October, 2020
Performance and activity
The Fund posted a negative return, comfortably outperforming its benchmark over the March quarter. All of the Fund’s underlying managers posted negative returns, however three of the Fund’s four managers outperformed the benchmark, led by Bennelong and Ausbil. DNR Capital was a relative laggard after performing strongly in the December quarter.
Asset allocation was the main contributor to relative returns over the quarter, with stock selection also contributing to performance. From an asset allocation perspective, the Fund benefited from overweight positions in the health care and information technology sectors, but was negatively impacted by an underweight position in the consumer staples sector.
Stock selection was particularly strong in the consumer discretionary, materials and real estate sectors but was a detractor in health care and consumer staples. Within consumer discretionary, the Fund’s overweight position in travel retailer Flight Centre (+30%) was also the largest single contributor to Fund performance over the quarter. The company’s share price soared after reporting exceptionally strong earnings and profit results for the December half year, as the business benefited from strong trading in the latter months of 2017, combined with the implementation of cost cuts. Other contributors at the stock level included global specialty biotechnology company CSL (+11%) and diversified financial services company Macquarie Group (+3%).
The biggest single detractor was an overweight position in cosmetics and toiletries company BWX (-36%), which suffered after it announced its December half year results which included a series of large acquisitions of three natural beauty businesses in North America. Investors were concerned as the company’s management also signalled lower revenues and expected earnings for FY2018 than was previously forecast, whilst undertaking marketing expenditure in its newly-acquired US businesses. Other positions which detracted included overweight positions in Londonbased asset manager Janus Henderson Group (-13%) and intellectual property services provider IPH (-36%).
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/PLAT-CLASS-A-.pdfAugust, 2020
Performance and activity
The Fund posted a negative return, comfortably outperforming its benchmark over the March quarter. All of the Fund’s underlying managers posted negative returns, however three of the Fund’s four managers outperformed the benchmark, led by Bennelong and Ausbil. DNR Capital was a relative laggard after performing strongly in the December quarter. Asset allocation was the main contributor to relative returns over the quarter, with stock selection also contributing to performance. From an asset allocation perspective, the Fund benefited from overweight positions in the health care and information technology sectors, but was negatively impacted by an underweight position in the consumer staples sector. Stock selection was particularly strong in the consumer discretionary, materials and real estate sectors but was a detractor in health care and consumer staples. Within consumer discretionary, the Fund’s overweight position in travel retailer Flight Centre (+30%) was also the largest single contributor to Fund performance over the quarter. The company’s share price soared after reporting exceptionally strong earnings and profit results for the December half year, as the business benefited from strong trading in the latter months of 2017, combined with the implementation of cost cuts. Other contributors at the stock level included global specialty biotechnology company CSL (+11%) and diversified financial services company Macquarie Group (+3%). The biggest single detractor was an overweight position in cosmetics and toiletries company BWX (-36%), which suffered after it announced its December half year results which included a series of large acquisitions of three natural beauty businesses in North America. Investors were concerned as the company’s management also signalled lower revenues and expected earnings for FY2018 than was previously forecast, whilst undertaking marketing expenditure in its newly-acquired US businesses. Other positions which detracted included overweight positions in London-based asset manager Janus Henderson Group (-13%) and intellectual property services provider IPH (-36%).
ticker: AMP1152AU
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Under “Performance & Activity”
asset_class: Domestic Equity
asset_category: Australia Large Blend - Core / Style Neutral
peer_benchmark: Domestic Equity - Large Cap Neutral Index
broad_market_index: ASX Index 200 Index
structure: Managed Fund