oasis Crescent Global Equity Fund 0.43 0.61 Average Shari’ah Global Equity Peer Group 0.04 0.05 Calculated Net of Fees, Gross of Non Permissible Income, Since Inception to 30 September 2020 (Source: Oasis Research; Morningstar Direct; I-Net Bridge: December 2000 - September 2020) Performance is indicative only and for the period from inception to December 2016, is based on the Class A (USD) Shares (Dist). It has been converted to GBP on a monthly basis using the closing GBP/USD exchange rate as published by Bloomberg. A pound sterling class was launched on 15 May 2012, and from January 2017 performance is based on the Class E (GBP) Shares (Dist). Past performance is not indicative of future returns. GIPS compliant & verified
2. REGION OCGEF % DJIM% USA 60 68 ROW 17 14 Europe 13 9 UK 7 3 Japan Total SECTOR September 2020 3 6 100 100 Information Technology Communication Services Health Care Consumer Discretionary Materials Energy Consumer Staples Real Estate Financials Industrials Utilities Geographical split of the Oasis Crescent Global Equity Fund & Dow Jones Islamic Market World Index (30 September 2020) Total (Source: Oasis Research; Bloomberg: September 2020) OCGEF% 26 23 22 10 9 5 4 1 0 0 0 100 DJIM% 33 8 18 12 6 2 8 1 1 11 0 100 Sectoral split of the Oasis Crescent Global Equity Fund & Dow Jones Islamic Market World Index (30 September 2020) (Source: Oasis Research; Bloomberg: September 2020) Sectoral Analysis Geographical Analysis Fund Manager Comments Global economic activity rebounded strongly into 3Q 2020 following the worst contraction on record since the Great Depression in 2Q due to simultaneous COVID-19 related lockdowns over March and April. The composite global manufacturing and services PMI recovered over 3Q 2020 to an average level of 51.9 after just 36.8 in 2Q during which the historic low of 26.2 was recorded in April, at the height of the global lockdowns1. Global monetary policy continued to remain highly supportive, a combination of near zero policy rates and ongoing quantitative easing. Of note, the Federal Reserve moved to adopt an average inflation targeting framework at its September FOMC meeting, indicating that they would not raise interest rates until inflation had been higher than 2% “for some time”. At face value, it would seem that monetary policy tightening from the Federal Reserve is not likely over the next few years. Despite the explicit and committed support from monetary authorities, the sustainability of the global economic rebound is at risk from 2 sources: namely, signs of a rapidly developing 2nd wave of global COVID-19 infections, particularly in Europe, and the associated re-imposition of lockdown measures as well as premature withdrawal of fiscal stimulus. In the US, for example, the provisions of the CARES Act expired on 31st July against the backdrop of a still-historically weak labor market, placing millions of vulnerable families at risk. While Congress is debating a fresh fiscal stimulus package, and chances of a deal look good once the 3rd November Presidential election is out of the way, political jockeying ahead of the election has so far appeared to stymie the chances for a much needed near-term deal. The European Union meanwhile announced a fiscal stimulus package worth €750bn in late July to facilitate economic recovery in Europe where almost one-third of funds is allocated toward the ‘green’ economy2. From an investment, economic and social perspective, the outlook remains exceptionally challenging. Looking ahead, much will fundamentally depend on the evolution of the COVID-19 pandemic itself. Consecutive infection waves combined with re-imposition of lockdown measures will hamper a sustained economic recovery until a proven vaccine is available. Until such time, politicians and policymakers will continue to grapple with profound social and economic trade-offs between literally saving lives, on the one hand, while trying to protect economic livelihoods, on the other, especially of low- to middle-income workers in face-to-face services sectors such as retail and hospitality who have borne the brunt of job losses. The strong recovery that was seen in global equity markets during Q2 2020 was followed up by a solid performance in Q3 2020. The MSCI World Index increased by 8.0% with the Technology sector continuing to outperform increasing by 11.9% with the Energy sector lagging with a decline of 15.7%3. The S&P 500 increased by 8.9%, the Nikkei by 4.6% while the FTSE100 lagged and declined by 4.0%4. The MSCI Emerging Markets also recorded a continued recovery in Q3 2020 increasing by 9.7%5. The massive support from fiscal and monetary policy is fully offsetting the impact of revenue loss and decline in profits due to the contraction in demand and job losses as well as the impact of corporate margin compression. However, there remains a lot of uncertainty around how fast corporates will be able to recover their profits and this could lead to substantial market volatility. This current market volatility is ideal for active managers and the Oasis Crescent Global Equity Fund is well positioned due to its focus on the best quality companies with strong balance sheets and its high exposure to outperforming sectors including Technology, Telecommunications and Healthcare. We are also taking advantage of opportunities to pick additional high quality companies which are trading at significant discounts to their intrinsic value in this current environment. Our strong positioning is reflected in the portfolio quality and valuation characteristics of the Oasis Crescent Global Equity Fund relative to the DJIM Index. The Fund is invested in companies that are global leaders in their sectors, generate strong free cash flows and have superior management teams who are efficient capital allocators that pursue value enhancing opportunities. Oasis has successfully navigated turbulent economic cycles since its inception and with our strong focus on downside protection, we are confident that our portfolio is well positioned to provide attractive risk adjusted performance for our clients over the long-term. 1 - Bloomberg economic statistics, Oasis Research - 2 - IMF, Policy Responses to COVID-19. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 - 3 - Bloomberg, Oasis Research, Sep 2020 4 - Bloomberg, Oasis Research, Sep 2020 - 5 - Bloomberg, Oasis Research, Sep 2020 GIPS compliant & verified Contact us : Oasis Global Management Company (Ireland) Ltd. Authorised by the Central Bank of Ireland Registration Number: 362471 4th Floor, One Grand Parade, Dublin 6, Ireland Tel: +353 1 495 9800 Fax: +353 1 495 9888 UK Free Phone: 0808 238 7543 Email : info@oasiscrescent.com www.oasiscrescent.com Custodian : BNP Paribas Securities Dublin Branch Disclaimer : Undertakings for Collective Investments in Transferable Securities (UCITS) are generally medium to long term investments. Past performance is not indicative of future returns. Warning: The value of your investment may go down as well as up and past performance is not a reliable guide to future performance. Deductions for charges and expenses are not made uniformly throughout the life of the product, but are loaded disproportionately onto the early period. A schedule of fees and charges is available from Oasis Global Management Company (Ireland) Ltd. (“the Management Company”) on request. Where exit fees are applicable shares are redeemed at the net asset value and the exit fee is deducted and the balance is paid to the investor. UCITS are traded at ruling prices and forward pricing is used. Portfolios are valued at 08h00 daily using the previous day’s prices as at 22h00 GMT. All necessary documentation must be received before 14h00. Investments are made globally across a number of countries and currencies. Warning:This product may be affected by changes in currency exchange rates. Prices are calculated on a net asset value basis which is the total value of all assets in the Oasis Crescent Variable balanced Fund, a “Sub-Fund” of Oasis Crescent Global Investment Fund (Ireland) plc (the “Fund”), including any income accruals and less any permissible deductions from the Sub-Fund which may include but not be limited to auditors fees, bank charges, custodian fees, management fees and investment advisory fees. UCITS can engage in borrowing and scrip lending and may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. Warning: The income that an investor may get from an investment may go down as well as up. FP126 - 07/2020 The Management Company and the Fund are regulated by the Central Bank of Ireland and the UCITS funds are managed in accordance with the UCITS regulations (Ireland). Performance figures quoted are from Oasis Research and Bloomberg for the period ending 30 September 2020 for lump sum investment, using NAV-NAV prices with income distributions reinvested. Returns may vary depending on the actual date of investment and the actual date of reinvestment of income. The Key Investor Information Documents or a full Prospectus are available on request from the Management Company and Oasis Crescent Management Company Ltd. The Fund is regulated by the Central Bank of Ireland and the Sub-Fund is registered with the Financial Sector Conduct Authority for distribution in South Africa, the Swiss Financial Markets Supervisory Authority in Switzerland, the Monetary Authority of Singapore in Singapore, the Securities and Commodities Authority of the United Arab Emirates and with the Financial Conduct Authority for distribution in the United Kingdom. The Sub-Fund has a Total Expense Ratio (TER) of 1.30%, which is the average Net Asset Value of the portfolio incurred as charges, levies and fees related to the management of the portfolio. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The ratio does not include transaction costs. The current TER cannot be regarded as an indication of future TERs. Full details and basis of accolades received are available from the Management Company and Oasis Crescent Management Company Ltd. All information and opinions provided are of a general nature and the document contains no express or implied recommendation, warranty, guidance, advice or proposal that the products are appropriate to the investment objectives, financial situation or needs of any individual or entity. All data and information (unless otherwise stated) is as at 30 September 2020.