| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.2% | 6.5% | -5.4% |
The Bell Global Equities Fund returned 6.5% in Q2 2026 but underperformed its benchmark by 6.1% as momentum-driven markets favored cyclical value and speculative areas over quality. The fund's QARP approach faced headwinds from extreme market concentration, with the top 20 stocks driving 83% of index returns and AI-related names accounting for 90% despite representing only 30% of the index. Geopolitical developments dominated the quarter, with a fragile US-Iran agreement in June reopening the Strait of Hormuz and triggering commodity price declines, while central banks turned hawkish on energy-driven inflation. The portfolio added semiconductor equipment exposure through Screen Holdings, which surged 50%, and established positions in Legrand and Lowe's. Despite recent underperformance, portfolio fundamentals remain resilient, with holdings trading at approximately 25% discounts to year-ago and 10-year average valuations. The manager believes the current dislocation has created one of the most attractive forward-looking risk-reward profiles in years, with early July showing initial signs of momentum leadership unwinding.
The Bell Global Equities Fund employs a Quality at a Reasonable Price (QARP) approach, focusing on high-quality businesses with strong returns on capital, robust balance sheets, and attractive long-term earnings growth prospects purchased at sensible valuations.
The manager believes the portfolio is considerably better positioned than recent returns suggest, and that the current environment has created one of the most attractive forward-looking risk-reward profiles seen for a long time. While quality investing has experienced periods of relative underperformance before, the magnitude of the current dislocation is among the most extreme observed. History provides no guarantee, but previous periods of significant quality underperformance have ultimately been followed by attractive relative returns as share prices re-align with underlying earnings growth and business fundamentals. Early signs in July suggest potential for an unwind in narrow momentum leadership, though it is too early to conclude this represents a sustained change in market leadership.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 15 2026 | 2026 Q2 | 6146.T, 7735.T, AAPL, ACN, AMZN, APH, AVGO, CDNS, CTS1.DE, GOOGL, JPM, LOW, LR.PA, MA, META, MSFT, NVDA, SAP, TSM, V | AI, Geopolitical, Global Equities, momentum, Quality, semiconductors, technology, Valuation discipline | - | Bell Global Equities underperformed in Q2 2026 as extreme momentum concentration overwhelmed its quality-focused approach. The fund added semiconductor equipment and AI infrastructure plays while maintaining valuation discipline. Portfolio holdings now trade at 25% discounts to historical averages despite resilient fundamentals. Management views the current quality dislocation as among the most extreme observed and believes the portfolio is positioned for attractive long-term returns as fundamentals regain prominence. |
| Apr 29 2026 | 2026 Q1 | 4307.T, BOOT, DB1.DE, MELI, NKE, ODFL, TEL | AI, energy, geopolitics, Global Equities, Quality, technology, volatility |
DB1.DE BOOT TEL 4307.T MELI |
Bell Global Equities underperformed in March as Middle East conflict drove oil to $120 and broad risk-off sentiment. AI disruption fears continued pressuring quality strategies despite fund's AI beneficiary holdings. Management actively repositioned portfolio, adding TE Connectivity and MercadoLibre while trimming Nike. Sees improving opportunity set in dislocated quality businesses despite near-term macro uncertainty. |
| Jan 23 2026 | 2025 Q4 | 3064.T, 6098.T, 8697.T, AAPL, ACN, AMZN, AUTO.L, AVGO, BOOT, GOOGL, GWW, JPM, LPLA, META, MSFT, NVDA, ODFL, SAP.DE, SNPS, TSCO, V | financials, Global Equities, industrials, QARP, Quality, technology |
ODFL TSCO GWW LPLA JKHY |
Bell's quality-focused global equity strategy underperformed in December as risk-on sentiment favored momentum over fundamentals. Despite challenging 2025 performance, the team maintains conviction in their QARP approach, citing compelling valuations across quality businesses and expecting a transition toward earnings-driven market leadership in 2026 that should favor their investment style. |
| Oct 14 2025 | 2025 Q3 | AAPL, AMZN, ASML, CNM, COLOB.CO, GOOGL, META, MMC, MSFT, NVDA, NVO, ORCL, PCTY, SAP.DE, SGE.L, SNPS, TER, TSM, V, WM | global, growth, Quality, semiconductors, technology, valuation |
ASML SGE WM |
Bell Global Equities Fund underperformed in September as quality investing faced headwinds from momentum-driven markets favoring speculation over fundamentals. ASML led gains on AI demand while new positions in Sage Group and Waste Management reflect opportunistic deployment into quality businesses at attractive valuations. Managers remain confident fundamentals will reassert themselves. |
| Jun 30 2025 | 2025 Q2 | 6146.T, AAPL, AIR.PA, AMD, AMZN, ANET, AON, AVGO, BF-B, BJ, CSCO, GOOGL, LULU, META, MSFT, NESN.SW, NVDA, NVO, ORCL, TSM | AI, Cloud, global, growth, Quality, semiconductors, technology |
ORCL 6146.T LULU BJ AIR.PA NFLX |
Bell Global Equities Fund delivered 1.8% returns in June, driven by Oracle's AI-cloud momentum and semiconductor strength. The fund added Airbus and BJ's Wholesale Club while taking profits on Netflix. Despite market exuberance concerns and geopolitical risks, the manager maintains conviction in quality-at-reasonable-price approach for medium-term outperformance. |
| Apr 30 2025 | 2025 Q1 | 4684.T, AAPL, ADP, AMZN, ASML, AUTO.L, AVGO, BJ, BNZL.L, DECK, EW, FI, GOOGL, ICLR, IT, META, MSFT, NVDA, NVO, OR.PA, PEP, RMV.L | Cloud, Global Equities, Quality, tariffs, technology, Trade Policy | - | Bell Global Equities Fund fell 2.0% in April amid tariff-driven volatility, underperforming by 0.2%. Strong contributors OBIC and Auto Trader Group benefited from defensive qualities and tariff protection. Bunzl faced operational headwinds but trades at attractive valuation. New positions in Deckers and Gartner capitalize on quality companies at discounted prices. Quality-focused strategy continues targeting resilient businesses. |
| Dec 31 2024 | 2024 Q4 | 0700.HK, AAPL, ADBE, AMZN, ANET, AVGO, BESI.AS, DEO, EL, FI, GOOGL, LULU, MSFT, NESN.SW, NESTE.HE, NVDA, NVO, PEP, RMS.PA, UNH | AI, Global Equities, Performance Attribution, Quality, small caps, technology |
GOOGL LULU UNH AVGO CLH |
Bell Global Equities Fund gained 20.2% in 2024 but lagged benchmark due to stock selection and lack of exposure to mega-cap momentum names. Manager sees attractive opportunities in undervalued small and mid-cap equities positioned for reversal in 2025, while maintaining quality-focused approach and watching for inflation risks that could challenge current market conditions. |
| Jun 30 2024 | 2024 Q2 | 3064.T, AAPL, ADBE, AMZN, CRDA.L, DEO, FI, GOOGL, MA, MSFT, NESN.SW, NESTE.HE, NKE, ORCL, POOL, QCOM, ROG.SW, ULTA, UNH, V | AI, global, Quality, software, technology, value |
ORCL ADBE NKE 4768.T |
Bell Global Equities Fund underperformed in June as narrow market leadership favored large-cap tech over the fund's quality-focused approach. Oracle and Adobe drove gains while Nike detracted on guidance concerns. The manager remains confident in the quality-at-reasonable-price strategy, adding new positions while maintaining valuation discipline despite current headwinds from momentum-driven markets. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIThe fund maintains exposure to AI infrastructure and beneficiaries, including semiconductor equipment suppliers like Screen Holdings and TSMC. However, the manager notes renewed skepticism over AI hyperscaler capex returns and emphasizes the importance of selectivity and valuation discipline as speculative enthusiasm intensifies across this part of the market. |
Semiconductors Data Centers Hyperscalers Capex Valuations |
Semiconductor CycleThe fund added Screen Holdings, the dominant supplier of wafer-cleaning systems, on the thesis that the AI-driven semiconductor capital-expenditure cycle has years to run. The stock surged over 50% in June as the market re-rated it on ongoing strength. The manager sees differentiated exposure to leading-edge semiconductor equipment demand. |
Wafer Cleaning Semi Equipment Foundries Memory Capex Cycle | |
QualityThe manager's Quality at a Reasonable Price (QARP) approach has faced headwinds in a momentum-driven market favoring cyclical value and speculative areas. Despite recent underperformance, the portfolio's underlying fundamentals remain resilient, with many holdings trading at approximately 25% below their valuations from 12 months ago and 25% below their 10-year averages, while the broader market trades at a premium. |
QARP Fundamentals Valuations Returns on Capital Balance Sheets | |
MomentumMomentum continued to dominate factor performance, outperforming by 7.5% in June alone. The market backdrop remained heavily momentum-driven with a preference for cyclical value, non-profitable, and speculative areas. The fund's underweight to Momentum has been a sizeable headwind, with concentration of returns in the top 20 performing stocks driving 83% of total market return. |
Factor Performance Market Concentration Cyclical Value Speculative | |
GeopoliticalThe Middle East conflict moved towards resolution with President Trump signing a 14-point memorandum with Iran on June 18, authorizing the reopening of the Strait of Hormuz and lifting the US naval blockade. While equities reacted positively, the truce remained fragile. The energy-driven inflation shock from geopolitical tensions split developed-market central banks on policy responses. |
Middle East Iran Strait of Hormuz Energy Shock Inflation | |
RatesThe Federal Reserve under new Chair Kevin Warsh held rates at 3.50%-3.75% but the dot plot turned decidedly hawkish, with the median 2026 projection implying a hike as 17 of 18 officials saw inflation risks skewed to the upside. The ECB hiked 25bps to 2.25%, while the Bank of England held at 3.75% despite hawkish dissents. |
Federal Reserve Dot Plot Hawkish ECB Bank of England | |
CommoditiesCommodities directly reflected Middle East de-escalation. The World Bank's Energy Price Index dropped 18% for the month, driven by a 21% decline in Brent crude as supply expectations improved. Fertilizer prices plunged over 21%, precious metals slid 9% with gold posting its worst month since June 2013, while coal bucked the trend on Chinese production suspensions. |
Oil Brent Crude Gold Fertilizers Energy Prices | |
IT ServicesAccenture was among the largest detractors, experiencing its most severe drawdown since listing three decades ago. Trading at just 8.5x 2027 earnings with a 14% free cash flow yield and 5% dividend yield, the manager believes the recent weakness creates compelling asymmetry. The company continues to reshape itself and generates US$11bn of annual free cash flow, with material upside potential from depressed levels. |
Accenture Valuation Free Cash Flow Restructuring Cyclical Headwinds | |
| 2026 Q1 |
AIThe ongoing AI disruption narrative has been a key driver of market behavior, with periods of indiscriminate selling extending beyond pure software into adjacent sectors. The fund has exposure to AI beneficiaries including Teradyne, Fujikura, Hoya and Keysight Technologies, though relative outperformance from these holdings has been offset by valuation contraction elsewhere. The market's treatment of stocks with perceived AI competitive exposure has remained largely indiscriminate. |
Artificial Intelligence Technology Disruption Software Semiconductors |
QualityThe fund continues its Quality at a Reasonable Price approach despite challenging conditions for quality-oriented investing. The manager observes attractive dislocations across high-quality businesses with durable competitive positions, strong balance sheets and long-term growth potential. Periods of heightened dispersion and dislocation have historically provided the foundation for stronger future returns. |
Quality Value Fundamentals Balance Sheets Competitive Moats | |
EnergyEnergy was the only sector to generate positive returns during March amid the escalation of Middle East conflict. The forced closure of the Strait of Hormuz led to stranded shipments and supply shock concerns, with crude prices surging to approximately US$120 per barrel. The portfolio's structural underweight to Energy represented the most significant allocation headwind to relative performance. |
Oil Energy Geopolitics Supply Shock Commodities | |
GeopoliticsThe escalation of conflict in the Middle East was the key development driving market volatility, with tensions between Israel, the United States and Iran intensifying. The forced closure of the Strait of Hormuz proved most destabilizing given its critical importance for global oil supply. A tentative ceasefire was reached in early April, helping to stabilize sentiment. |
Middle East Conflict Iran Israel Risk | |
| 2025 Q4 |
AIMassive capex cycle linked to AI representing increasing cash flow from hyperscalers. Signs that AI adoption is flatlining with unclear use cases for profitability. Reliance on Magnificent 7 for equity market performance continues with credit markets becoming increasingly sensitive to AI companies. |
Artificial Intelligence Hyperscalers Capex Technology Valuations |
GoldExceptionally strong performance with gold returning 65% for 2025 and silver 148%. Trend has continued into 2026 with gold rising 13.3% and silver 18.9% by end of January. Extreme moves following very strong performance last year. |
Precious Metals Commodities Safe Haven Inflation Hedge | |
CreditCredit spreads remained tight at historic levels with returns mainly generated by carry. Four of the largest credit issuers in 2025 were hyperscalers. Under tight spreads surface, there is relatively high dispersion with significant refinancing requirements in 2026-2027. |
Credit Spreads Corporate Bonds Refinancing High Yield | |
GeopoliticalPresident Maduro taken from Venezuela, fracturing of Western alliance as Trump looked to acquire Greenland, protests in Iran violently suppressed. Despite these issues, markets have been somewhat benign. Tensions may make cross-border transactions more difficult. |
Geopolitics Venezuela Iran Trade Policy Risk | |
| 2025 Q3 |
QualityThe fund follows a Quality at a Reasonable Price investment approach, focusing on financially robust, well-managed companies with sustainable earnings growth. The current environment has been challenging for quality-focused investors, with the MSCI World Quality Index underperforming by around 9% over the past 12 months. |
Quality Valuation Fundamentals Earnings Growth |
AIASML benefited from renewed investor interest amid strong AI-related demand, with several analysts upgrading the stock. The company's technology moat remains intact and adoption of its next-generation high-NA EUV system could accelerate in the second half of FY26. |
AI Semiconductors Technology Demand | |
E-commerceMonotaRO is positioned as the leading e-commerce platform in the fragmented Japanese Maintenance, Repair, and Operations market. This market leadership should enable the company to continue capturing substantial market share from traditional, inefficient distributors. |
E-commerce Digital Market Share Japan | |
| 2025 Q2 |
AIOracle's cloud-infrastructure revenue soared 50% year-on-year driven by AI demand, with management forecasting continued acceleration. DISCO Corp benefited from robust demand from advanced semiconductor foundries and stabilisation in EV-related power devices, with market responding favourably to capacity expansion plans linked to generative AI and next-generation communications. |
Cloud Data Centers Semiconductors Oracle DISCO |
CloudOracle's cloud narrative drove decisive re-rating with cloud-infrastructure revenue up 50% year-on-year to over US$3 billion, while remaining performance obligations climbed 41%. A multiyear cloud contract valued at US$30-billion-per-year was revealed, widely rumoured to be associated with OpenAI's Stargate data-centre programme. |
Data Centers AI Oracle Infrastructure Growth | |
| 2025 Q1 |
Trade PolicyPresident Trump's Liberation Day announcement introduced sweeping universal tariffs across all trading partners, triggering immediate flight to safety and market volatility. The announcement was later paused on April 9 to allow time for negotiations, leading to recovery in risk asset prices. |
Tariffs Trade Wars Policy Volatility Risk |
CloudOBIC benefitted from Japanese SMEs migrating their ERP platforms to the cloud, with Japan still lagging behind other developed countries in cloud data usage and penetration. The company has consistently generated double-digit operating profit growth since 2017. |
ERP Migration Japan SME Growth | |
QualityThe fund focuses on quality companies with consistently high returns, strong balance sheets, and defensive characteristics. Examples include Gartner's sector-leading profit margins and strong cash conversion, and Deckers' impressive cash conversion and net cash position. |
Margins Returns Balance Sheet Defensive Cash | |
| 2024 Q4 |
AIAlphabet continues to be attractively valued with double-digit growth underwritten by advancements in AI and supercomputing, enabling the company to remain at the leading-edge of search. Broadcom is a key player in the booming AI market where they develop custom chips used in data centres tailored to specific customer needs. |
Artificial Intelligence Supercomputing Custom Chips Data Centers |
Small CapsSmall and mid-cap equities look poised to benefit looking forward. The MSCI World SMID Cap Index has lagged the corresponding large cap index by over 20% over the past two years, marking the worst relative performance this century. This underperformance has been unwarranted and leaves the sub-asset class well-positioned for a strong reversal in 2025. |
SMID Cap Relative Performance Reversal Underperformance | |
QualityThe fund maintains its quality-at-a-reasonable-price (QARP) approach, focusing on consistently high returning companies. Style influences worked against the portfolio due to structural biases towards the underperforming Quality and Low Risk factors during the period. |
QARP High Returns Low Risk Style Factors | |
| 2024 Q2 |
AIStrong demand for AI large language model training and inferencing drove Oracle's cloud infrastructure growth, with management guiding 50%+ OCI growth in FY25. Oracle signed IaaS contracts totaling US$12.5 billion with 43% YoY growth, including partnerships with Google, Microsoft, and OpenAI. The AI theme continues to propel technology-related names higher across semiconductors, software, and hardware segments. |
Cloud Data Centers Software Infrastructure |
QualityThe fund maintains its philosophy of buying quality companies at reasonable valuations, focusing on consistently high returning companies with strong fundamentals. This approach steers away from companies with cyclical earnings and maintains valuation discipline. The strategy emphasizes lower risk stocks with better earnings stability, lower balance sheet leverage, and lower beta characteristics. |
Value Earnings Growth Dividends |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 29, 2026 | Fund Letters | Bell Global Equities Fund | DB1.DE | Deutsche Boerse AG | Financial Data & Stock Exchanges | Financial Exchanges & Data | Bull | - | Clearing Services, Derivatives Trading, Europe, Financial Exchanges, high-margin, market data, recurring revenue, Volatility Beneficiary | Login |
| Apr 29, 2026 | Fund Letters | Bell Global Equities Fund | BOOT | Boot Barn Holdings, Inc. | Apparel Retail | Specialty Retail | Bull | New York Stock Exchange | Apparel, growth, same-store sales growth, SMID-Cap, Specialty retail, store rollout, US, Western Wear | Login |
| Apr 29, 2026 | Fund Letters | Bell Global Equities Fund | TEL | TE Connectivity Ltd. | Electronic Components | Electronic Components | Bull | New York Stock Exchange | AI infrastructure, Connectors, double-digit growth, Electric Vehicles, Electronic Components, Free Cash Flow, Industrial automation, shareholder returns | Login |
| Apr 29, 2026 | Fund Letters | Bell Global Equities Fund | 4307.T | Nomura Research Institute, Ltd. | Information Technology Services | IT Services | Bull | New York Stock Exchange | AI implementation, Consulting, cost optimization, financial services, Fixed-Price Contracts, IT services, Japan, manufacturing | Login |
| Apr 29, 2026 | Fund Letters | Bell Global Equities Fund | MELI | MercadoLibre, Inc. | Internet Retail | Internet & Direct Marketing Retail | Bull | NASDAQ | competitive moat, e-commerce, Emerging markets, founder-led, growth, Latin America, marketplace, sustained profitability | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | ODFL | Old Dominion Freight Line Inc. | Industrials | Cargo Ground Transportation | Bull | NASDAQ | Cyclicals, Logistics, Ltl, Pricing, Trucking | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | TSCO | Tractor Supply Company | Consumer Discretionary | Specialty Retail | Bear | NASDAQ | guidance, retail, Rural, seasonality, Weather | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | GWW | W.W. Grainger Inc. | Industrials | Industrial Distribution | Bull | New York Stock Exchange | cashflow, Industrial distribution, Margins, MRO, scale | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | LPLA | LPL Financial Holdings Inc. | Financials | Investment Banking & Brokerage | Bull | NASDAQ | Advisors, Brokerage, Inflows, operating leverage, wealth management | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | JKHY | Jack Henry & Associates Inc. | Information Technology | Application Software | Bear | NASDAQ | Capital Rotation, Core banking, Fintech, Software, valuation | Login |
| Oct 14, 2025 | Fund Letters | Ned Bell | ASML | ASML Holding NV | Information Technology | Semiconductor Equipment | Bull | Euronext Stock Exchange | AI, CapEx, Euv, growth, Lithography, semiconductors, technology | Login |
| Oct 14, 2025 | Fund Letters | Ned Bell | SGE | Sage Group PLC | Information Technology | Software | Bull | London Stock Exchange | AI, cloud, growth, Margins, SaaS, SMB, Software | Login |
| Oct 14, 2025 | Fund Letters | Ned Bell | WM | Waste Management Inc. | Industrials | Environmental Services | Bull | NYSE | defensive, dividends, FCF, infrastructure, Pricing power, utilities, waste | Login |
| Jun 30, 2025 | Fund Letters | Bell Global Equities Fund | ORCL | Oracle Corporation | Information Technology | Systems Software | Bull | NASDAQ | AI, backlog growth, cloud infrastructure, data centers, Enterprise software, hyperscale, SaaS | Login |
| Jun 30, 2025 | Fund Letters | Bell Global Equities Fund | 6146.T | DISCO Corporation | Information Technology | Semiconductor Equipment | Bull | Tokyo Stock Exchange | AI infrastructure, capacity expansion, EV Power Devices, Foundries, Japan, Precision Manufacturing, semiconductor equipment | Login |
| Jun 30, 2025 | Fund Letters | Bell Global Equities Fund | LULU | Lululemon Athletica Inc. | Consumer Discretionary | Apparel, Accessories & Luxury Goods | Bull | NASDAQ | athletic apparel, brand strength, Canada, Comparable Growth, product innovation, turnaround, US market | Login |
| Jun 30, 2025 | Fund Letters | Bell Global Equities Fund | BJ | BJ's Wholesale Club Holdings Inc. | Consumer Staples | Hypermarkets & Super Centers | Bull | NYSE | capital allocation, consumer staples, membership model, recurring revenue, Regional Focus, Value retail, Warehouse club | Login |
| Jun 30, 2025 | Fund Letters | Bell Global Equities Fund | AIR.PA | Airbus SE | Industrials | Aerospace & Defense | Bull | Euronext Paris | Aerospace, backlog, cash flow, Commercial Aircraft, Defense, Europe, market share, Production Recovery | Login |
| Jun 30, 2025 | Fund Letters | Bell Global Equities Fund | NFLX | Netflix Inc. | Communication Services | Interactive Media & Services | Neutral | NASDAQ | digital advertising, entertainment, profit-taking, Streaming, Subscriber Growth, technology, valuation | Login |
| Dec 31, 2024 | Fund Letters | Bell Global Equities Fund | GOOGL | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | antitrust, Artificial Intelligence, Communication Services, growth, search engine, Supercomputing, technology | Login |
| Dec 31, 2024 | Fund Letters | Bell Global Equities Fund | LULU | Lululemon Athletica Inc. | Consumer Discretionary | Textiles, Apparel & Luxury Goods | Bull | NASDAQ | athletic apparel, Brand, China, Consumer Discretionary, growth, retail, turnaround, US market | Login |
| Dec 31, 2024 | Fund Letters | Bell Global Equities Fund | UNH | UnitedHealth Group Inc. | Health Care | Health Care Providers & Services | Bull | NYSE | diversification, Health Care, Insurance, Pharmacy Benefit Manager, Regulatory risk, scale, Value | Login |
| Dec 31, 2024 | Fund Letters | Bell Global Equities Fund | AVGO | Broadcom Inc. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | Artificial Intelligence, custom chips, data centers, Enterprise software, high margins, M&A, semiconductors, Software | Login |
| Dec 31, 2024 | Fund Letters | Bell Global Equities Fund | CLH | Clean Harbors Inc. | Industrials | Commercial Services & Supplies | Bull | NYSE | Asset Scarcity, environmental services, Hazardous Waste, Manufacturing Onshoring, Pfas, Pricing power, Regulatory tailwinds | Login |
| Jun 30, 2024 | Fund Letters | Bell Global Equities Fund | ORCL | Oracle Corporation | Information Technology | Systems Software | Bull | NASDAQ | AI infrastructure, cloud infrastructure, Database Software, Enterprise software, growth, Partnerships, SaaS | Login |
| Jun 30, 2024 | Fund Letters | Bell Global Equities Fund | ADBE | Adobe Inc. | Information Technology | Application Software | Bull | NASDAQ | AI Resilience, Application Software, creative software, digital media, growth, SaaS | Login |
| Jun 30, 2024 | Fund Letters | Bell Global Equities Fund | NKE | NIKE, Inc. | Consumer Discretionary | Footwear | Neutral | NYSE | Apparel, Athletic Footwear, brand value, China exposure, innovation, margin pressure, Wholesale Channel | Login |
| Jun 30, 2024 | Fund Letters | Bell Global Equities Fund | 4768.T | OBIC Co., Ltd. | Information Technology | Application Software | Bull | Tokyo Stock Exchange | cloud migration, customer retention, ERP software, Japan, market leader, SME market, Value Entry | Login |
| TICKER | COMMENTARY |
|---|---|
| 7735.T | Among individual exposures, notable strength came from Japanese listed Screen Holdings, a new addition to the portfolio at the start of the month. The shares surged more than 50% through June, as the market aggressively re-rated the stock on the ongoing strength of the AI-driven semiconductor capital-expenditure cycle. Screen is the world's dominant supplier of wafer-cleaning systems – the machines that wash silicon wafers between fabrication steps. Cleaning is one of the most frequently repeated processes in chipmaking, performed hundreds of times per wafer, and Screen's tools sit in the fabrication facilities of virtually every leading logic, foundry and memory producer. We believe the company offers differentiated exposure to leading-edge semiconductor equipment demand that the market had partly overlooked during the early-2026 technology rally and accordingly initiated a position in early June. We see room for further upside to earnings estimates and the valuation multiple, although we already trimmed some profits by the end of the month as the upside potential had reduced following the sharp rally. |
| 6146.T | Other positive contributors included the Information Technology names of Disco, Amphenol and TSMC, as well as our underweight exposure to Apple. |
| TSM | Other positive contributors included the Information Technology names of Disco, Amphenol and TSMC, as well as our underweight exposure to Apple. |
| APH | Other positive contributors included the Information Technology names of Disco, Amphenol and TSMC, as well as our underweight exposure to Apple. |
| AAPL | Other positive contributors included the Information Technology names of Disco, Amphenol and TSMC, as well as our underweight exposure to Apple. |
| ACN | Regarding laggards, the global professional services company Accenture was among the largest, with the shares remaining in the midst of their most severe drawdown since listing three decades ago. While we acknowledge both the transient cyclical macro headwinds and the potentially more pervasive structural risks presented by the rapid progress of AI, we believe the recent share price weakness creates a compelling asymmetry in the investment case. Following the post-results move, the shares traded at just 8.5x 2027 earnings, a 14% free cash flow yield and a 5% dividend yield. While the result itself was mixed – light on the top line but solid on the bottom line – the company continues to reshape itself both organically and via acquisition, and its -US$11bn of annual free cash flow leaves significant room to fund the highly attractive dividend and ongoing share repurchases. Accenture remains one of the highest-quality operators in IT Services, with a capable management team that has created shareholder value across multiple cycles, and we believe has material upside potential from current depressed levels. |
| MSFT | Other detractors included Microsoft (Information Technology) and Alphabet (Communication Services), as well as our non-exposure to the semiconductor & memory names of KLA, Lam Research and Micron Technology. |
| GOOGL | Other detractors included Microsoft (Information Technology) and Alphabet (Communication Services), as well as our non-exposure to the semiconductor & memory names of KLA, Lam Research and Micron Technology. |
| LR.PA | In addition to the purchase of Screen Holdings (covered in best performers above), we also established a position in Legrand, a French listed global specialist in electrical and digital building infrastructure. The company designs and manufactures products that distribute, control and manage power and data in buildings, such as switches, sockets, circuit breakers, cable management, lighting controls, UPS systems and connected/smart-home solutions. Their market presence for such operations spans across residential, commercial and industrial markets through electrical distributors within 90 countries. Its fastest-growing segment is data centres, which is expected to make up ~30% of revenues in FY26, making it a key AI-infrastructure SMID-cap play alongside the large-caps of Schneider, ABB and Eaton. At the time of establishing a position the stock was trading at a discount to our target valuation with a P/E of ~22x. Should the expected multiple expansion and low-teens earnings growth eventuate, we expect to see attractive upside in the name moving forward. |
| LOW | Another stock introduced to the portfolio was Lowe's, the second-largest home improvement retailer in the United States. We have owned Lowe's previously and, since exiting the position in 2024, the stock has underperformed the broader market by more than 50%. Our decision to re-enter was driven by the expectation that management's restructuring initiatives will improve profitability through enhanced product differentiation, better expense leverage, greater penetration of the professional customer segment and more disciplined working capital management, positioning the business for stronger long-term earnings growth. While the broader macroeconomic environment remains a near-term headwind, we believe this is well reflected in the current valuation. Combined with the company's leverage to an eventual recovery in the US housing market, we believe this presents an attractive long-term risk-reward opportunity. |
| CDNS | On the other side of the ledger, our holding in Cadence Design Systems, the US computational software company, was the sole exit during June, crystallising strong gains following our early-2026 purchase. The position was established after the February technology drawdown, on the thesis that Cadence's half of the electronic design automation duopoly represents a mission-critical, recurring-revenue toll road on rising silicon complexity and the proliferation of custom AI chips. The thesis played out considerably faster than anticipated, with QI revenue up 19% year-on-year, EPS up 25%, and full-year 2026 revenue guidance of approximately US$6.2 billion coming in ahead of expectations. News flow provided further tailwinds, with management announcing a multi-year design technology co-optimisation collaboration with Intel Foundry targeting the 14A process. Over our four-month holding period, the shares rallied more than 30% and by month-end traded above 45x forward earnings, versus a software industry average in the low twenties. The exit reflects valuation discipline rather than diminished conviction in franchise quality. Cadence remains on our watchlist, watching closely for a more attractive re-entry opportunity. |
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