equity market review - capital union bank · 2021. 1. 19. · key dates in 2021. january 19, 2021...

Capital Union Bank Research [email protected]

January 19, 2021

Equity Market Review

Equity Highlights

January 19, 2021 2

Performance

Schedule

Total return performance on both the portfolios and the indices – As of Friday evening

Strategy European Global Leaders US Global Leaders Next-Gen Leaders

The performance of the Global Leaders and Next-Gen Leaders indices is given for informational purposes only and may differ from the performance of the Global Leaders and Next-Gen Leaders Funds managed by Union Securities Switzerland SA due to allocation decisions made by the Investment Manager and to running fees and management fees.

Important Events This Week Wednesday: EU CPI Thursday: BOJ Meeting, ECB Meeting, US Jobless Claims Friday: Markit Preliminary PMIs, US Crude Oil Inventories

YtD 1.23% vs 1.43% / -0.20% alpha YtD -1.27% vs 0.39% / -1.67% alphaWeekly -1.43% vs -1.21% / -0.22% alpha Weekly -2.04% vs -1.46% / -0.58% alpha

2020 -3.63% vs -2.58% / -1.05% alpha 2020 15.68% vs 18.39% / -2.71% alpha2019 32.10% vs 29.34% / 2.76% alpha 2019 35.66% vs 31.49% / 4.17% alpha2018 -6.90% vs -11.26% / 4.36% alpha 2018 1.48% vs -4.39% / 5.86% alpha

Since Inception 171.90% vs 120.23% / 51.68% alpha Since Inception 333.89% vs 274.99% / 58.89% alpha

Since August 2011 Benchmark: EuroStoxx 50 Since August 2011 Benchmark: S&P 500

YtD 0.87% vs 2.88% / -2.00% alpha YtD -1.21% vs -0.63% / -0.58% alphaWeekly -0.54% vs 0.09% / -0.63% alpha Weekly -2.89% vs -2.30% / -0.59% alpha

2020 23.83% vs 7.39% / 16.44% alpha 2020 52.51% vs 48.88% / 3.63% alpha2019 31.59% vs 18.10% / 13.49% alpha 2019 33.55% vs 39.46% / -5.91% alpha2018 -12.99% vs -16.04% / 3.05% alpha 2018 6.92% vs 0.01% / 6.91% alpha

Since Inception 63.42% vs 24.33% / 39.08% alpha Since Inception 146.73% vs 125.57% / 21.16% alpha

Since August 2017 Benchmark: Topix Since July 2017 Benchmark: Nasdaq

European Global Leaders US Global Leaders

Japanese Global Leaders Next-Gen Leaders

Key dates in 2021

January 19, 2021 3

New German Chancellor afterMerkel’s 15-year reign. Decisiveleadership for EU’s future.

Q1 Q2 Q3 Q4US Beginning of the earnings Season 15 Jan 2021 14 Apr 2021 13 Jul 2021 13 Oct 2021

Europe ECB meeting 21 Jan 2021 22 Apr 2021 22 Jul 2021 28 Oct 2021US FED meeting 26 Jan 2021 27 Apr 2021 27 Jul 2021 2 Nov 2021

Europe ECB meeting 11 Mar 2021 10 Jun 2021 9 Sep 2021 16 Dec 2021US FED meeting 16 Mar 2021 15 Jun 2021 21 Sep 2021 14 Dec 2021

World Futures expiration 19 Mar 2021 18 Jun 2021 17 Sep 2021 17 Dec 2021

Date Start Country Theme Topic20 Jan 2021 US Elections Presidential inauguration1 Mar 2021 China Geopolitical event National Congress (several days)9 Apr 2021 World Geopolitical event IMF and World bank meetings6 May 2021 UK Elections Elections : UK parliaments

13 May 2021 World Geopolitical event World Economic Forum (Singapore)23 Jun 2021 France Elections Elections: regionales23 Jul 2021 World Other Summer Olympics (Tokyo)2 Oct 2021 Japan Elections Elections: parliament (tbd)

15 Oct 2021 World Geopolitical event IMF and World bank meetings24 Oct 2021 Germany Elections Elections: Chancellor and parliament1 Nov 2021 World Geopolitical event UN Climate change conference (Glasgow)

Style Rotation in the US and Europe

January 19, 2021 4

The “Blue wave” in the US have reinitiated the rotation into value stocks even though the path of the economicrecovery remains uncertain. The style rotation has stabilized recently.

S&P 500 Growth vs Value – Sectors weights

January 19, 2021 5

Growth index has a much bigger weight in Semis(Nvidia), Software & Hardware (Microsoft, Apple,Paypal), Medias & Entertainment (Google,Facebook, Netflix), Retailing (Amazon), and in Autos(Tesla)

Value index has a much bigger weight in Telecoms(AT&T, Verizon), Health Care Equipment (Medtronic,United Health), Banks & Insurance, Industrials(Honeywell), Staples (Walmart, P&G), Energy and inUtilities

Growth index’ sectors have a much higher P/E ratio

S&P 500 Growth

S&P 500 Value

+/-S&P 500 Growth

S&P 500 Value

Information Technology 41.2 11.5 29.8 31.4 17.0Semiconductors 7.3 3.4 3.9 27.1 15.5Software & Services 20.9 5.2 15.6 33.9 20.4Hardware & Equipment 13.1 2.8 10.3 30.6 14.3

Communication Services 13.3 7.0 6.3 25.6 16.1Media & Entertainment 13.0 3.9 9.1 25.4 27.4Telecommunication 0.3 3.2 -2.9 39.2 10.6

Consumer Discretionary 17.8 7.5 10.3 42.2 23.5Automobiles 3.9 0.8 3.1 171.6 9.7Retailing 11.7 3.1 8.6 36.0 22.5Other 2.1 3.6 -1.4 29.1 34.6

Health Care 12.4 15.4 -3.0 19.6 14.9Health Care Equipment 4.9 8.5 -3.7 29.0 16.9Pharma & Biotech 7.5 6.9 0.7 16.2 13.0

Financials 2.7 19.9 -17.3 22.9 14.2Industrials 5.6 11.5 -5.9 22.2 25.3Consumer Staples 3.5 9.4 -6.0 25.9 18.7Materials 1.9 3.6 -1.7 23.4 20.3Real Estate 1.1 3.9 -2.8 49.8 45.5Utilities 0.6 5.2 -4.6 26.3 18.1Energy 0.1 5.3 -5.2 30.9

Weights P/E Ratio

S&P 500 Growth vs Value – Description

January 19, 2021 6

S&P 500 Growth index has higher price-related ratios (P/E, P/B,.), but smaller dividend yield.The Market Cap’s median is 41% bigger in the growth index.

Each Index provider has its own methodology to classify stocks in the Growth and Value styles.

In the S&P 500 methodology, 164 stocks (32.6%) belong to both styles but with different weights.These 164 stocks represent 35.2% of Growth and 31.4% of Value Indexes.

The 10 biggest stocks in common are Visa, Johnson & Johnson, P&G, United Health, Mastercard, HomeDepot, Comcast, Nike, Merck and Coca-Cola.

S&P 500 Growth

S&P 500 Value

+/-

Dividend Yield 0.9 2.5 -1.6P/E 28.5 18.1 10.4P/B 8.5 2.4 6.1P/S 4.8 1.8 3.0EV/EBITDA 17.4 13.3 4.0Debt/Assets 32.9 24.3 8.6Market Cap Median $Bn 35.9 25.5 10.5Metrics are forward 12-month estimates

S&P 500 Growth Index – Top 20 holdings

January 19, 2021 7

The Growth Index is concentratedon a few names, mainly in the Tech,Discretionary and Communicationservices sectors:

Top 10 represents 49.8%


The majority of the Top 20 stocksbelong to the USS Global Leaderstrategy

Name Sector USS Strategy P/E Weight

Apple Information Technology Global Leaders 32.0 12.3Microsoft Information Technology Global Leaders 31.5 9.7Amazon Consumer Discretionary Global Leaders 59.9 8.0Alphabet Communication Services Global Leaders 25.8 6.2Tesla Consumer Discretionary X 199.6 3.8Facebook Communication Services Global Leaders 23.0 3.6NVIDIA Information Technology X 45.8 1.9Paypal Information Technology Next-Gen 56.5 1.7Netflix Communication Services X 54.2 1.3Adobe Information Technology Global Leaders 40.8 1.3Home Depot Consumer Discretionary X 22.3 1.3Visa Information Technology Global Leaders 36.9 1.2Thermo Fisher Scientific Health Care X 23.0 1.2Salesforce.com Information Technology Global Leaders 64.8 1.2Mastercard Information Technology Global Leaders 43.3 1.2QUALCOMM Information Technology X 22.1 1.1UnitedHealth Health Care X 22.1 1.0Johnson & Johnson Health Care Global Leaders 18.8 1.0Procter & Gamble Consumer Staples Global Leaders 23.9 1.0AbbVie Health Care X 9.4 0.9

S&P 500 Value Index – Top 20 holdings

January 19, 2021 8


The Value Index is much lessconcentrated and is diversifiedacross more Sectors than theGrowth Index:




Berkshire Hathaway Financials Global Leaders 23.0 3.0JP Morgan Financials Global Leaders 14.0 2.8Walt Disney Communication Services Global Leaders 114.8 2.0Johnson & Johnson Health Care Global Leaders 18.8 1.7Bank of America Financials X 14.8 1.7Verizon Communication Services Global Leaders 11.6 1.6Intel Information Technology Global Leaders 13.2 1.6AT&T Communication Services Global Leaders 9.5 1.4Pfizer Health Care X 12.0 1.3Exxon Energy X 39.1 1.3WalMart Consumer Staples Global Leaders 25.4 1.3Cisco Systems Information Technology X 14.1 1.3Chevron Energy Global Leaders 42.1 1.2Procter & Gamble Consumer Staples Global Leaders 23.9 1.1UnitedHealth Health Care X 22.1 1.1Medtronic Health Care Global Leaders 21.7 1.0Honeywell Industrials Global Leaders 27.0 1.0Visa Information Technology Global Leaders 36.9 0.9Citigroup Financials X 10.1 0.9Wells Fargo Financials X 13.4 0.9

MSCI Europe Growth vs Value – Sectors weights

January 19, 2021 9

Growth index has a much bigger weight in Semis(ASML), Software & Hardware (SAP), Apparel (LVMH,Kering, Adidas), Retailing (Inditex), Health Care andin Staples (Nestlé, Unilever)

Value index has a much bigger weight in Telecoms(Deutsche Telekom), Automobiles, Banks &Insurance, Energy and in Utilities (Iberdrola, Enel)

Growth index’ sectors have a much higher P/E ratio

MSCI Europe Growth

MSCI Europe Value

+/-MSCI

Europe Growth

MSCI Europe Value

Information Technology 14.7 0.6 14.1 31.8 15.3Semiconductors 6.3 6.3 39.7Software & Services 6.4 0.6 5.8 30.1 15.3Hardware & Equipment 2.1 2.1 22.4

Communication Services 2.7 6.2 -3.5 26.0 13.0Media & Entertainment 1.2 1.5 -0.2 24.9 15.5Telecommunication 1.5 4.8 -3.3 27.0 12.4

Consumer Discretionary 14.0 5.7 8.3 34.3 10.6Automobiles 0.6 3.8 -3.3 42.8 8.6Retailing 3.4 0.4 3.0 39.4 24.5Apparel 8.1 0.9 7.2 31.3 13.2Consumer Services 2.0 0.6 1.4 38.8 56.8

Health Care 19.2 10.1 9.1 21.7 12.6Health Care Equipment 4.5 0.7 3.8 28.3 12.1Pharma & Biotech 14.7 9.4 5.3 20.3 12.6

Financials 5.2 25.9 -20.7 22.4 10.7Industrials 15.8 11.2 4.6 26.6 19.0Consumer Staples 19.9 12.0 7.9 22.8 14.7Materials 5.9 9.8 -3.9 30.7 13.3Real Estate 0.8 1.9 -1.1 21.8 16.3Utilities 0.9 8.8 -8.0 32.3 16.6Energy 0.8 7.6 -6.8 27.3 15.2

Weights P/E Ratio

MSCI Europe Growth vs Value – Description

January 19, 2021 10

MSCI Europe Growth index has higher price-related ratios (P/E, P/B,.), but smaller dividend yield.The Market Cap’s median is 9.9% bigger in the growth index.

Each Index provider has its own methodology to classify stocks in the Growth and Value styles.

In the MSCI methodology, 51 stocks (12.4%) belong to both styles, but with different weights. These51 stocks represent 14.8% of Growth and 13.7% of Value Indexes.

The 10 biggest stocks in common are Unilever, Airbus, Heineken, Reckitt Benckiser, Pernod Ricard,Moeller-Maersk, Vodafone, Danone, Kone and Vivendi. .

MSCI Europe Growth

MSCI Europe Value

+/-

Dividend Yield 1.9 4.2 -2.4P/E 26.0 13.2 12.8P/B 4.3 1.2 3.0P/S 3.1 1.0 2.1EV/EBITDA 15.7 8.1 7.7Debt/Assets 19.6 24.5 -5.0Market Cap Median $Bn 17.8 16.2 1.6Metrics are forward 12-month estimates

MSCI Europe Growth Index – Top 20 holdings

January 19, 2021 11

The Growth Index is not veryconcentrated and is diversifiedacross some Sectors :


Top 20 represents 47%


Name Sector USS Strategy P/E WeightNestlé Consumer Staples Global Leaders 21.6 7.0Roche Health Care Global Leaders 22.0 5.2ASML Information Technology Global Leaders 45.7 4.7LVMH Consumer Discretionary Global Leaders 56.8 3.5Unilever PLC Consumer Staples Global Leaders 21.8 3.3Astrazeneca Health Care Global Leaders 22.1 2.8SAP Information Technology Global Leaders 20.8 2.7Novo Nordisk Health Care Global Leaders 23.3 2.6Diageo Consumer Staples X 26.1 1.9L'Oréal Consumer Staples Global Leaders 51.3 1.9Air Liquide Materials Global Leaders 29.0 1.6Airbus Industrials X 31.2 1.4Adidas Consumer Discretionary X 37.4 1.4Prosus Consumer Discretionary X 42.2 1.1Kering Consumer Discretionary Global Leaders 38.7 1.1Infineon Information Technology X 34.7 1.1Philips Health Care Global Leaders 21.7 1.0Lonza Group Health Care X 51.1 1.0RELX Industrials X 23.7 1.0Safran Industrials X 72.2 0.9

MSCI Europe Value Index – Top 20 holdings

January 19, 2021 12

9 of the Top 20 stocks belong to theUSS Global Leader strategy

The Value Index is less concentratedthan the Growth Index and issimilarly diversified across Sectors :




Novartis Health Care Global Leaders 15.4 4.1Unilever PLC Consumer Staples Global Leaders 21.8 3.0RDSA Energy Global Leaders 14.6 3.0Total Energy Global Leaders 17.3 2.2Sanofi Health Care X 14.0 2.2HSBC Financials X 12.6 2.2Siemens Industrials Global Leaders 22.0 2.1Allianz Financials Global Leaders 10.9 2.0GlaxoSmithKline Health Care X 13.1 1.9Rio Tinto Materials X 18.3 1.8Enel Utilities Global Leaders 19.1 1.7Iberdrola Utilities Global Leaders 19.0 1.7BATS Consumer Staples X 8.2 1.7Schneider Electric Industrials Global Leaders 30.0 1.6BASF Materials X 18.8 1.4Zurich Insurance Financials X 19.0 1.2Bayer Health Care X 8.4 1.2BHP Group Materials X 10.6 1.2Deutsche Telekom Communication Services X 12.2 1.2BNP Financials X 10.3 1.2

Weekly Recap

January 19, 2021 13

Weekly Recap Market Review

US Markets were slightly negative before falling on Friday (S&P 500 -1.46%) as investors digested the earlydetails of Joe Biden’s economic rescue plan, in which the US president-elect pledged an additional $1.9tn infiscal stimulus, and after the December retail-sales report came in weaker than expected, underscoring thecoronavirus pandemic’s continued effect on the economy.

Trump became the 1st US president to be impeached for a 2nd time as the House of Representativescharged him with “incitement to insurrection” for his role in stirring up a mob of supporters that stormed theCapitol last week, with 10 Republicans breaking ranks to join Democrats in voting to charge him.

The US Treasury blocked an attempt by the state department to put some of China’s largest techcompanies, including Alibaba and Tencent, on a blacklist that would have banned US investors from holdingtheir stock.

The Fed expressed its willingness to maintain its current ultra-loose policy in the coming months.

Nasdaq slid (-2.30%) as Tech giants had to contain a mounting backlash against their social media sites.Twitter, Facebook and other US medias banned President Trump from their platform following the violentattack on the US capitol. Twitter’s CEO said it was the “right decision” but that it sets a dangerous precedent.

EU Markets slid (EuroStoxx 50 -1.21%) on governments’ announcements of new restrictive measures.France will extend the curfew measures in place across the country as it works to stem the tide of Covid-19infections, and raised the prospect of a new lockdown. Merkel warned that Germany may need to prolong itscoronavirus lockdown until Easter due to risks posed by a fast-spreading variant from the UK.

Armin Laschet, the prime minister of the state of North Rhine-Westphalia has been elected leader ofGermany’s governing CDUs. His victory puts him in pole position to succeed Angela Merkel as chancellor ofEurope’s most powerful economy, but saddles him with the daunting task of uniting a divided party.

The ECB is threatening to impose additional capital requirements on banks that continue to ignore requeststo rein in risk in the leveraged loan market. It said it will keep its current loose policy in the coming months.

January 19, 2021 14

European Global Leaders – Weekly Recap Equity Top News

The strategy had a negative performance and underperformed its benchmark.

Large EU pharmaceutical companies, including Roche, Novartis, Novo and AstraZeneca, rose strongly afterDeutsche bank initiated the sector, with many buy ratings and said these companies show reasonablegrowth, dividend and free cash flow yields. The sector’s valuation is discounted and should continue torebound after it underperformed during much of the 2nd Semester 2020.

Roche's Xofluza was approved by the EU for the treatment of influenza in patients older than 12 years. Thesingle-dose medicine is the first new influenza antiviral in almost 20 years, and could reduce its societalburden. It also launched 2 digital pathology image analysis algorithms which could help providing moreaccurate patient diagnoses in breast cancer.

Novartis received FDA breakthrough therapy designation for Ligelizumab to treat in chronic urticarial. Thismedicine will be assessed in phase III clinical trial program.

ASML rallied as it is supposed to gain after one of its client, the Taiwanese TSMC foundry, announced ahuge $25-28bn capex spending in 2021.

VW rose after it released to have increased electric car sales by over 200% in 2020, selling almost half asmany EVs as Tesla. But global sales fell 15.2% in 2020 due to the pandemic.

Total has become the first oil major to end its membership of an important American oil lobby group, citingits stance on climate change and support for politicians who opposed the Paris agreement. The Frenchcompany also agreed to a $2.5bn deal that includes a minority stake in India’s renewables giant Adani GreenEnergy as it expands its efforts to diversify beyond oil.

SAP warned annual cloud and software sales may decline 4% as the economic effects of the pandemiccontinue to weigh through at least the 1st half of 2021. 4Q results were otherwise better than expected.

January 19, 2021 15

US Global Leaders – Weekly Recap Equity Top News

The strategy had a negative performance and underperformed its benchmark.

JPMorgan, Citigroup and Wells Fargo have released more than $5bn of pandemic-era loan loss reserves ina sign of their optimism for the economic outlook, even as the US reels from the latest wave of Covid-19.JPMorgan slid even after reporting a 42% jump in Q4 earnings after releasing almost $3bn it reserved forloan losses. Its total trading revenue grew 20% YoY, while investment banking revenue was up 53% amid adealmaking and fundraising boom.

Intel surged after the current CEO stepped down. During the 2 years he served as the CEO, Intel sufferedmajor blows from its competitors. During the summer of 2020, it reported a delay in the shipment of the latestgeneration chips. On the other hand, AMD was already shipping its chipset in the latest laptops.

According to Bloomberg, AT&T is in discussions with banks to raise $14bn to help buy more 5G airwaves. Johnson & Johnson will submit the phase 3 trial data for its Covid-19 vaccine to US regulators by January

21st. Its single-dose vaccine may not be authorized until March, weeks later than US officials havesuggested.

Facebook dropped after banning Trump from its platforms and suffered from the public outcry following thechange of WhatsApp privacy rules for 2 billion users, which prompted users to turn to app rivals. The update,previously set on February 8th, was finally postponed until May 15th.

Visa dropped its deal to buy fintech start-up Plaid for $5.3bn after the US DoJ sought to block the transactionon antitrust grounds.

Exxon dropped after the SEC launched an investigation after an employee filed a whistleblower complaintalleging that it overvalued a key asset in the Permian Basin, currently the highest-producing US oil field.

January 19, 2021 16

Next-Gen Leaders – Weekly Recap Equity Top News

The strategy had a negative performance and suffered from the high beta of its components.

Ubisoft jumped after Lucasfilm Games announced that it’s entering a partnership to create an open-world Star Wars game. The title will be developed by Ubisoft’s Massive Entertainment, marking the first timethat a company has produced a Star Wars game since Disney acquired Lucasfilm in 2012, ending nearlyeight years of exclusivity.

Cyberark rallied after some analysts forecasted a strong growth in security spending in 2021, as recent hackattacks have driven some companies to prioritize spending on detection, preventing and addressing cyber-security issues.

January 19, 2021 17

Conviction Portfolios

European Global LeadersUS Global LeadersJapan Global LeadersNext-Gen Leaders

January 19, 2021 18

European Global Leaders

January 19, 2021 19

Total Return performance on both the portfolio and the index. The full list of constituents is available on our website.

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European Global Leaders EuroStoxx 50 Total Return

European GL EuroStoxx 50 DeltaWeekly Performance -1.43% -1.21% -0.22%YtD Performance 1.23% 1.43% -0.20%1Y Volatility 29.0% 32.4% -3.3%

Perf.since inception 171.9% 120.2% 51.7%Annualized Perf. 16.1% 12.5% 3.6%

2020 -3.6% -2.6% -1.0%2019 32.1% 29.3% 2.8%2018 -6.9% -11.3% 4.4%

Volatility 16.5% 20.6% -4.1%Max Draw Down -36.1% -38.2% 2.1%Inception Date 31 Aug 2011

European Global Leaders

January 19, 2021 20

Weights within the portfolio are comprised between 2% and 5%

Name Ticker Exch Theme SectorMkt Cap

($bn)Country

Nestlé NESN SW Food and Household Products Consumer Staples 342.1 SwitzerlandRoche ROG SW Pharmaceuticals Health Care 297.4 SwitzerlandLVMH MC FP Luxury Goods Consumer Discretionary 258.1 FranceNovartis NOVN SW Pharmaceuticals Health Care 214.5 SwitzerlandSAP SAP GY Software Information Technology 192.9 GermanyL'Oréal OR FP Luxury Goods Consumer Staples 192.3 FranceNovo Nordisk NOVOB DC Pharmaceuticals Health Care 167.4 DenmarkASML ASML NA Semis Information Technology 167.4 NetherlandsUnilever NV UNA NA Food and Household Products Consumer Staples 165.2 BritainAstrazeneca AZN LN Pharmaceuticals Health Care 140.7 BritainEnel ENEL IM Green Transition Utilities 90.5 ItalyInditex ITX SM Apparel Consumer Discretionary 88.0 SpainKering KER FP Luxury Goods Consumer Discretionary 87.4 FranceVolkswagen VOW3 GY Automobiles Consumer Discretionary 84.7 GermanyIberdrola IBE SM Green Transition Utilities 82.2 SpainAllianz ALV GY Diversified Insurance Financials 81.1 GermanySchneider Electric SU FP Green Transition Industrials 72.9 FranceEssilorLuxottica EL FP Healthcare diversified Consumer Discretionary 59.9 FranceHeineken HEIA NA Food and Household Products Consumer Staples 53.7 NetherlandsVinci DG FP Infrastructure Industrials 53.2 FranceDassault Systemes DSY FP Software Information Technology 49.8 FrancePhilips PHIA NA MedTech Health Care 45.7 NetherlandsAXA CS FP Diversified Insurance Financials 43.5 FranceFerrari RACE IM Luxury Goods Consumer Discretionary 35.6 ItalyVivendi VIV FP Media & Entertainement Communication Services 34.9 FranceFresenius FRE GY Healthcare diversified Health Care 23.8 Germany

US Global Leaders

January 19, 2021 21


-200

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100120140160180200220240260280300320340360380

US Global Leaders S&P 500 Total Return

US GL S&P 500 DeltaWeekly Performance -2.04% -1.46% -0.58%YtD Performance -1.27% 0.39% -1.67%1Y Volatility 34.1% 34.7% -0.6%


2020 15.7% 18.4% -2.7%2019 35.7% 31.5% 4.2%2018 1.5% -4.4% 5.9%

Volatility 16.8% 17.1% -0.3%Max Draw Down -32.7% -33.8% 1.0%Inception Date 31 Aug 2011

US Global Leaders

January 19, 2021 22


Name Ticker Exch Theme SectorMkt Cap

($bn)Apple AAPL US Hardware Information Technology 2'035.5Microsoft MSFT US Software Information Technology 1'662.3Amazon AMZN US e-Commerce Consumer Discretionary 1'639.3Alphabet GOOGL US Internet Media Communication Services 1'068.2Facebook FB US Internet Media Communication Services 757.6Berkshire Hathaway BRK/B US Investment Company Financials 506.5Visa V US Payment Technology Information Technology 441.2WalMart WMT US Retail Consumer Staples 410.1Johnson & Johnson JNJ US Pharmaceuticals Health Care 389.9Procter & Gamble PG US HPC Consumer Staples 359.5Mastercard MA US Payment Technology Information Technology 339.8Adobe ADBE US Software Information Technology 241.2Verizon VZ US Telcos Communication Services 240.2Salesforce.com CRM US Software as a Service Information Technology 235.3Intel INTC US Semis Information Technology 230.3Walt Disney DIS US Media & Entertainement Communication Services 229.2Merck & Co MRK US Pharmaceuticals Health Care 201.9Nike NKE US Apparel Consumer Discretionary 200.9Pepsico PEP US Food and Household Products Consumer Staples 195.9McDonald's MCD US Restaurants Consumer Discretionary 170.7Costco COST US Retail Consumer Staples 168.3NextEra Energy NEE US Green Transition Utilities 149.6Medtronic MDT US MedTech Health Care 148.1Accenture ACN US IT Services Information Technology 146.6Bristol Myers BMY US Pharmaceuticals Health Care 138.0Starbucks SBUX US Restaurants Consumer Discretionary 103.5Xcel Energy XEL US Green Transition Utilities 38.4

Japanese Global Leaders

January 19, 2021 23


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Japan Global Leaders Topix Total Return

Japan GL Topix DeltaWeekly Performance -0.54% 0.09% -0.63%YtD Performance 0.87% 2.88% -2.00%1Y Volatility 23.6% 22.2% 1.5%


2020 23.8% 7.4% 16.4%2019 31.6% 18.1% 13.5%2018 -13.0% -16.0% 3.0%

Volatility 19.9% 17.2% 2.7%Max Draw Down -28.1% -32.2% 4.1%Inception Date 31 Aug 2017

Japanese Global Leaders

January 19, 2021 24


Name TickerExch Code

Theme SectorMkt Cap

($bn)

Toyota Motor 7203 JT Automobiles Consumer Discretionary 228.0Softbank Group 9984 JT Technology Conglomerate Communication Services 92.6Sony 6758 JT Consumer Electronics Consumer Discretionary 91.8Keyence 6861 JT Factory Automation Information Technology 86.8Recruit Holdings 6098 JT Human Resources Industrials 65.3Nintendo 7974 JT Video Games Communication Services 51.4Nidec 6594 JT Precision Motors Industrials 41.0Kao 4452 JT Household Products Consumer Staples 40.0Shiseido 4911 JT Cosmetics Consumer Staples 28.6Terumo 4543 JT Medical Devices Health Care 27.3Komatsu 6301 JT Construction Machinery Industrials 23.2

Next-Gen Leaders

January 19, 2021 25


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Next-Gen Leaders Nasdaq 100 Total Return

Next-Gen Nasdaq DeltaWeekly Performance -2.89% -2.30% -0.59%YtD Performance -1.21% -0.63% -0.58%1Y Volatility 36.1% 36.7% -0.6%


2020 52.5% 48.9% 3.6%2019 33.5% 39.5% -5.9%2018 6.9% 0.0% 6.9%

Volatility 26.3% 25.0% 1.3%Max Draw Down -32.9% -28.0% -4.9%Inception Date 31 Jul 2017

Next-Gen Leaders

January 19, 2021 26


Name TickerExch Code

Group Theme Category Sector Risk Category Mkt Cap

($bn)

Adobe ADBE US B2B Productivity Creativity & Design Information Technology Core 204.8Paypal PYPL US B2C FinTech Payment Technology Information Technology Core 196.3Salesforce.com CRM US B2B Productivity SaaS - Productivity Information Technology Core 163.6Servicenow NOW US B2B Productivity SaaS - Productivity Information Technology Core 75.1Stryker SYK US B2B Health Care Surgical Robot Health Care Core 65.6Intuitive Surgical ISRG US B2B Health Care Surgical Robot Health Care Core 64.1Activision Blizzard ATVI US B2C Media Video Games Communication Services Core 58.6Illumina ILMN US B2B Health Care Diagnostics Health Care Core 53.0Autodesk ADSK US B2B Productivity Creativity & Design Information Technology Core 50.5Square SQ US B2C FinTech Payment Technology Information Technology Speculative 45.7Dassault Systemes DSY FP B2B Productivity Creativity & Design Information Technology Core 45.0Workday WDAY US B2B Productivity SaaS - Productivity Information Technology Core 43.4Electronic Arts EA US B2C Media Video Games Communication Services Core 37.9Splunk SPLK US B2B Knowledge Data Analysis Information Technology Speculative 30.9Match Group MTCH US B2C Media Social Communication Services Speculative 29.1IHS Markit INFO US B2B Knowledge Research & Analytics Industrials Speculative 28.8CoStar Group CSGP US B2B Knowledge Information Industrials Core 27.2IQVIA IQV US B2B Knowledge Pharmaceutical Research Health Care Core 26.1Ansys ANSS US B2B Productivity Creativity & Design Information Technology Core 24.0Palo Alto Network PANW US B2B CyberSecurity Firewalls Information Technology Core 21.6Cap Gemini CAP FP B2B Knowledge Consulting Information Technology Core 19.3Coupa Software COUP US B2B Productivity SaaS - Productivity Information Technology Speculative 18.5Zalando ZAL GY B2C E-Commerce Retail Consumer Discretionary Speculative 17.8Take-Two Interactive TTWO US B2C Media Video Games Communication Services Core 15.9Trimble TRMB US B2B Productivity IoT Information Technology Core 10.7Gartner IT US B2B Knowledge Research & Analytics Information Technology Core 10.7Ubisoft UBI FP B2C Media Video Games Communication Services Speculative 9.7CyberArk Software CYBR US B2B CyberSecurity Priviledged Access Information Technology Speculative 3.6

Contacts

Capital Union Bank Ltd.CUB Financial Center, Lyford CayP.O. Box AP 59223Nassau, Bahamas [email protected]

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http://www.unionsecurities.ch/

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equity market review - capital union bank · 2021. 1. 19. · key dates in 2021. january 19, 2021...

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