Significant monetary easing continued to support the recovery in global equity markets following the steep drop in February and March. However, with rising Covid-19 infections in many parts of the world, new lockdowns and restrictions are being implemented with ongoing economic consequences, particularly on sectors such as banks, retail, travel and hospitality. On the positive side, fiscal support from most governments are still being deployed and supporting the global economy. The EU has also proposed significant green investments to kick-start their economies and to address global warming.
The strategy posted a return of 5.1% in the quarter, outperforming the MSCI AC World Index, which returned 3.9%. The positive outperformance was primarily attributed to TSMC and Thermo Fisher, while American Tower and Bank Central Asia were the most negative contributors. During the quarter, we also saw a positive development in Siemens with the spin-out of Siemens Energy which highlights the positive transformation of the company.