As global consumer staples businesses, Unilever (UL, Financial) and Nestlé (XSWX:NESN, Financial) encountered a number of common headwinds during first quarter 2021. After a 2020 fueled in part by lockdown-driven demand, consumer staples stocks generally continued to cool during the first quarter as investors shifted attention to the more economically sensitive areas of the market likely to benefit from re-openings and improved discretionary spending. Rising interest rates during the quarter, meanwhile, tended to adversely affect stocks viewed as "bond proxies," or those with a history of stable returns and higher-than-average dividend yields. Finally, US dollar strength during the first quarter provided a currency chal-lenge for companies with global revenue exposures.
From First Eagle Global Income Builder Fund's first-quarter 2021 commentary.
