At a sector level, artificial intelligence (AI) drove technology companies higher, although some of the current excitement, optimism and valuations appear excessive. Commodity prices declined across the board.
Emerging markets slightly underperformed developed ones on the back of disappointing economic data from China. Despite encouraging AI-related trends driving demand for chips, there is growing evidence of tighter monetary policy affecting consumer confidence and demand for goods and services. As a result, the month was characterised by a degree of de-risking, which was also evidenced by weak returns from economically sensitive commodities such as iron ore and crude oil.
Estee Lauder weakness offset Google strength as global equities moved sideways. SKAGEN Global added 1.52% during the month, lagging the MSCI All Country World Index which climbed 2.45%. Read the SKAGEN Global May 2023 report for more information.
Chinese holdings drove relative weakness as EMs underperformed DMs on weak China data. SKAGEN Kon-Tiki was up 0.84% during the month, trailing the MSCI Emerging Markets Index which was 1.82% higher. Read the SKAGEN Kon-Tiki May 2023 report for more information.
LOG lead relative gains as higher interest rates weighed on global real estate markets. SKAGEN m² fell 0.46% over the month, outperforming the MSCI All Country World Index Real Estate IMI benchmark which dropped 1.73%. Read the SKAGEN m² May 2023 report for more information.
Panasonic gains were offset by CCS weakness as LG Household & Healthcare entered the portfolio. SKAGEN Focus fell 1.10% during the month, lagging the MSCI All Country World Index which added 2.45%. Read the SKAGEN Focus May 2023 report for more information.