September, 2023
The Fund predominantly invests in a wide range of Australian shares
listed, or expected to be listed, on the Australian Securities
Exchange.
August, 2023
Whilst the Australian share market was a little weaker across August (S&P/ASX 300 Accumulation Index -0.8%), it outperformed hedged overseas indices. Returns were somewhat narrow across the various subindices with the S&P/ASX 50 Accumulation Index (-0.6%) the strongest relative performer and the S&P/ASX Small Ordinaries Accumulation Index (-1.3%) weakest.
Best performing sectors were Consumer Discretionary (5.8%) and Real Estate (2.2%), while the weakest performing sectors were Materials (-2.0%) and Consumer Staples (-3.1%). The largest positive stock contributors to index returns were Wesfarmers (8.9%), Goodman Group (13.9%) and CSL (2.0%). In contrast, the most significant detractors were Transurban (-7.2%), BHP (-1.9%) and ResMed (-24.0%)
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/FP101-Advance-Australian-Shares-Multi-Blend-Fund-Wholesale-Units-Aug-2023.pdfJuly, 2023
The Australian share market outperformed its hedged overseas counterpart over the month as the S&P/ASX300 Index returned 2.9%. The S&P/ASX Mid 50 Index was the strongest relative performer, returning 4.4%, while the S&P/ASX 50 Index was the weakest with a 2.6% return over the month.
The best performing sectors were Financials (4.9%) and Energy (8.4%), while the weakest performing sectors were Healthcare (-1.5%) and Consumer Staples (-1.0%). The largest positive stock contributors to the index return were Woodside Energy, ANZ and NAB with absolute returns of 11.2%, 9.2% and 8.2%, respectively. In contrast, the most significant detractors were CSL, Woolworths and Macquarie with absolute returns of -3.1%, -2.8% and -1.1%, respectively.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/FP502-Advance-Australian-Shares-Multi-Blend-Fund-Retail-Units-Jul-2023.pdfJune, 2023
The Australian share market underperformed its hedged overseas counterpart over the month as the S&P/ASX300 Index returned 1.7%. The S&P/ASX 50 Accumulation Index was the strongest relative performer, returning 2.1%, while the S&P/ASX Small Ords was the weakest with a flat return over the month.
The best performing sectors were Materials (4.6%) and Financials (3.1%), while the weakest performing sectors were Healthcare (-6.4%) and Communication Services (-1.0%). The largest positive stock contributors to the index return were BHP, Fortescue Metals and CBA with absolute returns of 7.9%, 16.3% and 3.6%, respectively. In contrast, the most significant detractors were CSL, Transurban and Telstra with absolute returns of -9.4%, -3.7% and -1.1%, respectively.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/FP502-Advance-Australian-Shares-Multi-Blend-Fund-Retail-Units-Jun-2023.pdfMay, 2023
The Australian share market underperformed its hedged overseas counterpart over the month as the S&P/ASX300 Index returned -2.5%. The S&P/ASX Mid 50 Accumulation Index was the strongest relative performer, generating a flat return, while the S&P/ASX Small Ords was the weakest, returning -3.3% over the month.
The best performing sectors were IT (10.4%) and Utilities (1.1%), while the weakest performing sectors were Consumer Discretionary (-6.2%) and Consumer Staples (-4.5%). The largest positive stock contributors to the index return were CSL, Woodside Energy and Xero with absolute returns of 2.0%, 2.8% and 17.8%, respectively. In contrast, the most significant detractors were NAB, BHP and Westpac with absolute returns of -9.5%, -4.6% and -7.5%, respectively
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/FP502-Advance-Australian-Shares-Multi-Blend-Fund-Retail-Units-May-2023.pdfApril, 2023
The Australian share market outperformed its hedged overseas counterpart over the month as the S&P/ASX300 Index returned 1.8%. The S&P/ASX Mid 50 Accumulation Index was the strongest relative performer, returning 3.5%, while the S&P/ASX 50 Accumulation was the weakest, returning 1.5% over the month.
The best performing sectors were Real Estate (5.2%) and IT (4.5%), while the weakest performing sectors were Materials (-2.6%) and Utilities (1.4%). The largest positive stock contributors to the index return were CSL, ANZ and NAB with absolute returns of 4.4%, 6.7% and 4.4%, respectively. In contrast, the most significant detractors were BHP, Rio Tinto and Fortescue Metals with absolute returns of -5.4%, -6.1% and -6.2%, respectively.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/FP101-Advance-Australian-Shares-Multi-Blend-Fund-Apr-2023.pdfMarch, 2023
The Advance Australian Shares Multi-Blend Fund declined by 0.15% on a net basis in March, outperforming the S&P/ASX 300 Accumulation Index which fell by 0.24%. It was a volatile month as Australian equities were caught up in the risk asset sell-off due to the collapse of Silicon Valley Bank and fears of financial contagion. Although the end of the month saw equities rise as investors reduced their expectations for more rate rises. The more economically sensitive sectors including Real Estate and Financials led the declines.
Underlying manager performance was mixed. Platypus was the top contributor to relative performance. The manager invests in companies with underappreciated earnings growth. In addition to being supported by style tailwinds, the large overweights and stock selection in Healthcare and IT were significant contributors to outperformance. On the other side, Fidelity was the biggest detractor. The manager seeks out companies that exhibit favourable industry dynamics, competitive advantages, high quality management teams, and are likely to exceed market expectations on earnings and cash flows. Stock selection was the primary driver of underperformance over the month and was weakest in Health Care.
From a sector perspective, the underweight and stock selection in Real Estate contributed the most to outperformance. On the other side, the underweight and stock selection in the Materials sector detracted the most. At the stock level, the overweight to Northern Star Resources was the top contributor to relative performance. The underweight to Newcrest Mining was the largest detractor.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-24.pdfFebruary, 2023
The Advance Australian Shares Multi-Blend Fund declined by 2.30% on a net basis in February, outperforming the S&P/ASX 300 Accumulation Index which fell by 2.55%. Domestic equities delivered weaker results after a strong January and underperformed global equities (2.09% as measured by the MSCI World ex AU Index). Reporting season was in focus over the month, which saw further earnings downgrades and weaker results across small caps.
At the manager level, Pendal was the top contributor to relative performance. The manager invests in companies where an anticipated change in earnings is not yet priced in by the market while also balancing thematic risks. Stock selection in the Financials sector was the largest contributor to relative performance, driven primarily by the portfolio’s insurance names. Solaris was the only detractor from relative performance. Solaris is a benchmark aware, style-neutral manager whose performance is primarily driven by stock selection. The underperformance was due to negative stock selection across the cyclical segments of the market. The underweight and negative stock selection in the Consumer Discretionary and IT detracted the most.
From a sector perspective, stock selection in the Financials sector contributed most to relative outperformance. On the other side, the underweight and stock selection in the Industrials sector detracted the most. At the stock level, the overweight to Aristocrat Leisure was the top contributor to relative performance. The overweight to Northern Star Resources was the largest detractor
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-23.pdfJanuary, 2023
The Advance Australian Shares Multi-Blend Fund returned 6.64% on a net basis in January, outperforming the S&P/ASX 300 Accumulation Index which returned 6.29%. Domestic equities performed strongly over the period outperforming global equities (2.97% as measured by the MSCI World ex AU Index). Growing optimism for a soft-landing scenario at the global level supported the outperformance of Australia’s cyclical-heavy benchmark. All sectors except Utilities delivered positive absolute returns, led by Consumer Discretionary and Materials sectors.
At the manager level, Platypus was the top contributor to relative performance. The manager invests in companies with underappreciated earnings growth, which typically results in the portfolio having a growth bias. Falling real yields over the month provided a style tailwind for the portfolio. Stock selection was positive across most sectors and was most rewarded in Financials. Realindex was the largest detractor from relative performance. The quantitative manager builds portfolios based on accounting measures representative of fundamental value independent of the benchmark. Relative underperformance was driven by weaker stock selection. This was weakest in Materials and Financials and were the largest detractors over the month.
From a sector perspective, stock selection in the Real Estate sector contributed most to relative outperformance. On the other side, stock selection in the Materials sector detracted the most. At the stock level, the overweight to Goodman Group was the top contributor to relative performance. The underweight to Pilbara was the largest detractor.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-22.pdfDecember, 2022
The Advance Australian Shares Multi-Blend Fund fell 3.5% on a net basis in December, marginally underperforming the S&P/ASX 300 Accumulation Index which fell 3.29%. The decline in Australian equities was in line with global equities which fell 5.49% (MSCI World ex AU). All sectors delivered negative returns with consumer discretionary the worst performer amid heightened recessionary fears. Materials was the best performer on the back of China re-opening and an improved demand outlook.
At the manager level, Realindex was the top contributor to relative performance. The quantitative manager builds portfolios based on accounting measures representative of fundamental value, independent of the market benchmark. The overweight and stock selection in both materials and financials contributed significantly to returns. Platypus was the leading detractor over the month. Platypus is a high conviction benchmark unaware manager that invests in companies that have underappreciated sustainable earnings growth. Stock selection amongst the portfolio’s consumer discretionary names detracted from relative returns.
From a sector perspective, stock selection in the materials sector contributed the most to relative outperformance. On the other side, stock selection in real estate was the largest detractor. At the stock level, not holding Pilbara Minerals was the largest contributor, while the underweight to Rio Tinto was the largest detractor.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-21.pdfNovember, 2022
The Advance Australian Shares Multi-Blend Fund returned 6.50% on a net basis in November, keeping pace with the S&P/ASX 300 Accumulation Index which increased 6.49%. Australian Equities rallied over the period, outperforming global equities which returned 2.02% (MSCI World ex AU). All sectors delivered positive absolute returns, but the Materials and Utilities sectors were particularly strong, rising by 16% and 21%, respectively.
At the manager level, Realindex was the top contributor to relative performance. The quantitative manager builds portfolios based on accounting measures representative of fundamental value, independent of the market benchmark. The overweight and stock selection in both Materials and Utilities contributed significantly to returns. Pendal was the leading detractor. The manager invests in companies where an anticipated change in earnings is not yet priced in by the market, while also balancing thematic risks. Stock selection amongst the portfolio’s resources stocks in the Materials and Energy sector detracted from relative returns.
From a sector perspective, the underweight and stock selection in the Financials sector contributed the most to relative outperformance. On the other side, negative stock selection in Consumer Discretionary was the largest detractor. At the stock level, the overweight to BHP was the largest contributor, while the underweight to Rio Tinto was the largest detractor
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-20.pdfOctober, 2022
The Advance Australian Shares Multi-Blend Fund returned 5.51% on a net basis in October, underperforming the S&P/ASX 300 Accumulation Index which increased 5.96%. The domestic market was supported by the RBA raising rates by only 25bps, which is less than the market was expecting. Cyclical sectors including Financials, AREITs, and Energy responded most positively to the move to step down the pace of rate hikes.
Solaris was the largest positive contributor to relative performance. Solaris is a benchmark aware, style-neutral manager whose performance is primarily driven by stock selection. Stock selection amongst the cyclical sectors, such as Materials and Financials, contributed the most to outperformance. On the other hand, Platypus detracted the most. The manager invests in companies with underappreciated earnings growth, which typically results in the portfolio carrying higher valuation risk. In addition to style headwinds, the underweight and negative stock selection in Financials (especially having no exposure to the major banks) was the largest detractor.
From a sector perspective, the stock selection in Consumer Discretionary was the largest contributor to relative performance. On the other hand, the underweight and stock selection in Financials was the largest detractor. At a stock level, the underweight to Rio Tinto was the top contributor, followed by the overweight to ASX Limited. The underweight to Commonwealth Bank was the largest detractor, followed by the overweight to BHP.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-19.pdfSeptember, 2022
The Advance Australian Shares Multi-Blend Fund declined -6.12% on a net basis in September, outperforming the S&P/ASX 300 Accumulation Index which fell -6.29%. Australian equities underperformed global equities, which fell -3.23% as measured by the MSCI World ex AU Index. Tightening financial conditions and recession risks drove the sell-off in equity markets. In Australia, all sectors delivered negative absolute returns with Utilities and Real Estate faring the worst.
Realindex was the leading contributor to relative performance. Realindex builds a portfolio based on accounting measures representative of fundamental value, independent of the market benchmark. The overweight to, and stock selection in, the Energy sector was the largest contributor to outperformance. On the other hand, Platypus detracted the most. The manager invests in companies with underappreciated earnings growth, which typically results in the portfolio carrying higher valuation risk. Stock selection in Financials and Real Estate were the largest detractors from performance.
From a sector perspective, the overweight to, and stock selection in, Health Care was the largest contributor to relative performance. On the other hand, stock selection in Financials was the largest detractor. At a stock level, the underweight to AVZ Minerals was the top contributor, followed by the overweight to BHP. The overweight to Goodman Group was the largest detractor, followed by the underweight to Pilbara Minerals.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-18.pdfAugust, 2022
The Advance Australian Shares Multi-Blend Fund returned 1.52% on a net basis in August, outperforming the S&P/ASX 300 Accumulation Index which delivered 1.18%. August reporting season concluded with Australian companies proving resilient against a more challenging economic backdrop. Earnings results generally beat consensus expectations, but FY23 guidance was a source of disappointment leading to estimate downgrades.
Platypus was the leading contributor to relative performance. The manager invests in companies with underappreciated growth prospects. Several of the portfolio’s stocks were rewarded over the earnings reporting season. Stock selection was positive in every sector, except for Energy. On the other side, Pendal was the largest detractor. Pendal invests in stocks where there is an anticipated change in earnings, while managing the portfolio to emphasise stock specific risk as the primary alpha driver. Stock selection was weak across most sectors over July, particularly in the Energy and Financials sector. This was most pronounced in the Materials sector, which was the largest detractor over the period. From a sector perspective, the underweight to, and stock selection in, Financials was the largest contributor to relative performance. On the other hand, the underweight to, and stock selection in, Materials was the largest detractors. At a stock level, the overweight to OZ Minerals was the top contributor, while the underweight to Pilbara Minerals was the largest detractor
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-17.pdfJuly, 2022
The Advance Australian Shares Multi-Blend Fund returned 5.60% on a net basis in July, underperforming the S&P/ASX 300 Accumulation Index which delivered 5.95%. Domestic equities underperformed global equities, which returned 6.40% (MSCI World ex-AU). Performance was driven by the market’s expectations for less exaggerated rate hikes in the face of slowing growth. Growth stocks delivered positive returns over the month on falling bond yields, while commodity sensitive stocks in the Materials and Energy sector underperformed.
Platypus was the leading contributor to relative performance. The manager invests in companies with underappreciated growth prospects, which typically results in the portfolio carrying higher valuation risk. Outperformance was supported by the rebound in growth names. The largest contribution came from the overweight and positive stock selection in IT and Health Care. On the other side, Pendal was the largest detractor. Pendal emphasises stock specific risk as the primary alpha driver. Stock selection was weak across most sectors over July, particularly in the Energy and Financials sector.
From a sector perspective, stock selection in Industrials was the largest contributor to relative performance, followed by an underweight to Materials. On the other hand, stock selection in Energy and an underweight to Financials were the largest detractors. At a stock level, the overweight to Goodman Group was the top contributor, while the overweight to BHP was the largest detractor.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-16.pdfJune, 2022
The Advance Australian Shares Multi-Blend Fund declined 8.63% on a net basis in June, outperforming the S&P/ASX 300 Accumulation Index which declined 8.97%. Domestic equities underperformed global equities, which fell 4.64% (MSCI World ex-AU). The RBA raised rates by 0.50% in June in response to high inflation. Concerns related to the increasing probability of a US recession in 2023 carried over to domestic equities, where defensive stocks outperformed.
Platypus was the leading contributor to relative performance. The manager invests in companies with underappreciated growth prospects, which typically results in the portfolio carrying higher valuation risk. The portfolio’s heavy overweight and stock selection in healthcare was the key contributor to performance in a market that rewarded defensiveness.
On the other side, Fidelity was the largest detractor. The manager has a slight quality/growth bias but emphasises stock specifics as the primary driver of returns. Stock selection in the Materials sector was the main detractor. A high conviction holding in Evolution Mining (gold miner) weighed on performance after it provided a softer production update and lowered FY23 guidance. From a sector perspective the overweight to, and stock selection in, health care was the largest contributor to relative performance. Conversely the underweight to, and negative stock selection in, industrials was the largest detractor. At a stock level, the underweight to Block was the top contributor, while the overweight to Evolution Mining was the largest detractor.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-15.pdfMay, 2022
The Advance Australian Shares Multi-Blend Fund declined 2.85% on a net basis in May, underperforming the S&P/ASX 300 Accumulation Index which declined 2.76%. Domestic equities underperformed global equities, which fell 0.83% (MSCI World ex-AU). The RBA started to raise interest rates with a 0.25% hike in May. Rising rates and persistent inflation have remained headwinds to expensive growth stocks.
Pendal was the largest positive contributor to relative performance. The strategy is designed to perform in all market environments as it emphasises stock specific risk as the primary driver of returns. Stock selection was most rewarded amongst the portfolio’s cyclical names over the period, particularly in Consumer Discretionary. Platypus was the largest detractor. The manager invests in companies with underappreciated growth prospects, which typically results in the portfolio carrying higher valuation risk. In addition to the manager facing style headwinds, its stock selection in Financials detracted heavily.
From a sector perspective, the underweight to Financials was the largest contributor to relative performance. Conversely, the overweight to, and negative stock selection in, Communication Services was the largest detractor. At a stock level, the overweight to Santos was the top contributor, while the overweight to Goodman Group was the largest detractor.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-14.pdfApril, 2022
The Advance Australian Shares Multi-Blend Fund returned -0.66% on a net basis in April, outperforming the S&P/ASX 300 Accumulation Index which returned -0.84%. Domestic equities outperformed global equities, which fell 3.17% (MSCI World ex-AU) in response to an increasingly hawkish US Fed and mounting concerns over the global growth outlook. In Australia, returns were supported by defensive sectors including Utilities, Consumer Staples, and Healthcare.
Realindex was the largest positive contributor to relative performance. The quantitative manager builds portfolios based on accounting measures representative of fundamental value independent of the market benchmark. The portfolio benefitted from being underweight higher PE names that have been under pressure this year. Platypus was the largest detractor. The manager invests in companies with underappreciated growth prospects, which typically results in the portfolio carrying higher valuation risk. The manager’s investment style has faced significant headwinds over the year-todate given the backdrop of inflation and higher interest rates.
From a sector perspective the underweight to, and positive stock selection in, IT was the largest contributor to relative performance. On the other hand, negative stock selection in Communication Services was the largest detractor. At a stock level, the underweight to Block was the top contributor, while the overweight to BHP was the largest detractor.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-13.pdfFebruary, 2022
The Advance Australian Shares Multi-Blend Fund returned 2.0% on a net basis in February, slightly underperforming the S&P/ASX 300 Accumulation Index which returned 2.09%. The Australian market proved resilient against a global sell-off triggered by the invasion of Ukraine by Russia. The index’s greater exposure to cyclical sectors, such as Materials and Banks, supported this outperformance.
Underlying manager performance was mostly positive. Realindex was the largest contributor to relative performance. The quantitative manager builds the portfolio based on accounting measures representative of fundamental value, independent of the market benchmark. The manager generated alpha across all sectors over the period. The underweight to, and strong stock selection in, IT was the largest contributor. Platypus was the largest relative detractor. The manager invests in companies with underappreciated growth prospects. The underperformance of growth stocks has been a headwind for Platypus. Stock selection has also been weak and was most pronounced in the Materials sector where the underweight to Gold detracted. From a sector perspective, the underweight to, and positive stock selection in, Consumer Discretionary was the largest contributor to relative performance. Conversely, the underweight and negative stock selection in Materials was the largest detractor. At a stock level, the underweight to Wesfarmers was the top contributor, whilst the overweight to Xero was the largest detractor.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-12.pdfJanuary, 2022
The Advance Australian Shares Multi-Blend Fund returned -6.22% on a net basis in January, outperforming the S&P/ASX 300 Accumulation Index which returned -6.45%. Australian equities followed global markets lower in response to the Fed’s hawkish stance, which drove real yields higher. The IT sector was most impacted by rising yields due to its high valuations. On the other hand, the Energy sector led returns were supported by higher oil and gas prices.
Underlying manager performance was mostly positive. Tyndall was the largest contributor to relative performance. The manager invests in a concentrated portfolio of stocks it believes to be undervalued when assessed against its mid-cycle earnings. The manager’s value bias was well rewarded, and so too was its large overweight to the Energy sector. Platypus was the largest relative detractor. The manager invests in companies with underappreciated growth prospects. This has led the portfolio to hold stocks trading at high valuations, which sold off over the period. From a sector perspective, the overweight and positive stock selection in Energy was the largest contributor to relative performance. On the other hand, negative stock selection in IT was the largest detractor. At a stock level, the overweight to BHP was the top contributor, while the underweight to Rio Tinto was the largest detractor
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Fixed-Interest-Multi-Blend-Fund-factsheet.pdfDecember, 2021
The Advance Australian Shares Multi-Blend Fund returned 2.58% on a net basis in December, underperforming the S&P/ASX 300 Accumulation Index which returned 2.65%. Australian equities gained as investors looked through the surging COVID cases amidst signs the Omicron variant has less disease severity. Index returns were led by strong gains in Utilities and Materials, while IT suffered a large fall. Underlying manager performance was mixed. Realindex was the largest contributor to relative performance. The manager employs a quantitative approach to building a portfolio based on accounting measures representative of fundamental value. This approach guides the large underweights to IT and Healthcare, which were key contributors this month in line with ‘Value’ outperforming. Platypus was the largest relative detractor. The manager invests in companies with underappreciated growth prospects which wasn’t rewarded over the month, especially its holdings within Health Care and IT. From a sector perspective, the underweight to and positive stock selection in Consumer Staples was the largest contributor to relative performance. On the other hand, negative stock selection in Materials was the largest detractor. At a stock level, the underweight to Afterpay was the top contributor, while the overweight to Commonwealth Bank was the largest detractor
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-11.pdfNovember, 2021
The Advance Australian Shares Multi-Blend Fund returned -0.63% on a net basis in November, underperforming the S&P/ASX 300 Accumulation Index which returned -0.53%. Australian equities fell on concerns over the new Omicron variant. The most cyclical sectors in the market including Energy and Financials had the sharpest falls as investors sought defensive positions. The Materials sector was a bright spot driven by iron ore miners. Underlying manager performance was mixed. Platypus was the largest contributor to relative performance. The manager seeks to invest in companies with underappreciated sustainable growth in earnings. The underweight to Financials combined with strong stock selection was the largest positive contributor. More specifically, not holding the major Banks was the primary driver of alpha within the sector. Tyndall was the largest relative detractor. The manager invests in companies that are undervalued when assessed against the company’s mid-cycle earnings. The overweight to, and negative stock selection in, Financials was the largest detractor over the period. From a sector perspective, the overweight to Communication Services was the largest contributor to relative performance. On the other hand, the overweight to Energy was the largest detractor. At a stock level, the underweight to Commonwealth Bank was the top contributor, while the overweight to Westpac Bank was the largest detractor
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-10.pdfOctober, 2021
The Advance Australian Shares Multi-Blend Fund returned 0.17% in October, outperforming the S&P/ASX 300 Accumulation Index which returned 0.10%. Domestic returns were muted over the period on inflation concerns. Underlying CPI data came in higher than expected and companies continued to report on supply shortages during October AGMs. Shorter-term bond yields increased, reflecting the market bringing forward expectations for timing of rate hikes.
Underlying manager relative performance was mixed. Platypus was the largest contributor to relative performance. The manager seeks to invest in companies with underappreciated sustainable growth in earnings. Strong stock selection in Financials was the largest contributor to relative performance. More specifically, the overweight positions in asset/investment management firms (Netwealth, Macquarie, Pinnacle) were the drivers of alpha within the sector. Tyndall was the largest relative detractor. The manager invests in companies that are undervalued when assessed against the company’s mid-cycle earnings. Negative stock selection in Financials was the largest detractor over the period, driven by an underweight to Macquarie and overweight to Suncorp.
From a sector perspective, positive stock selection in Consumer Staples was the largest contributor to relative performance. On the other hand, negative stock selection in Materials was the largest detractor. At a stock level, the underweight to Rio Tinto was the top contributor, while the underweight to Newcrest Mining was the largest detractor.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-9.pdfSeptember, 2021
The Advance Australian Shares Multi-Blend Fund returned -1.40% on a net basis in September, outperforming the S&P/ASX 300 Accumulation Index which returned -1.89%. The index ended its 11-month streak of positive returns in September. Materials was the worst performing sector following a sharp decline in iron ore prices off the back of concerns around Evergrande and the impacts it would have on iron ore demand from China. Energy, on the other hand, returned 15% over the month as energy prices lifted on offshore supply shortages.
Underlying manager relative performance was mostly positive with Tyndall the largest contributor and Platypus the only detractor. Tyndall invests in companies that are undervalued relative to mid-cycle earnings whereas Platypus seeks to invest in companies with sustainable earnings growth. Tyndall’s overweight to the Energy sector on valuation grounds paid off over after energy prices rallied on supply shortages. Across the portfolio, Oil Search and Viva Energy Group were the largest stock contributors. However, as long-term bond yields moved higher over the month, Platypus’ portfolio was negatively impacted due to being overweight long duration growth stocks and underweight financials. From a sector perspective, positive stock selection in Consumer Discretionary was the largest contributor to relative performance. On the other hand, negative stock selection in Real Estate was the largest detractor. At a stock level, the overweight to Santos was the top contributor, while the overweight to BHP was the largest detractor
File:August, 2021
The Advance Australian Shares Multi-Blend Fund returned 2.45% on a net basis in August, underperforming the S&P/ASX 300 Accumulation Index which returned 2.61%. Reporting season was the main event over the month. June half earnings were positive with slightly more beats than misses, but there have been downgrades to FY22 earnings estimates. Information Technology was the strongest performing sector, led by Wisetech and Afterpay. Materials was the laggard, weighed down by iron ore miners after the commodity price fell on weaker steel demand. Underlying manager relative performance was mixed. Platypus was the most positive contributor to relative performance. The large overweight to IT helped relative performance, led by Afterpay, which jumped following Square Inc’s announcement to acquire the payments company. Realindex was the largest detractor. The manager employs a quantitative approach to building a portfolio based on accounting measures representative of fundamental value. This approach guides the large underweights to IT and Healthcare, which when combined with weaker stock selection, were the key sources of underperformance.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-8.pdfJuly, 2021
The Advance Australian Shares Multi-Blend Fund returned 0.77% on a net basis in July, underperforming the S&P/ASX 300 Accumulation Index which returned 1.11%. Australian equities have held up despite delta variant outbreaks sending several states across the country into lockdowns. The Materials sector was the largest contributor to index returns, driven by stronger gains from miners. Underlying manager relative performance was mostly negative with Platypus being the only manager that outperformed. The manager seeks to invest in companies with underappreciated sustainable earnings growth. An absence of the major banks in the portfolio was the largest positive contributor, followed by strong stock selection in Health Care. Pendal was the largest detractor from relative performance. The underperformance from the portfolio’s cyclical/value (e.g. Santos, Crown) stocks offset stronger performance from growth holdings (e.g. Xero, NextDC, etc.). From a sector perspective, the underweight to IT and positive stock selection within the sector was the largest contributor to relative performance. On the other hand, negative stock selection in Industrials was the largest detractor. At a stock level, the overweight to BHP Group was the top contributor, while the underweight to Sydney Airport which was subject to a takeover offer was the largest detractor.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-7.pdfJune, 2021
The Advance Australian Shares Multi-Blend Fund returned 1.98% on a net basis in June, underperforming the S&P/ASX 300 Accumulation Index which delivered 2.25%. Concerns about inflation and rising bond yields were the key driver of market returns over the period. There is debate over whether the inflationary pressures that are being observed are transitory or structural.
Underlying manager performance was mixed. Platypus was the largest positive contributor to relative returns. The manager looks to invest in companies with sustainable earnings growth. In addition to the manager’s style bias benefitting from falling bond yields, stock selection contributed significantly to relative outperformance. Stock selection was strongest across Health Care and Industrials. Realindex was the largest detractor from relative returns. The fundamental index portfolio is built based on accounting measures representative of fundamental value, independent of the market benchmark. The manager’s underperformance is partly attributable to value factors being out of favour in the market. From a sector perspective - IT and Consumer Discretionary lead outperformance. On the other hand, Utilities and Energy were the only sectors to have negative returns over the period. There are signs that the cyclical/reopening trade may have neared peak momentum.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-6.pdfMay, 2021
The Advance Australian Shares Multi-Blend Fund returned 2.10% on a net basis in May, underperforming the S&P/ASX 300 Accumulation Index which delivered 2.31%. Rising inflation expectations were the key driver of market movements, supporting gains within Financials where the strong performance of the Banks was a large driver of the index.
Underlying manager performance was mixed. Pendal was the largest contributor to relative performance. The manager’s market-oriented approach has guided current portfolio positioning that moderately leans into a cyclical recovery. These exposures have supported performance in the early stages of the economic recovery. Platypus was the largest detractor from relative performance. The manager remains exposed to attractive opportunities amongst higher quality companies with sustainable earnings growth, but concerns around inflation and rising rates have been a short-term headwind to relative performance.
From a sector perspective - the underweight to, and positive stock selection in IT was the largest contributor to relative performance. Conversely the underweight to, and negative stock selection in Financials was the largest detractor. At a stock level the underweight to Afterpay was the top contributor, while the underweight to Commonwealth Bank was the largest detracto
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-5.pdfMarch, 2021
The Advance Australian Shares Multi-Blend Fund returned 2.48% on a net basis in March, outperforming the S&P/ASX 300 Accumulation Index by 0.18%. Momentum in the Australian market continued into March with positive sentiment supported by improving economic data and progress with global vaccine rollouts. Financials were the largest driver of index performance, whereas Materials were dragged lower by commodity prices.
Underlying manager performance was mixed, with Pendal being the largest positive contributor to relative performance. The manager has been incrementally repositioning the portfolio into ‘vaccine-winning’ stocks that have benefited from the economic recovery. Over March, the largest contributor to the manager’s performance was positive stock selection in IT, led by not holding Afterpay. Platypus was the largest detractor from relative performance. The pullback in growth stocks has been a challenge for the manager whose focus is on companies with sustainable growth prospects. The overweight to IT has been the manager’s largest source of underperformance over the period.
From a sector perspective, the underweight to and positive stock selection in Consumer Discretionary was the largest contributor to relative performance. On the other hand, underweight to and negative stock selection in Real Estate was the largest detractor. At a stock level, the underweight to Afterpay was the largest positive contributor, while the overweight to BHP was the largest detractor.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-4.pdfJanuary, 2021
The Advance Australian Shares Multi-Blend Fund returned -0.12% on a net basis in January, slightly underperforming the S&P/ASX 300 Accumulation Index by 0.46%. Australian equities were flat over the month, as the recent positive sentiment around vaccines slowed with concerns over mutated strains and hotel quarantine leakages.
Underlying manager performance was mixed. Realindex was the largest positive contributor to relative performance. The manager’s portfolio is built based on accounting measures representative of fundamental value and has continued to benefit from the value rotation, which followed positive vaccine news at the end of last year. Fidelity was the largest detractor over the period, with performance suffering due to the manager’s underweight to the big four banks and an overweight to Polynovo, a medical devices company which had an announcement of slower than expected sales. From a sector perspective, positive stock selection in Materials was the largest contributor to performance. On the other hand, negative stock selection in IT was the largest detractor driven by the underweight to Afterpay and overweight to Xero. At a stock level, the underweight to Sydney Airport was the largest positive contributor, while the underweight to Wesfarmers was the largest detractor.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-2.pdfDecember, 2020
The Advance Australian Shares Multi-Blend Fund returned 14.07% over the December quarter, outperforming the S&P/ASX 300 Accumulation Index by 0.28%.
Realindex was the largest positive contributor to relative performance and continues to benefit from greater optimism in the economy and their net overweight positions to banks within the Financials sector. Platypus, on the other hand, was the largest detractor from relative performance. Their sustainable growth approach to investing has worked well over 2020, however with the rotation towards value the fund detracted from performance this quarter. At a sector level, positive stock selection in Industrials was the largest contributor to relative performance with an underweight to Transurban being the largest contributor. At a stock level, the underweight to Newcrest Mining Limited has been the largest contributor to performance. As the risk appetite of investors increased following positive vaccine news, the demand for safe haven assets such as Gold fell over the quarter which affected Newcrest Mining’s share price. Negative stock selection in Information Technology was the largest detractor from relative performance, closely followed by an underweight to Banks. At a stock level, the underweight to Afterpay was the largest detractor from performance as fundamental managers continue to find it difficult to justify the current valuation.
Australian equities performed strongly over the quarter, returning 13.79% as measured by the S&P/ASX 300, materially outperforming global equities (MSCI World ex Australia net dividends), which returned 5.68% over the same period. The difference is partly attributed to a stronger AUD which detracted from unhedged international equity exposure. Following an uneasy few weeks in October, the November US elections and approval of several COVID-19 vaccines improved consumer sentiment and resulted in strong market performance. Australian economic data released during the period was also positive over the quarter. The headline inflation rate saw a rebound and was up by 1.6% for the previous quarter. Similarly, GDP for Q3 increased by 3.3% which contributed to the partial recovery of the -7% drop in Q2. The cash rate was reduced to another historical low of 0.10%, from a previous 0.25%. The positive news saw a sharp rotation into Value stocks that have been underperformers year to date. Areas of the market that benefited most were financials, energy and materials. Conversely, stocks that had been performing well throughout 2020 such as Healthcare and defensive Consumer Staples underperformed over the quarter
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet-1.pdfNovember, 2020
The Advance Australian Shares Multi-Blend Fund returned 10.65% on a net basis in November, outperforming the S&P/ASX 300 Accumulation Index by 0.42%.
Australian equities had their highest one month return since 1988 on the back of positive news surrounding the progress of COVID-19 vaccines. Underlying manager performance was mixed. Nikko was the largest contributor to relative performance, benefitting from a strong market rotation into value and ‘vaccine winner’ stocks. This style rotation consequently resulted in Platypus being the largest detractor over the period. The manager’s portfolio has a moderate exposure to defensive stocks, which investors have shifted out of given the optimism over a potential vaccine. From a sector perspective, the overweight to, and positive stock selection in Industrials was the largest positive contributor to performance.
On the other hand, the underweight to, and negative stock selection in Real Estate was the largest detractor. At a stock level, overweight to Qantas was the largest positive contributor, while the underweight to National Australia Bank Limited was the largest detractor.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Advance-Australian-Share-Multi-Blend-Fund-factsheet.pdfOctober, 2020
The Advance Australian Shares Multi-Blend Fund returned 1.98% on a net basis in October, outperforming the S&P/ASX 300 Accumulation Index by 9 basis points. The key highlight of the month was the Federal Budget, targeting job creation and investment. Together with existing supportive monetary and fiscal support, this has helped to lift domestic equities higher.
Underlying manager performance was mostly positive. Platypus was the largest contributor to relative performance, benefitting from the market’s favour of those companies that have been able to maintain earnings growth. The balance of both structural and cyclical growth names in the portfolio have also allowed the manager to add value irrespective of the market risk sentiment, although the portfolio remains vulnerable in the event of a stronger value rebound. Nikko was the largest detractor over the period with their underweight to, and negative stock selection in, Financials dragging on performance.
From a sector perspective, positive stock selection in Industrials and Consumer Staples were the largest positive contributors to performance. On the other hand, negative stock selection in IT and Energy were the largest detractors. At a stock level, the underweight to gold miner, Newcrest Mining, was the largest positive contributor, while the underweight to Afterpay was the largest detractor.
File:ticker: ADV0045AU
commentary_block: Array
factsheet_url:
Fund factsheet
http://www.advance.com.au/funds/sector-multi-blend-funds/australian-share-multi-blend-fund.asp
https://www.multimanager.mercer.com.au/fund-facts/single-sector-funds.html
release_schedule: Monthly
fund_features:
The Advance Australian Shares Multi-Blend Fund is an actively managed multi-manager portfolio of predominantly Australian Shares. The securities are managed by investment managers selected by Advance.
- The Advance Australian Shares Multi-Blend Fund is ideal for investors seeking long-term capital growth from a diversified portfolio of Australian shares.
- The Fund aims to outperform the S&P/ASX 300 Accumulation Index over periods of five years or more.
manager_contact_details: Array
asset_class: Domestic Equity
asset_category: Australia Large Blend - Broad Cap - Passive
peer_benchmark: Domestic Equity - Large Cap Passive Index
broad_market_index: ASX Index 200 Index
structure: Managed Fund