Ecommerce Fund’s first quarter: a picture of strength
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Ecommerce Fund’s first quarter: a picture of strength

The first quarter of 2017 has seen Ecommerce Fund extend its phenomenal performance into another year. The Fund’s investment thesis is simple: to gain exposure to the best, and most attractively valued, companies operating within the Ecommerce sector. This means it invests in both the companies that one would expect (Amazon, Visa and MasterCard, eBay) as well as companies you may not necessarily think of as ecommerce. Video game developer Electronic Arts, for example, is a pioneer of digital delivery, putting it squarely within Ecommerce Fund’s investable universe.

Ecommerce’s phenomenal year-to-date

ecom ytd1605

SOURCE: Source: Dominion-funds.com

The companies within Ecommerce Fund’s portfolio have vastly outperformed the market, and they have also beaten analysts’ expectations. On average, these companies have beaten consensus estimates by1% on sales and 9% on profits during the first three months of 2017.

A selection of Ecommerce Fund’s holdings, year-to-date performance

slct ecom

SOURCE: Yahoo Finance

This incredible performance is nothing new to Ecommerce Fund’s investors. Just two weeks ago, we reported that the Fund has appreciated by 52% (as at 03/05/2017) over its not-quite three-year life. Then, the fund had returned 20% to investors over a 12-month period, and a slew of positive earnings reports in the last few days have pushed that figure up even further. 

This consistently brilliant performance is a clear indication that Ecommerce Fund’s investment thesis is correct: we are experiencing a global shift towards electronic money. This is a trend that no investor should ignore.

Disclosure

The views expressed above are those of the author, and should not be construed as representative of Dominion Fund Management Ltd. All information was correct at time of writing. In the case of forward looking statements, these should not be construed as facts.


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Disclaimer
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.