• Home
      • Shareholder Account Access
      • Open An Account
      • Advisor Access
      • Advisor Dashboard
    • About
      • Our Story
      • Our Screens
      • Our Team
      • Our Community
      • Our Timeline
      • Contact Us
    • Funds
      • Request Information
      • Prospectus & Reports
      • Application Packets
      • Fund Summaries
      • Fund Managers
      • Performance
      • Type of Accounts
    • ETFs
      • Prospectus & Reports
      • US Large Cap Core ETF
      • High Dividend Stock ETF
      • International ETF
      • US Small Cap Core ETF
    • Resources
      • Literature
      • Investor Reports
      • FAQ
    • Blog
  • Home
    • Shareholder Account Access
    • Open An Account
    • Advisor Access
    • Advisor Dashboard
  • About
    • Our Story
    • Our Screens
    • Our Team
    • Our Community
    • Our Timeline
    • Contact Us
  • Funds
    • Request Information
    • Prospectus & Reports
    • Application Packets
    • Fund Summaries
    • Fund Managers
    • Performance
    • Type of Accounts
  • ETFs
    • Prospectus & Reports
    • US Large Cap Core ETF
    • High Dividend Stock ETF
    • International ETF
    • US Small Cap Core ETF
  • Resources
    • Literature
    • Investor Reports
    • FAQ
  • Blog

International Fund 2Q20

September 15, 2020

Market Backdrop

International equity investors were rewarded with a sharp rebound in stock prices during Q2 2020 as they looked beyond historically negative economic data in anticipation of a partial reopening of the global economy and progress on a vaccine.  Improving sentiment led by FOMO (Fear of Missing Out) and less defensive positioning overshadowed skepticism about a V-shaped recovery and warnings from public health experts about a second wave of infections.  Markets also shrugged off U.S./China tensions including the Senate passage of the Holding Foreign Companies Accountable Act, which requires foreign companies to provide financial transparency.  Chinese stocks who fail to comply could be delisted from major U.S. exchanges. By quarter-end, returns moderated due to overbought conditions and concern about new virus cases threatening the economic recovery.

To promote economic growth, developed market policy makers made further stimulus announcements which in total, dwarf the level of support provided during the 2008 Global Financial Crisis. In late May, the European Commission unveiled a €750B pandemic recovery plan, which was followed by bond buying programs by the ECB and the Bank of England. Of greatest surprise, however, was the kiss and make up between Germany and France for a pandemic rescue deal, a sign of a coordinated effort to lead the EU out of the biggest recession in 63 years.  Angela Merkel led the way with the announcement of a €130B package to promote growth on more than 50 initiatives.  Merkel also buried her grievances with French premier Emmanuel Macron to produce €500bn of grants (known as the Recovery Fund) for hard-pressed businesses across the EU, despite fierce opposition from countries known as the frugal four”– the Netherlands, Sweden, Denmark and Austria.  A final compromise should be resolved by the end of July and likely mark an inflection point for Europe as investors take advantage of the improving outlook.  The European Central Bank also stirred the pot with a generous increase in lending to sovereign nations and the banking sector, joining the U.S. Federal Reserve, the Bank of Japan and the Bank of England in making sure the cost of borrowing remains at all-time lows for years to come. China also continued stimulus measures with a variety of rate cuts, and increased lending facilities to commercial banks.  They also asked banks to cap interest rates on loans to selected firms.

Performance and Attribution

The Timothy Plan International Fund bounced back strongly in absolute terms and had one of its best relative return quarters in the history of the Fund versus the benchmark index.  Allocation was fairly neutral while stock selection provided all of the alpha.  Selection was positive in 9 out of 10 sectors represented in the Fund.  Stock selection was led by great selection in the Industrials and Consumer Discretionary sectors followed by the Financials, IT, and Communications Services sectors.  Individual stocks leading the way for the Fund in the quarter included Techtronic Industries (Hong Kong-Industrials), ASML Holdings (Netherlands-IT), Deutsche Boerse (Germany-Financials).  From a country standpoint, the Fund had its best selection in the quarter in the UK, China, and Hong Kong.

Outlook

The market dislocation during the first quarter has given our team the opportunity to evaluate attractive companies in various sectors where long-term structural growth stories with solid fundamentals now have compelling valuations. Although we did not expect the market to bounce back as quickly as it did, our focus on high quality, structural growth stories was quite fruitful for the quarter as the Fund outperformed handily. We expect a choppier 2nd half on a plethora of unknowns but expect investors to more and more look through to 2021as the year progresses.  The European Recovery Plan is a game changer for continued integration and debt unification there while renewed USD weakness is a tailwind to international stock returns.

Post Views: 88
Please follow and like us:
Facebook
Twitter
LinkedIn
Share

International  / Manager Commentary

  • Recent Posts

    • A Businessman Who Really Did Give it All Over to God
      September 28, 2022
    • A 'Screwtape' Approach to Keeping Christians from Biblically Responsible Investing
      September 21, 2022
    • Both Inflation and Inaction Are Unbiblical
      September 14, 2022
    • Misunderstood in the Neighborhood
      August 18, 2022
    • Billy Graham was the inspiration for the new Biblegraph
      August 9, 2022
  • Categories

  • Instagram

    2023 and Always... “And he who was seated on the 2023 and Always... “And he who was seated on the throne said, “Behold, I am making all things new.” Also he said, 'Write this down, for these words are trustworthy and true. '” As Christians, we can trust that the God will keep His promise. - Revelation 21:5
    From our Family to yours, we wish you a Merry Chri From our Family to yours, we wish you a Merry Christmas! May your families be blessed and may the light of the Lord shine upon you for all to see!
    From our Family to yours, we wish you a Merry Chri From our Family to yours, we wish you a Merry Christmas! 
www.timothyplan.com

Therefore the Lord himself will give you a sign. Behold, the virgin shall conceive and bear a son, and shall call his name Immanuel. - Isaiah 7:14
    It is time for a giveaway! How would you like a FR It is time for a giveaway! How would you like a FREE Biblegraph of your very own? Follow these steps:
http://ow.ly/eWyS50KnlpK

In honor of the life and inspiration of Billy Graham, we want to give you this useful Biblegraph to use with your family, friends, church or Bible Study

*Comment below with your favorite scripture.
* Like and Share this post with friends and family
Visit the link at the top of the post and request to have a Biblegraph of your very own sent to you absolutely free of charge. 
From our family, to yours! 😀😀😀😀

#giveaway #free #homeschooling #followforfollow #instamood #fun #instagram #picoftheday #happy #photooftheday #christianmoms #christianwoman #christianman #biblebeliever #jesusfollower #billygraham #inspirational #motivational #wisdom #curriculumn #reading #bible #biblegraph #family #journey #travel #christianity #theology #quotes #scripture
    BILLY GRAHAM WAS THE INSPIRATION FOR THE NEW BIBLE BILLY GRAHAM WAS THE INSPIRATION FOR THE NEW BIBLEGRAPH - https://blog.timothyplan.com/2022/08/billy-graham-inspired-hope-biblegraph/
    " I would unite with anybody to do right and with " I would unite with anybody to do right and with nobody to do wrong."- Frederick Douglas
    "The King's heart is like channels of water in the "The King's heart is like channels of water in the hand's of the Lord. He turns it where ever He wishes."- Proverbs 21:1
    "Believe you can and you're halfway there." - Tedd "Believe you can and you're halfway there." - Teddy Roosevelt
    "Make each day your masterpiece."- Coach John Wood "Make each day your masterpiece."- Coach John Wooden
    Load More... Follow on Instagram


  • Biblically Responsible Investing

    Investing involves risk, including the potential loss of principal.

    Before investing, carefully consider the fund’s investment objectives, risks, charges, and expenses of the investment company. This and other important information can be found in the fund’s prospectus. To obtain a copy, visit TIMOTHYPLAN.COM or call 800.846.7526. Read each prospectus carefully before investing.

    Because the Timothy Plan Funds do not invest in excluded securities, the Funds may be riskier than other funds that invest in a broader array of securities. There are risks when a fund limits its investments to particular sized companies, and all companies are subject to market risk. The Fund recently experienced significant negative short-term performance due to market volatility associated with the Covid-19 pandemic.

    MUTUAL FUND INVESTOR

    To read more about our mutual funds, please click this link to access fund information, including the prospectus, fact sheets, performance, and holdings for each fund.A prospectus is available from the Fund or your financial professional that contains more complete, important information. Please read it carefully before investing. Mutual Funds distributed by Timothy Partners, Ltd. Member FINRA.

    HEADQUARTERS: 1055 Maitland Center Commons, Maitland, FL
    (800) 846-7526  |   Send an email  |   View our map
    MUTUAL FUND SHAREHOLDER SERVICES: c/o Ultimus Fund Solutions, Post Office Box 541150, Omaha, NE 68154-1150
    (800) 662-0201  |   Account Access

    ETF INVESTOR

    To read more about our ETFs, please click this link to access fund information, including fact sheets, performance and holdings for each fund. A prospectus is available from the Fund or your financial professional that contains more complete, important information. Please read it carefully before investing. ETFs distributed by Foreside Fund Services, LLC, Member FINRA. Timothy Partners, Ltd. is not affiliated with Foreside Fund Services, LLC.

    ETF SHAREHOLDER SERVICES: Contact your financial advisor for information regarding your account.

© Copyright TIMOTHY PLAN. All rights reserved.