Aegon Global Equities Flash Report
See below for the October global equity funds performance and positioning information*.

 

Fund

Fund (%)

Benchmark (%)

Aegon Global Equity Income Fund

-1.75

MSCI AC World Index (USD)

-2.21

Aegon Global Sustainable Equity Fund

1.87

MSCI World AC Index (EUR)

0.53
Equity market backdrop
  • Global equity markets retreated slightly in October. A combination of slightly hotter than expected inflation data in the US, softer guidance from some mega cap tech names, uncertainty around the US Presidential election, insipid economic data in Europe and the recent rally in Chinese markets fading all acted as a drag.  

  • Financials and communication services were the only two sectors to finish in positive territory. Healthy results and guidance from some large global banks supported the sector. In contrast, real estate, health care, consumer staples and materials saw the sharpest falls.  

  • Japan was the leading global market in local currency terms. This was despite a hawkish tone from the Bank of Japan and an uncertain political situation following election results. The ECB’s third rate cut of the year was not enough to boost European markets, as concerns over weak economic data and industrial production caused the region to underperform. Emerging markets also struggled, given the recent rally in China lost steam and the stronger US dollar. 
Aegon Global Equity Income Fund

 

  • The fund delivered a distribution yield of 2.3% at the start of October compared to the 1.9% offered by the MSCI ACWI.

  • Key stock contributors included our holdings in US banking giants Morgan Stanley and JP Morgan, while other financials such as CME Group and Cincinnati Financial also performed well.  

  • TSMC beat expectations with its Q3 results and raised forward guidance; the big news was an increased gross margin of 58% due to higher utilization.

  • Lack of exposure to NVIDIA (due to the fund’s income criteria) was the largest detractor on a relative basis.

  • Sekisui House was a major drag on performance, but this was largely a function of the market rather than due to material company specific news.  

  • Elsewhere, Colgate-Palmolive fell despite Q3 earnings beating consensus forecast, and fellow defensive holdings Merck and AstraZeneca also pulled back, highlighting the nature of the market. 

Article 8

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Aegon Global Sustainable Equity Fund
  • Semiconductor-related stocks enjoyed a positive month, with our holdings in Chroma ATE, TSMC, NVIDIA and Marvell Technology all adding value.

  • TSMC beat expectations with its Q3 results and raised forward guidance, while Chroma ATE’s metrology tool has been adopted by the world’s leading semiconductor foundry company.

  • Within our UK small-cap holdings, Trainline and Trustpilot performed well, with the former upgrading full-year guidance for the second time in a few months.

  • In contrast, it was a weaker month for a number of healthcare holdings, with Icon, Danaher and Avantor all detracting due to similar themes, including underwhelming forward guidance.  

  • Elsewhere, OLED specialist Universal Display Corp fell after it lowered full-year guidance due to softer materials demand. 

Article 9

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*Source: Lipper as at 31 October 2024. NAV to NAV, noon prices, income reinvested, net of ongoing charges, excluding entry or exit charges. Performance for the Aegon Global Equity Income Fund is for the C Inc USD share class. Performance for the Aegon Global Sustainable Equity Fund is for the B Acc EUR share class, the Fund launched 21 April 2016. The performance benchmark for the Aegon Global Equity Income Fund and the Aegon Global Sustainable Equity Fund is the MSCI All Countries World Index. Note: index benchmarks have close of day prices. The peer group for the Aegon Global Equity Income Fund is the Lipper Global Equity Global Income.

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Risks

The main risks of investing in these funds are:

 

Liquidity

Other markets

Concentration

Foreign exchange

Global Equity Income Fund

✘

✘

✘

 ✘

Global Sustainable Equity Fund

✘

✘

✘

 ✘


For more information on the risks involved with these funds please see the Prospectus/KIID.

Calendar Year Performance (%)

Calendar Year Performance (%)

Source: Lipper as at 31 December 2023. NAV to NAV, noon prices, income reinvested, net of ongoing charges, excluding entry or exit charges. Performance for the Aegon Global Equity Income Fund is for the C Inc GBP share class. Performance for the Aegon Global Sustainable Equity Fund is for the B Acc GBP share class, the Fund launched 21 April 2016. The performance benchmark for the Aegon Global Equity Income Fund and the Aegon Global Sustainable Equity Fund is the MSCI All Countries World Index GBP.

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This is a marketing communication. Please refer to the following legal documents of the UCITS before making any final investment decisions. For UK investors: This product is based overseas (Ireland) and is not subject to UK sustainable investment labelling and disclosure requirements. Please read the Key Investor Information, Prospectus, Supplementary Information Document and Application Form carefully. Consider getting financial advice if you need help to understand the investment and both the risks and opportunities involved. This product is authorised overseas but not in the United Kingdom and the Financial Ombudsman Service is unlikely to be able to consider complaints related to the product, its operator or depositary. Any claims for losses relating to the operator or depositary of this product are unlikely to be covered under the Financial Services Compensation Scheme. For EU investors: please refer to the Prospectus and the PRIIPs KID. The relevant documents can be found at aegonam.com. The principal risk of this product is the loss of capital. 


Past performance does not predict future returns. Outcomes, including the payment of income, are not guaranteed.


Opinions and/or example trades/securities represent our understanding of markets both current and historical and are used to promote Aegon Asset Management's investment management capabilities: they are not investment recommendations, research or advice. Sources used are deemed reliable by Aegon Asset Management at the time of writing. Please note that this marketing is not prepared in accordance with legal requirements designed to promote the independence of investment research, and is not subject to any prohibition on dealing by Aegon Asset Management or its employees ahead of its publication.

 

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Fund Charges are taken from income but will be taken from capital where income is insufficient to cover charges, except the Aegon Global Equity Income Fund where the fund charges are deducted from capital which has the effect of increasing income distributions but constraining capital growth.


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