Nasdaq DW Global Momentum Q1 2023 commentary

SaxoSelect Commentaries
Instruments tradedStocks
Asset classesGlobal equities (including emerging markets, excluding US companies)
Investment style Systematic investing based on stocks’ relative strength
Quarterly return1.38% (net of fees)
Annualised volatility (since inception)22% 

Market overview

Global equity markets advanced in the first quarter of 2023.  The Nasdaq DW Global Momentum strategy had positive returns for the quarter, helped in large part from the strong performance in January.  The biggest theme in the global equity markets in the first quarter was the favourable returns of the Technology sector, after that sector had been a laggard in 2022.  There has also been continued moderation in inflation in the first three months of the year, which is a welcome sign after inflation reached many decade highs in 2022.  The market is expecting that central banks around the world may be able to take a less aggressive approach to monetary policy as a result of these encouraging signs on the inflation front.

From a sector perspective, the largest exposure is currently to Technology (18%), Financials (15%), and Industrials (14%).  There were some significant changes in sector exposure over the course of the quarter.  Technology exposure increased 10% over the course of the quarter, while Financials exposure declined 9% for the quarter.

From a country perspective, the largest exposure is currently to China (19%), United Kingdom (11%), and Mexico (8%).

Regional exposure is currently tilted towards Europe (44%) and Asia (27%).  This strategy is not constrained geographically, so the exposure will change over time.  There is currently about 55% of the portfolio allocated to developed markets and 45% to emerging markets.  The emerging market exposure increased approximately 5% over the course of the quarter.


Portfolio performance (net of fees)


Top 10 portfolio holdings (as of 31/03/2023) 

Novo Nordisk
Tenaris S.A.
UBS Group AG
ABB Ltd.
BAE Systems plc
America Movil SAB de CV Class L
Mitsubishi UFJ Financial Group Inc.

Best-performing positions (note that the position may not have been held for the full quarter, but performance shown for the security is for the full quarter)

  • (+50.54%) STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures and sells semiconductor products in Europe, the Middle East, Africa, the Americas and Asia Pacific. STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Geneva, Switzerland.
  • (+37.36%) iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc

  • (+30.63%) CRH plc, through its subsidiaries, manufactures and distributes building materials in Ireland and internationally. CRH plc was founded in 1936 and is headquartered in Dublin, Ireland.

  • (+27.94%) POSCO Holdings Inc., together with its subsidiaries, manufactures and sells iron and steel rolled products in South Korea and internationally. POSCO Holdings Inc. was incorporated in 1968 and is headquartered in Pohang, South Korea.

  • (+27.11%) ASE Technology Holding Co., Ltd., together with its subsidiaries, provides a range of semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, the rest of Asia, Europe, and internationally. ASE Technology Holding Co., Ltd. was incorporated in 1984 and is headquartered in Kaohsiung, Taiwan.

Worst-performing positions (note that the position may not have been held for the full quarter, but performance shown for the security is for the full quarter)

  • (-19.17%) Tenaris S.A., together with its subsidiaries, produces and sells seamless and welded steel tubular products and related services for the oil and gas industry, and other industrial applications. Tenaris S.A. was founded in 2001 and is based in Luxembourg
  • (-14.68%) Aegon N.V. provides insurance, pensions, retirement and asset management services in the Americas, the Netherlands, the United Kingdom, and internationally.  The company was founded in 1844 and is headquartered in The Hague, the Netherlands

  • (-6.93%) PDD Holdings Inc. operates as a commerce company. It owns and operates a portfolio of businesses, including Pinduoduo, a social commerce platform primarily for agriculture in China; and Temu, an online marketplace. PDD Holdings Inc. was incorporated in 2015 and is based in Dublin, Ireland.

  • (-5.86%) Gerdau S.A., together with its subsidiaries, operates as a steel producer company. The company was founded in 1901 and is based in São Paulo, Brazil.

  • (-4.20%) Mitsubishi UFJ Financial Group, Inc. operates as the bank holding company for MUFG Bank, Ltd. that provides various financial services in Japan, the United States, Europe, Asia/Oceania, and internationally. Mitsubishi UFJ Financial Group, Inc. was founded in 1880 and is headquartered in Tokyo, Japan.


After sharp declines in the global equity markets in 2022, there were encouraging signs of recovery in the first quarter of 2023.  Given the trend-following nature of the Nasdaq DW Global Momentum Portfolio, there was some relative underperformance in the first quarter as Technology came back into favour, but after a period of above-average turnover in holdings, we may see more stable market leadership as the year develops.


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