Franklin Mutual Beacon Fund Q2 2024 Commentary

seekingalpha08-21

Global equities saw gains in Q2 2024, driven by enthusiasm for AI and economic optimism, but faced pressure from June political developments in Europe.Key performance drivers included Global Payments ...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFranklin Mutual Beacon Fund Q2 2024 Commentary\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-21 17:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4716130-franklin-mutual-beacon-fund-q2-2024-commentary><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Global equities saw gains in Q2 2024, driven by enthusiasm for AI and economic optimism, but faced pressure from June political developments in Europe.Key performance drivers included Global Payments ...</p>\n\n<a href=\"https://seekingalpha.com/article/4716130-franklin-mutual-beacon-fund-q2-2024-commentary\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"DBSDF","symbol_name":"DBS Group Holdings Ltd.","start_time":0,"source_url":"https://seekingalpha.com/article/4716130-franklin-mutual-beacon-fund-q2-2024-commentary","article_id":"2461843242","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1294358890/image_1294358890.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2461843242","pubTimestamp":1724234100,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Click to enlarge Global Payments was a notable detractor. While recent quarterly results were in line with estimates, the stock fell on weak free cash flow conversion and concerns about share losses that could impact the terminal value of the business, in our view. European airplane manufacturer Airbus  detracted from relative results after it warned that engine supply chain disruptions were limiting the number of airplanes it could deliver over the next couple of years, resulting in lower-than-anticipated earnings before interest and taxes. Airbus also took a significant charge related to its space systems business. Singapore-based bank DBS Group  aided relative results. The company reported strong earnings for its latest quarter, with trading and investment banking performing better than anticipated. DBS also expects net interest income to be modestly higher for the year due to fewer expected rate cuts. Better fee momentum has also been a positive. Outlook & Strategy The US economic ","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"DBSDF":"DBS Group Holdings Ltd.","LU0577902298.EUR":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (EUR) ACC","LU0205439572.USD":"富达亚太股息基金","DIS":"迪士尼","LU0326948709.USD":"SCHRODER ISF ASIAN TOTAL RETURN \"A\" (USD) ACC","LU0577902538.SGD":"Fullerton Lux Funds - Asia Growth and Income Equities A Acc SGD","LU0831093199.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AM3\" (SGDHDG) INC","SG9999000343.SGD":"Schroder Singapore Trust A Dis SGD","LU0672654166.SGD":"FTIF - Templeton Asian Growth A (acc) SGD-H1","LU1956131251.USD":"BNP PARIBAS SUSTAINABLE ASIA EX-JAPAN EQUITY \"C\"MD (USD) INC","LU0577902454.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (USD) ACC","LU0011963245.USD":"abrdn SICAV I ASIA PACIFIC SUSTAINAB  LE EQUITY \"A\" (USD) ACC","LU0950375773.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) INC A","BK6516":"银行与投资服务概念","LU0251143029.SGD":"Fidelity ASEAN A-SGD","LU0096374516.USD":"CT (LUX) I ASIA EQUITY INCOME \"DU\" (USD) ACC","LU0048597586.USD":"富达亚洲焦点A","BK6523":"ESG概念","LU0261947096.USD":"FIDELITY FUNDS  SUSTAINABLE ASIA EQUITY \"A\" (USD) ACC","LU0061477393.USD":"CT (LUX) I ASIA EQUITY INCOME \"AU\" (USD) ACC","FELE":"富兰克林电子","LU0823397103.USD":"BNP PARIBAS SUSTAINABLE ASIA EX-JAPAN EQUITY \"C\" (USD) ACC","LU2257852520.SGD":"JPMorgan Funds - Asia Growth A (acc) SGD","BK4161":"工业机械","LU0048573645.USD":"富达东盟基金","LU0823417653.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) ACC","LU0128522157.USD":"TEMPLETON ASIAN GROWTH \"A\" ACC","LU0488056044.USD":"Allianz Asian Multi Income Plus Cl AM DIS USD","LU0084288322.USD":"Natixis Asia Equity RD USD","LU0384037296.USD":"ALLIANZ ASIAN MULTI INCOME PLUS \"AT\" (USD) ACC","LU0831103253.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD","LU0955669360.SGD":"Schroder ISF Asian Dividend Maximiser A Dis SGD","LU0823397285.USD":"BNP PARIBAS SUSTAINABLE ASIA EX-JAPAN EQUITY \"C\" (USD) INC","LU0210637038.USD":"HSBC GIF THAI EQUITY \"AD\" INC","LU0823417737.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) INC","LU1282649810.SGD":"Allianz Asian Multi Income Plus Cl AMg DIS H2-SGD","LU0762540952.USD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AC\" (USD) ACC","LU0737861269.HKD":"FIDELITY ASEAN \"A \" (HKD) ACC","LU0955623706.USD":"SCHRODER ISF ASIAN DIVIDEND MAX \"A\" (USD) ACC","LU0955648018.USD":"SCHRODER ISF ASIAN DIVIDEND MAX \"A\" (USD) INC MF","LU1130305938.SGD":"Schroder ISF Asian Dividend Maximiser A Dis SGD-H","LU0029875118.USD":"TEMPLETON ASIAN GROWTH \"A\" INC","LU1504937902.USD":"CT (LUX) I ASIAN EQUITY INCOME \"DUP\" (EUR) INC","LU0251144936.SGD":"Fidelity Sustainable Asia Equity A-SGD","LU0235996351.USD":"UBS (LUX) KEY SELECTION SICAV - ASIAN EQUITY (USD) \"P\" (USD) ACC","LU0898667661.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD-H","LU0577902611.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"A\" (USD) ACC","LU2089279066.USD":"ALLIANZ GLOBAL WATER \"AT\" (USD) ACC","LU0577902371.SGD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (SGD) ACC","LU0886674414.USD":"CT (LUX) I ASIAN EQUITY INCOME \"AUP\" (USD) INC"},"translate_title":"富兰克林共同灯塔基金2024年第二季度评论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DBSDF":1,"FELE":1,"DIS":0.6},"content_text":"Global equities saw gains in Q2 2024, driven by enthusiasm for AI and economic optimism, but faced pressure from June political developments in Europe.Key performance drivers included Global Payments detracting due to weak free cash flow, Airbus warning of disruptions, and DBS Group reporting strong earnings.Outlook includes US economic normalization, stabilization in Europe, and weak demand in China. Opportunities seen in infrastructure, data centers, and energy generation. Geopolitical risks and election uncertainty noted.   Aerial_Views/E+ via Getty Images Performance Review Enthusiasm about artificial intelligence ('AI') helped drive collective gains in global equities, as measured by the MSCI World Index, during the second quarter of 2024, particularly in the United States. Renewed optimism about an economic soft landing in many regions, an interest-rate cut in the eurozone, and investor expectations for potential rate cuts in the United Kingdom and the United States during the second half of this year also aided investor sentiment. June political developments in Europe, however, pressured results in that region. Global value stocks fared worse than global growth stocks during the quarter. Quarterly Key Performance Drivers     Stocks Sectors Countries   HELPED DBS Group Holdings Ltd. Consumer Discretionary (Stock Selection) Switzerland (Stock Selection)   Shell PLC Health Care (Stock Selection) Singapore (Stock Selection)   Gen Digital Inc. Materials (Stock Selection) Germany (Stock Selection)   HURT Global Payments Inc. Industrials (Stock Selection) United States (Stock Selection)   Airbus SE Financials (Stock Selection) France (Stock Selection)   Walt Disney Co. Consumer Staples (Stock Selection) United Kingdom (Stock Selection)  \nClick to enlarge Global Payments was a notable detractor. While recent quarterly results were in line with estimates, the stock fell on weak free cash flow conversion and concerns about share losses that could impact the terminal value of the business, in our view. European airplane manufacturer Airbus (OTCPK:EADSF) detracted from relative results after it warned that engine supply chain disruptions were limiting the number of airplanes it could deliver over the next couple of years, resulting in lower-than-anticipated earnings before interest and taxes. Airbus also took a significant charge related to its space systems business. Singapore-based bank DBS Group (OTCPK:DBSDF) aided relative results. The company reported strong earnings for its latest quarter, with trading and investment banking performing better than anticipated. DBS also expects net interest income to be modestly higher for the year due to fewer expected rate cuts. Better fee momentum has also been a positive. Outlook & Strategy The US economic climate continues to normalize as we move out of the post-COVID era. Low unemployment and easing inflation remain consistent and the economic outlook is decent, although prices are elevated compared to prior years, weighing on pockets of consumer spending. Meanwhile in Europe, the economic picture has stabilized. Energy prices have normalized, and inflation has eased, reducing pressure on the consumer. However, areas of weakness persist, as evidenced by the HCOB Eurozone Manufacturing PMI® June reading, which fell month-over-month at the fastest pace so far this year. In China, weak demand is weighing on the economy, and ongoing real estate difficulties are eroding both investor sentiment and the growth outlook. Spending on infrastructure fortification, data center buildouts to support AI development, and energy generation and delivery systems will be positive for the economy and value investors, in our view. Our team is working to identify opportunities to invest in undervalued companies with the future potential to benefit from these trends, while avoiding stocks that appear overvalued relative to their likely future earnings. Outside of the United States, Europe and Japan have their own initiatives which we expect will support demand for construction materials, metals and other industrial goods and services in those regions as well. Interest rate normalization is helpful for value stocks. The US Federal Reserve (Fed) is monitoring relevant data to inform its decisions. In Europe, the European Central Bank (ECB) made its first rate cut in June. Meanwhile, the Bank of Japan (BoJ) held rates steady at its June meeting, stating that it will continue to monitor relevant data to inform future rate movements, including a potential increase at its July meeting. We believe that the BoJ will gradually normalize monetary policy over the next couple of years, assuming positive inflation and economic growth persist. Regardless of the timing of future rate movements, we expect interest rates to remain relatively range bound over the near term and think the investment implications of normalized rate policy will continue to influence the financial system, affecting companies’ capital allocation decisions. While we believe there are reasons to be optimistic about the markets, and we continue to find ample attractive investment opportunities globally, we think geopolitical risk and the uncertainty surrounding upcoming elections could be a destabilizing factor. The base case, which is a continuation of moderate, pro-growth policies, is no longer assured. A wider range of potential election outcomes means we will be aware that the investment landscape of several large economic powers could potentially change very rapidly. We are prepared for the range of potential outcomes and the investment implications. We remain focused on identifying opportunities to acquire stocks at attractive valuations based upon our assessment of fundamental value. Our process of finding underappreciated and misunderstood companies with identifiable catalysts to unlock shareholder value may provide meaningful upside potential and possible downside risk management during turbulent periods. In addition, we continue to focus on event-driven situations across equity and fixed income with catalysts less correlated to the overall markets. While unnerving, volatility remains an inherent part of investing in risk assets, and the market historically rewards investors who take an opportunistic long-term perspective.  Original Post Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2461843242"}