In this month's manager commentary, they write that China's government is now getting tough and focusing on boosting consumption through various stimulus measures. The Chinese central bank is said to be on board and is supporting the government in the form of reduced capital requirements for banks and a lower key interest rate.
Furthermore, it is highlighted that central banks are starting to get a grip on inflation, with many economies' inflation statistics coming in below target.
"Moderately weak economic statics point to lower inflationary pressures, and current interest rate levels simply do not seem necessary. No wonder then that double cuts are being priced in to a greater extent than before, especially as the Fed opened the lid on that can during the month, cutting from 5.5% to 5.0%," the managers write.
Emerging markets, cyclicals, rate-sensitive sectors and growth companies had a good end to the month. The market's willingness to take more risk at the moment was also evident outside the stock market as copper outperformed gold, high yield bonds outperformed investment grade and cryptocurrencies performed strongly.
As for the fund's performance, it had a good month in terms of regions, sectors and themes.
"The Energy Efficient Technology theme rose the most, led by insulation company IBP. However, the largest contribution to returns came from Japan and Sumitomo Forestry."
During the month, Finnish elevator manufacturer Kone was added to the portfolio.
The largest holdings in the fund's portfolio were Sprouts Farmers Market, Nvidia and ABB with weights of 3.4%, 3.1% and 2.9% respectively.
Simplicity Green Impact, % | September, 2024 |
Fund MM, % change | 2,6 |
Fund this year, % change | 18,0 |