equity strategies

Europe YtD 19.49% vs 20.40% / -0.91% alpha

Weekly 0.75% vs 1.05% / -0.30% alpha

US YtD 17.36% vs 21.20% / -3.84% alpha

Weekly 1.13% vs 1.54% / -0.41% alpha

Next-Gen YtD 18.62% vs 20.31% / -1.69% alpha

Weekly 3.25% vs 2.26% / 0.99% alpha

Japan YtD 3.28% vs 8.08% / -4.80% alpha

Weekly 2.98% vs 2.56% / 0.42% alpha

Equity strategies

Equity Market Review : August 31, 2021

September 1, 2021 1

Publications UpdateRecent Publications

Exploring Fintech & Payments

Exploring Aerospace & Defense I: Civil Aerospace

Exploring Aerospace & Defense II: Defense Industry

A Look at Newly Listed Companies

Exploring Aerospace & Defense III: The Players

Last Week’s Highlights

Global Markets rose after Powell said the Fed could

begin a slow removal of the central bank’s crisis-era

stimulus measures only later this year.

The full approval by FDA of Moderna & Pfizer’s Covid-

19 vaccines continued to lift sentiment.

Markit July PMIs showed a slowing activity in Europe

and the US amid materials shortages, a lack of labor and

an upswing in coronavirus infections.

Upcoming Events

Earnings season continues (Costco, Broadcom, etc…)

Tuesday 31: EU CPI, Chinese PMI

Wednesday 1: US ADP Employment, US+EU

Manufacturing PMI

Friday 3: US Monthly Job Report, US Services PMI

Tuesday 7: EU GDP

Thursday 9: ECB meeting, Chinese CPI

Equity Portfolios Performance

Total return performances, As of Friday evening

See Market Dashboard See Calendar

See Performances See our Website

https://www.unionsecurities.ch/research/

Other

Date Day Company Time $ Mkt Cap

31-Aug Tuesday ER Crowdstrike Holdings Inc Aft-mkt 64$

1-Sep Wednesday ER Pernod Ricard SA 55$

1-Sep Wednesday SR Costco Wholesale Corp 22:15 199$

1-Sep Wednesday ER Veeva Systems Inc Aft-mkt 51$

2-Sep Thursday SR Ford Motor Co 53$

2-Sep Thursday ER DocuSign Inc Aft-mkt 59$

2-Sep Thursday ER Broadcom Inc Aft-mkt 203$

7-Sep Tuesday ER Partners Group Holding AG Bef-mkt 47$

8-Sep Wednesday ER Lululemon Athletica Inc 53$

10-Sep Friday ER Oracle Corp 249$

Date Day Event

31-Aug Tuesday 03:00 CH Composite PMI

31-Aug Tuesday 08:45 FR GDP QoQ

31-Aug Tuesday 11:00 EC CPI Core YoY

1-Sep Wednesday 03:45 CH Caixin China PMI Mfg

1-Sep Wednesday 10:00 EC Markit EU Manufacturing PMI

1-Sep Wednesday 14:15 US ADP Employment Change

1-Sep Wednesday 15:45 US Markit US Manufacturing PMI

1-Sep Wednesday 16:00 US ISM Manufacturing

1-Sep Wednesday 16:30 US DOE U.S. Crude Oil Inventories

2-Sep Thursday 14:30 US Initial Jobless Claims

2-Sep Thursday 14:30 US Trade Balance

3-Sep Friday 03:45 CH Caixin China PMI Services

3-Sep Friday 10:00 EC Markit EU Services PMI

3-Sep Friday 11:00 EC Retail Sales MoM

3-Sep Friday 14:30 US Unemployment Rate

3-Sep Friday 15:45 US Markit US Services PMI

3-Sep Friday 16:00 US ISM Services Index

7-Sep Tuesday 11:00 GE ZEW Survey Expectations

7-Sep Tuesday 11:00 EC GDP SA QoQ

7-Sep Tuesday /2021 CH Trade Balance

8-Sep Wednesday 01:50 JN GDP SA QoQ

8-Sep Wednesday 16:00 US JOLTS Job Openings

9-Sep Thursday 03:30 CH CPI YoY

9-Sep Thursday 13:45 EC ECB Main Refinancing Rate

9-Sep Thursday 14:30 US Initial Jobless Claims

9-Sep Thursday 17:00 US DOE U.S. Crude Oil Inventories

10-Sep Friday 08:00 GE CPI MoM

10-Sep Friday 08:00 UK Monthly GDP (MoM)

Main Events – August 24-September 3

September 1, 2021 2

Earnings Macro

Wednesday 1: OPEC+ meeting

Last

VIX - S&P 500 16.7 41.2 29-Oct-20 14.1 29-Jun-21

VOLQ - Nasdaq 100 14.1 44.5 4-Sep-20 13.9 27-Aug-21

V2X - EuroStoxx 50 17.6 39.9 28-Oct-20 15.1 11-Jun-21

12M Range

High Low

30 August 13:33

Last Week MtD YtD

US Equities S&P 500 1.5% 2.7% 21.2%

NASDAQ 100 2.3% 3.2% 20.3%

Global Equities MSCI World 1.8% 2.3% 18.0%

EuroStoxx 50 1.0% 2.5% 20.4%

Dax 0.3% 2.0% 15.5%

FTSE 100 0.9% 2.5% 13.7%

SMI 0.2% 2.7% 19.4%

Topix 2.6% 1.5% 8.1%

Emergings HSI. 2.4% -1.9% -4.7%

MSCI Emerging Markets 4.3% -0.2% 0.1%

Commodities CRB Index 5.9% 0.5% 30.6%

Gold 2.0% 0.2% -4.1%

WTI Crude Oil 10.3% -7.0% 41.7%

Dollar Index -0.9% 0.6% 3.1%

2021

Last Week MtD YtD

Information Technology 2.8% 7.1% 38.3%

Industrials 1.4% 2.8% 25.2%

Consumer Discretionary 1.6% -2.8% 17.4%

Energy 4.6% 3.5% 19.2%

Financials 1.2% 3.5% 22.3%

Communication Services 0.1% 4.6% 20.1%

Materials 2.4% 1.0% 24.4%

Consumer Staples -0.2% 0.4% 12.0%

Health Care -1.6% 4.1% 20.8%

Utilities -3.0% 3.2% 4.9%

Real Estate -1.1% 2.6% 14.2%

2021

Last Week MtD YtD

Information Technology 1.4% 3.0% 21.7%

Industrials 2.2% 1.5% 19.2%

Consumer Discretionary 2.6% 0.8% 11.7%

Energy 7.3% -0.2% 33.3%

Financials 3.5% 6.8% 33.5%

Communication Services 2.8% 3.9% 28.8%

Materials 2.6% 2.4% 19.6%

Consumer Staples -1.4% 0.7% 8.4%

Health Care -1.1% 1.9% 19.5%

Utilities -2.0% 3.9% 11.0%

Real Estate -0.3% 1.0% 30.3%

2021

Market Dashboard

September 1, 2021 3

US sectors Europe sectors

Equity & Macro indices Volatility

Weekly Comments

September 1, 2021 4

Weekly Recap

Market Review

US Markets rose (S&P 500 +1.54%) after Powell said the Fed could begin a slow removal of the central

bank’s crisis-era stimulus measures only later this year. The full approval by FDA of Moderna & Pfizer’s

Covid-19 vaccines continued to lift sentiment. These vaccines had previously only a emergency use

authorization given by the US drug agency.

Markit July PMIs showed a slowing activity in Europe and the US amid materials shortages, a lack of labor

and an upswing in coronavirus infections.

The SEC will demand that more than 250 Chinese companies trading in US markets better inform investors

about political and regulatory risks.

The Nasdaq was boosted (+2.26%) by Powell’s signal that pandemic-era Fed policy support will be

withdrawn cautiously and gradually.

EU Markets ended higher (EuroStoxx 50 +1.05%) despite the German Ifo index signaled economy’s loss of

momentum. European services outperformed manufacturing amid a pickup in hospitality industry.

September 1, 2021 5

European Global Leaders – Weekly Recap

Equity Top News

The strategy had a positive performance, but underperformed its benchmark.

Vivendi rose after Universal Music set out its financial goals ahead of its IPO. The music publisher is

targeting an Ebidta margin in the mid 20s and aims for high single-digit annual sales growth in the mid-term.

Semiconductor stocks, including ASML, jumped after JPMorgan’s analysts wrote that the sector could see

a boost as shortages slowly ease.

Royal Dutch Shell and TotalEnergies, rebounded with the oil price, as the resurgence of Covid-19

outbreaks may prompt OPEC+ to reassess its pledge to keep boosting output each month.

September 1, 2021 6

US Global Leaders – Weekly Recap

Equity Top News

The strategy had a positive performance, but underperformed its benchmark.

Energy stocks, including Chevron, rebounded with the oil price, as the resurgence of Covid-19 outbreaks

may prompt OPEC+ to reassess its pledge to keep boosting output each month.

Disney‘s ESPN is seeking to license its brand to major sports-betting companies for at least $3bn over

several years, according to Bloomberg.

Medtronic announced that Q2 revenue rose 23% YoY. It raised the low end of its guidance for FY as it

expects infections from the Delta variant to peak in the next few weeks, allowing people to go ahead soon

with non-urgent procedures that will boost demand for its devices. Medtronic also got FDA approval for its

self-expanding aortic valve replacement system.

Johnson & Johnson said that a second dose of its Covid-19 vaccine was found in a study to generate a

strong immune response, justifying a booster shot.

Intel rebounded after it announced new chips promising performance boosts of datacenters on its

Architecture Day event. It reassured analysts on its capacity to regain industry leadership.

Walmart is opening up its in-house delivery platform, Spark Driver, to other businesses. The service,

called Walmart GoLocal, offers another way for the retailer to beef up its delivery platform and add more

paying pickup and drop-offs while drivers are out.

ConocoPhillips rose after its affiliate Solaris Midstream, a water supplier for oil and gas fracking operations

in the US, filed SEC forms for an IPO valued at more than $1bn. ConocoPhillips has a 30% interest in it.

Merck slid, due to rising concerns of slowing sales for some of its drugs, along with the impact of the Covid-

19 pandemic on its vaccines, including Gardasil.

September 1, 2021 7

Next-Gen Leaders – Weekly Recap

Equity Top News

The strategy had a positive performance and benefited from the high beta of its components.

Our laggard stocks, mainly in the software industry, strongly rebounded after many companies’ FY

guidance have been raised. They have continued their bet on cloud computing for business applications and

recently signed many contracts using cloud and SaaS services.

Palo Alto soared after forecasting quarterly revenue that beat estimates amid an increased focus on remote

work and cybersecurity. CEO also said that the company is not looking for substantive acquisitions.

Workday jumped after posted better-than-expected results for Q2 and raised its full year 2022 guidance.

Salesforce reported a boost in quarterly sales and again lifted its FY outlook. Revenue was up 23% YoY, as

the spread of the more infectious Delta variant has only reinforced the adoption of digital tools.

Splunk’s Q2 revenue beat the average estimate. It also raised its Q3 recurring sales target, higher-than-

expected.

Catalent is expected to announce that it has agreed to buy closely held Bettera for $1bn, the latest deal

involving nutritional supplement companies.

Illumina slid as US antitrust officials said they seek to unwind its $1.7bn acquisition of cancer test-detection

company Grail, alleging it would harm innovation and boost prices. The trial is expected to last until October.

Autodesk plunged after it roughly met analysts’ sales estimates for the last quarter but fell short of

expectations for its next quarter earnings guidance. It said that it is continuing to shift more of its customers

from multiyear paid up front to annual billings.

September 1, 2021 8

Portfolios – Performance and Constituents

European Global Leaders

US Global Leaders

Japan Global Leaders

Next-Gen Leaders

September 1, 2021 9

YtD 19.49% vs 20.40% / -0.91% alpha YtD 17.36% vs 21.20% / -3.84% alpha

Weekly 0.75% vs 1.05% / -0.30% alpha Weekly 1.13% vs 1.54% / -0.41% alpha

2020 -3.63% vs -2.58% / -1.05% alpha 2020 15.68% vs 18.39% / -2.71% alpha

2019 32.10% vs 29.34% / 2.76% alpha 2019 35.66% vs 31.49% / 4.17% alpha

2018 -6.90% vs -11.26% / 4.36% alpha 2018 1.48% vs -4.39% / 5.86% alpha

Since Inception 220.73% vs 161.42% / 59.31% alpha Since Inception 415.77% vs 352.57% / 63.20% alpha

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

YtD 3.28% vs 8.08% / -4.80% alpha YtD 18.62% vs 20.31% / -1.69% alpha

Weekly 2.98% vs 2.56% / 0.42% alpha Weekly 3.25% vs 2.26% / 0.99% alpha

2020 23.83% vs 7.39% / 16.44% alpha 2020 52.51% vs 48.88% / 3.63% alpha

2019 31.59% vs 18.10% / 13.49% alpha 2019 33.55% vs 39.46% / -5.91% alpha

2018 -12.99% vs -16.04% / 3.05% alpha 2018 6.92% vs 0.01% / 6.91% alpha

Since Inception 67.31% vs 30.64% / 36.67% alpha Since Inception 196.27% vs 173.07% / 23.20% alpha

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

European Global Leaders US Global Leaders

Japanese Global Leaders Next-Gen Leaders

Strategies – Performance Recap

September 1, 2021 10

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

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.

European Global Leaders


Total Return performance on both the portfolio and the index.

The full list of constituents is available on our website.

European GL EuroStoxx 50 Delta

YtD Performance 19.49% 20.40% -0.91%

1Y Volatility 15.0% 16.7% -1.7%

Perf.since inception 218.0% 161.0% 57.0%

Annualized Perf. 17.6% 14.4% 3.2%

2020 -3.6% -2.6% -1.0%

2019 32.1% 29.3% 2.8%

2018 -6.9% -11.3% 4.4%

Volatility 16.3% 20.3% -4.0%

Max Draw Down -36.1% -38.2% 2.1%

Inception Date 31 Aug 2011

US Global Leaders




US GL S&P 500 Delta

YtD Performance 17.36% 21.20% -3.84%

1Y Volatility 14.2% 15.0% -0.8%



2020 15.7% 18.4% -2.7%

2019 35.7% 31.5% 4.2%

2018 1.5% -4.4% 5.9%

Volatility 16.6% 16.9% -0.3%

Max Draw Down -32.7% -33.8% 1.0%


Japanese Global Leaders




Japan GL Topix Delta

YtD Performance 3.28% 8.08% -4.80%

1Y Volatility 17.5% 15.1% 2.4%



2020 23.8% 7.4% 16.4%

2019 31.6% 18.1% 13.5%

2018 -13.0% -16.0% 3.0%

Volatility 19.7% 17.0% 2.8%

Max Draw Down -28.1% -32.2% 4.1%


Next-Gen Leaders




Next-Gen Nasdaq Delta

YtD Performance 18.62% 20.31% -1.69%

1Y Volatility 21.4% 21.7% -0.3%



2020 52.5% 48.9% 3.6%

2019 33.5% 39.5% -5.9%

2018 6.9% 0.0% 6.9%

Volatility 25.3% 24.2% 1.1%

Max Draw Down -32.9% -28.0% -4.9%

Inception Date 31 Jul 2017

Contacts


CONTACT US

Union Securities Switzerland S.A.

Address11 Cours de Rive

1204 Geneva, Switzerland

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www.unionsecurities.ch

Union Securities Switzerland SA is a FINMA-registered Securities Dealer.

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