|Latest Return Date|
|Latest 6 Months|
|Latest 12 Months|
|Latest 24 Months (pa)|
|Annualised Since Inception|
Intra-month, the Taiwanese index fell 14% peak to trough with this selloff attributable to a Covid-19 virus spike in the country. Longlead noted the magnitude of the selloff was surprising, being disproportionately greater than other markets that have also had to navigate recent virus spikes and led to heavy selling pressure in many of the Fund's long holdings in Taiwan during the month. As the initial surprise of the event passed, Taiwanese longs began to rebound late in May, continuing into early June.
Taiwan represented the vast majority of the Fund's drawdown in May. By sector, Financials exposures generated positive performance in May, while losses were experienced in Information Technology and Materials positions.
The team remains constructive on the Fund's Taiwanese investments. The government has introduced measures to stem the spread of the virus and the team expects that the companies in which the Fund is invested will ultimately rebound. Notwithstanding this, the Fund's risk management protocol is to reduce gross exposure in response to broad based events such as these where market wide uncertainty may persist for an extended period. Once conditions begin to normalise the Fund can take the opportunity to add exposure back.