December, 2022
The Fund produced a strong positive return for the quarter, though underperformed the benchmark.
Underlying manager returns were mostly strong in absolute terms, though mostly underperformed the market. Allan Gray was the standout best performer. The Fund continues to outperform its benchmark over the longer-term, including over 3 and 5 years, and since inception (all returns before fees).
Stock selection and asset allocation both contributed negatively over the quarter. The portfolio's small cash holding (circa 3%) also slightly reduced the relative performance as stocks rallied over the period.
Significant contributors to the relative return included overweight holdings in Stanmore Resources, Virgin Money UK and QBE Insurance Group. Shares in Coal mining company Stanmore Resources continued to surge over the quarter (+37%) in line with ongoing high coal prices. UKbased financial company Virgin Money UK shares rose (+57%) over the quarter, as the company reported a strong earnings result and a rising profit margin. Shares in Insurance company QBE meanwhile pushed steadily higher (+16%) as gross written premiums increased.
Significant detractors from the relative return included underweight holdings in BHP, Commonwealth Bank and Fortescue Metals. While the portfolio has significant holdings in these stocks, they reduced the relative return, given strong individual price performances. Shares in BHP rose over the quarter (+18%), helped by strength in metal prices as China began to ease its COVID restrictions. Shares in Fortescue Metals (+22%) also benefited from this dynamic over the period. Finally, shares in Commonwealth bank rose over the period (+13%) on optimism around profit margins as interest rates continued to rise.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wms_o-8.pdfSeptember, 2022
The Fund produced a positive return for the September quarter and outperformed the benchmark (before fees). Underlying manager returns was mixed. ECP and Macquarie solidly outperformed, while Alphinity and Allan Gray produced negative returns. The Fund continues to outperform its benchmark over the longer-term, including over 3 and 5 years, and since inception (all returns before fees).
Asset allocation contributed positively, while overall stock selection detracted. Stock selection in consumer discretionary however was particularly strong and contributed positively, as did the portfolio's small cash holding (circa 6%).
Significant contributions to relative return came from overweight holdings in Lovisa Holdings, Ansell and Megaport. Shares in fashion and jewellery retailer Lovisa rose (+56%) on surging earnings. Industrial and medical glove manufacturer Ansell shares rose (+15%) over the quarter, particularly in the period leading up to their August earnings report, which showed a fall in profit as expected due to falling glove sales as the COVID pandemic faded, though positive signs for the future including rising margins and cash conversion. Shares in technology company Megaport rose significantly (+43%) on the back of strong earnings reported earlier in the period.
Significant detractors from the relative return included overweights to Newcrest Mining, Alumina and Costa Group. Shares in gold miner Newcrest Mining steadily fell over the quarter (-18%), as the gold price fell further despite continued high inflation. Alumina shares also fell (-10%) amid falling commodity prices and rising costs. Horticulture and produce supplier, Costa Group, meanwhile fell (-20%) on the surprise announcement of its CEO's departure in late September.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wms_o-7.pdfJune, 2022
The Fund posted a negative return in the June quarter, underperforming the benchmark (before fees). Our underlying managers' performance was mixed in relative terms, though all struggled in absolute terms amid broad market falls. Alphinity and Macquarie (formerly managed by AMP Capital) outperformed, while Allan Gray and ECP underperformed. Overall, the Fund continues to outperform its benchmark over the longer term, including over 2, 3 and 5 years, and since inception (all returns before fees).
Stock selection was negative for the quarter, though allocation was positive. An overweight to energy stocks aided the relative return as the sector outperformed on the back of strong price rises.
Significant contributions to relative return came from overweight holdings in QBE, Woodside Energy and Worley. QBE shares rose (+6%) over the period, as insurance rate increases continued to flow through to earnings despite increased broader economic uncertainty. Woodside Energy shares closed the quarter slightly lower (-1%), though significantly outperformed the broader market, buoyed by sentiment towards the energy sector. Worley shares meanwhile gained (+10%) over the quarter, helped by the announcements of new contracts and agreements. The portfolio's small cash allocation also contributed positively amid falling markets.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wms_o-6.pdfMarch, 2022
The Fund posted a positive return in the March quarter and outperformed the benchmark (before fees). Our underlying managers generally posted solid performance, with Allan Gray again being the standout performer. Overall, the Fund continues to outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years, and since inception (all returns before fees).
Sector allocation was the prime driver of the outperformance, while stock selection was negative. Selection was strong in the energy sector, though week in financials. An overweight exposure to energy was the largest contributor to the outperformance.
The top individual contributors to the relative return were overweight exposures to Woodside Petroleum and Sims. Shares in petroleum explorer and producer, Woodside, soared over the quarter (+54.0%), as the oil price reached multi-year highs on the back of the Russia-Ukraine conflict. Global recycling company Sims' shares meanwhile spiked (+37.1%) on the release of a stellar earnings report mid quarter, indicating strong cash flow and net profit growth.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wms_o-5.pdfDecember, 2021
The Fund posted a positive return, though underperformed the benchmark for the quarter (before fees). Our underlying managers posted mixed returns, with Alphinity the strongest performer. Overall, the Fund continues to outperform its benchmark over the longer term, including over 2, 3 and 5 years, and since inception (all returns before fees). Stock selection and sector allocation both detracted from the quarter's relative return. Selection in the materials sector was a significant detractor from the relative return, though positive selection in information technology offset some of this. Regarding sector allocation, an overweight exposure to energy and an underweight exposure to real estate detracted, while an overweight exposure to materials added some value. Significant individual contributors to the relative return came from underweight exposures to Westpac and Commonwealth Bank and an overweight holding in Sims. Westpac and Commonwealth Bank both fell over the period (- 15.70% and -3.19% respectively) on news of falling net interest margins amid tough competition for mortgages combined with a deteriorating market outlook for housing prices. Inflation fears also likely added to volatility for financials. Metal recycling company, Sims, was up strongly over the quarter (+23.38%) as the company announced a buyback during the period, as well as some significant sales and acquisitions.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wms_o-4.pdfJune, 2021
The Fund posted a strong positive return but underperformed its benchmark over the June quarter. All of the Fund's four underlying managers posted positive returns, and ECP, Alphinity and AMP Capital outperformed their respective benchmarks. The Fund continues to outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years and since inception (all returns before fees). Both stock selection and sector allocation detracted modestly from relative returns.
Regarding sector allocation, the main detractors were a holding of cash, as the market rose strongly, and an overweight exposure to energy. These were partially mitigated by the main positive contributors which were underweight exposures to industrials and utilities. Regarding stock selection, by far the main detractors were positions in materials and consumer staples stocks, while the main positive contributors were positions in financials, health care and information technology stocks.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wms_o-3.pdfMarch, 2021
The Fund posted a positive return but modestly underperformed its benchmark over the March quarter. Three of the Fund's four underlying managers posted positive returns and Allan Gray, Alphinity and AMP Capital outperformed their benchmarks. The Fund continues to outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years and since inception (all returns before fees). Stock selection was the main reason for the Fund's underperformance, while sector allocation contributed positively to relative returns. Regarding sector allocation, the main contributors to relative returns were underweight exposures to real estate, industrials and utilities, while the main detractors were an overweight exposure to information technology and an underweight exposure to communication services
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wms_o-2.pdfDecember, 2020
The Fund posted a strong absolute return and outperformed its benchmark over the quarter. All of the Fund's four underlying managers posted positive absolute returns and Allan Gray strongly outperformed its benchmark. The Fund continues to outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years and since inception (all returns before fees).
Sector allocation was the main driver of the Fund's outperformance, while stock selection slightly detracted from relative returns. Regarding sector allocation, the main contributors to relative returns were underweight exposures to industrials and utilities, and an overweight exposure to energy. Meanwhile, by far the main detractor from relative returns was a cash holding, as the share market rallied strongly.
Regarding stock selection, the main detractors from relative returns were positions in information technology and financials, while the main contributors were positions in materials, health care and communication services.
The largest individual detractors from relative returns were overweight positions in Newcrest Mining, Magellan Financial Group and a2 Milk. Gold mining company Newcrest Mining declined (- 17.5%) as positive vaccine news boosted sentiment and weighed on the prices of safe-haven assets, such as gold. Financial services company Magellan Financial Group slumped (-5.3%) as its managed funds have underperformed recently and milk producer a2 Milk fell sharply (-18.5%) after it downgraded its earnings guidance.
The largest individual contributors to relative returns were overweight positions in Sims and NUIX and an underweight position in CSL. Metals recycling company Sims soared (+77.4%) as scrap metal prices are expected to increase over the next year as governments around the world undertake metalintensive infrastructure spending to stimulate economic recovery. Investigative analytics and intelligence software provider NUIX also soared (+70.6%) following its initial public offering. Meanwhile, global biotechnology company CSL waned (-1.3%) after announcing it would abandon the next phase of trials for its COVID-19 vaccine which was being developed by the University of Queensland
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wms_o-1.pdfSeptember, 2020
The Fund posted a strong positive absolute return and outperformed its benchmark over the September quarter. Two of the Fund's four underlying managers posted positive absolute returns and outperformed their respective benchmarks. ECP significantly outperformed, and Alphinity also outperformed, while Allan Gray and AMP Capital underperformed their respective benchmarks. The Fund continues to outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years and since inception (all returns before fees).
Stock selection was the main driver of the outperformance and sector allocation had little overall impact. Regarding sector allocation, the main contributors to relative returns were overweight exposures to information technology and consumer discretionary, and an underweight exposure to utilities, while the main detractors were an overweight exposure to energy and an underweight exposure to real estate.
Regarding stock selection, the main contributors to relative returns were positions in consumer discretionary, financials and information technology stocks, while the main detractors were positions in materials stocks.
The largest individual contributors to relative returns were overweight positions in HUB24, Corporate Travel Management and ARB Corporation. Wealth platform provider HUB24 rocketed higher (+99.3%) after providing a business update revealing record net inflows over the 2019-20 financial year, and subsequently reporting very strong full-year results with a positive outlook. Corporate Travel Management soared (+80.6%) after its full-year results showed it paid down debt while increasing its overall cash balance, which positions it well for growth beyond the impacts of the pandemic and four-wheel drive accessories group ARB Corporation climbed (+54.0%) after reporting solid full-year results despite the impacts of the pandemic.
ticker: AMP0681AU
commentary_block: Array
factsheet_url:
https://www.ampcapital.com/au/en/investments/funds/other-funds/specialist-australian-share-fund
under LATEST PERFORMANCE REPROT
release_schedule: Quarterly
fund_features:
AMP Capital Specialist Australian Share Fund aims to provide a total return (income and capital growth), after costs and before tax, above the Fund’s performance benchmark on a rolling 3 year basis.
- The Fund is designed to blend specialist investment managers with the aim of maximising returns and managing levels of risk.
- The underlying managers are assessed on multiple factors such as business structure, consistency and sustainability, team and its alignment, performance track record, and fees and capacity.
- Allocations are divided between Allan Gray (20%), Alphinity (30%), ECP (25%) and internal strategy AMPC (25%).
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