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Our overweight to consumer staples was our primary driver of underperformance. Over the month our positions in Costco, Unilever, Nestle and Procter & Gamble were among our largest detractors.
On the other hand, our overweight to technology and underweight to healthcare limited our underperformance. Nvidia, Oracle, Cisco and TSMC were among our largest contributors in June.
We also sold out of our position in UBS during the month. This decision was driven by the company’s deteriorating CHX score.
We remain cautious in positioning our portfolio and continue to focus on higher quality companies.
North America | 58.4 % |
Europe | 29.2 % |
Asia | 8.5 % |
Asia-Pacific | 4.0 % |
The social theme is one of the most disregarded areas within ESG. Yet we believe that companies providing positive experiences to both their customers and employees are better positioned to achieve superior returns over the long run.
Market environment
Investor sentiment was buoyed by the continued resilience of the US economy, easing political uncertainty, and signs of diminishing pressure on interest rates.
Technology and AI-related stocks led the rally, with standout performances from Nvidia, Alphabet, and Amazon.
While Wall Street outperformed other developed markets, it was surpassed by emerging markets, which benefited from a weaker US dollar.
However, European value sectors, particularly banks and industrials, outperformed the European market.