# 3Ongoing Charges Figure, is based on expenses over a year. The figure includes annual management charge but not the transaction costs. Such figures may vary from time to time.
| Monthly Performance Commentary |
| --- |
| Market Review Global equities rose again in in June as labour markets and economic activity across the world continued to show a healthy recovery despite the rising number of cases from the Delta variant which has weighed slightly on investor sentiment. US stocks rallied as new job creation in May grew materially from the previous month and the US Federal Reserve maintained its loose monetary policy. Sentiment was further bolstered by a bipartisan agreement of a $1trn infrastructure spending plan, raising confidence of an infrastructure bill being passed in the US Congress. However, markets were slightly rattled by the meaningful upgrades in the Federal Reserve’s inflation outlook and its hints at raising interest rates in 2023, one year earlier than market expectations. European stocks pushed higher as the labour market continued to strengthen, with Eurozone unemployment rate falling 0.2% to 7.9%, and Eurozone business activity indicators accelerating. The European Central Bank said it would accelerate its asset purchase programme over the next quarter compared to the first few months of the year, supporting a favourable economic environment. In the UK, sentiment was slightly hampered by the delay in the full lifting of restrictions due to concerns of the rise in the Delta variant. Asian stocks generally rose due to the continued commitment of accommodative monetary policy by central banks globally, despite concerns over the spread of the Delta variant. Some Asian countries have re-imposed fresh lockdowns like Indonesia, whilst some others have tightened existing restrictions like Japan, Malaysia and Thailand. Chinese stocks retreated due to rising Sino-West tensions following a meeting of the G7 leaders. Factor Performance Overall style factor performance was not very directional, while regional divergence increased in June, reflecting in part the different vaccination progress and uneven economic recovery. The more defensive factors outperformed their pro-cyclical counterparts in the period. Within alpha factors, Industry Momentum was for a third consecutive month the best performing factor globally. On a similar path, Low Risk and Quality factors also outperformed. At other end of the spectrum, in the pro-cyclical universe, Value was the worst-performing factor in the month, as it seemed to struggle for direction lately. Size was also slightly underwater, despite some regional differences. Regionally, in North America, the picture was largely consistent with global performance except that Value underperformance was most pronounced in the region and Industry Momentum factor outperformance more muted, while Quality performed slightly better than Low Risk and Size ended the month flat. In Europe, the defensive – pro cyclical spread was wider, with the Low Risk factor having topped performance, followed by Industry Momentum and Quality, while Value and Size fell considerably behind. Similarly, the UK was also with the theme defensiveness, as Low Risk outperformed the most, along with Quality that was also well rewarded. Industry Momentum was relatively flat, Value underperformed and Size was the laggard factor, in the country. In the Asia Pacific ex Japan universe, Value did not suffer as much as in other regions, while all other factors, including Fundamental Momentum and Size, outperformed in the period. Noteworthy, in Japan, Size was the best performing factor, Value was flat, and Low Risk lagged. In the risk space, Growth was moderately rewarded, particularly on performance uptick in the second half of the month, as it continued to contrast the overall Value picture and dynamics. Fund Commentary On a portfolio level, Industry Momentum and Quality contributed to performance, however it was offset by losses from the Value factor exposure, while Size and Low Risk contributions were largely neutral. Industries On an industry basis, our overweight allocations to Health Care Equipment & Services and Semiconductors & Semiconductor Equipment coupled with our underweight exposures to Banks and Consumer Services contributed to performance. Conversely, our overweight allocations to Insurance and Capital Goods along with our underweight exposures to Software & Services and Energy weighed on performance. Countries On a country basis, our overweight allocations to Australia and Italy coupled with an underweight exposure to United States contributed to performance. Conversely, our underweight exposures to Canada and Denmark weighed on performance. Stock Level On a stock level basis, our overweight allocations to Resmed (Health Care, USA) and Ebay (Consumer Discretionary, USA) contributed to performance. Conversely, our overweight allocations to Kinross Gold (Materials, CAN) and Axa (Financials, FRA) along with an underweight exposure to Adobe (Information Technology, USA) and Paypal Holdings (Information Technology, USA) weighed on performance. |

| Carbon Footprint | Fund | Reference Benchmark |
| --- | --- | --- |
| Carbon Intensity | 52.79 | 137.17 |

Translation (ENFR, 2021-06-30):
# 3Montant des frais courants, montant fondé sur les frais d’un exercice. Ce montant inclut les frais de gestion annuels et les frais de transaction sous-jacents et peut varier avec le temps.
| Empreinte carbone | Fonds | Indice de référence |
| --- | --- | --- |
| Intensité de Carbone | 52,79 | 137,17 |