The stock market in the first half of 2020 was devastated by the spread of the new coronavirus infection. Investment professionals who managed mutual funds were also busy responding to unprecedented situations. How did the most powerful fund replace the incorporated stock in half a year? "Before and After" was verified based on the monthly report.
Goldman Sachs Asset Management's "netWIN GS Technology Equity Fund" (A course: 3531199B, B course: 3531299B) will be discussed. It is a fund that invests in stocks of U.S. companies that benefit from the development of technology, and was established in November 1999 and is a long-lived fund with more than 20 years of investment.
High prices set in July, high-end stocks are almost unchanged
As of the end of June, the year-to-date return (on a distribution reinvestment basis) was positive, with 14.0% for A courses with foreign exchange hedges and 12.7% for B courses without hedging. Both base value rose more than 40 percent from the year-to-date lows set on March 17. In July, each of them updated their set highs, and after corona shock, they were rather increasing their returns.
The top brands incorporating "Netwin" have hardly changed since six months ago. Compared to the top 10 stocks as of the end of June 2008 as of the end of December 19, only one new one was added. PayPal Holdings (3.9%, PYPL), an online payment service.
Microsoft (9.2%, MSFT) ranked first in the incorporation ratio as it was six months ago. Apple (8.3%, AAPL) came in second, and Google's parent company Alphabet (8.0%, GOOG) was in second place, along with the world's top market capitalization IT (information and communications) giants. The ratio of each sector was almost unchanged, and while the ratio of information technology and communications services was slightly increased, general consumer goods, services, and real estate were reduced.
The development of technology accelerates beyond expectations.
According to an extraordinary report dated June 18, "business and lifestyles are expected to change significantly, and the related technology industries are expected to grow over the long term due to changes in social structure." In response to the spread of the new coronavirus infection, it is expected that the development of technology will accelerate more than previously expected.
Three high-growth sectors were e-commerce, digital payments, cloud infrastructure, and software-as-a-service (SaaS), a software-as-a-service software service provided via the cloud. Specific related stocks include Amazon.com (AMZN), Microsoft, and Alphabet.
The latest monthly report (as of June 30) maintains a bullish view of the top incorporated stocks. As for Amazon, he pointed out that "e-commerce business benefits" from restrictions on going out in Corona. Microsoft's software and cloud services also said that "continued remote work will increase demand."