December, 2022
The Fund posted a strong positive return and comfortably outperformed its benchmark during December quarter. All of the Fund's five underlying managers gained ground, with American Century the only manager to underperform its benchmark. In what was a tough year for markets, while the Fund lost ground it outperformed its benchmark.
At a country level, active allocation held back performance on a relative basis. Holdings in Brazil detracted most, while within developed markets, the underweight position in Germany was the main detractor. On the flipside, the overweight position in the UK was a strong contributor, with an underweight position in the US also supportive.
Sector allocation also added value. Being overweight to energy and underweight to consumer discretionary were the main contributors, whereas the overweight position in industrials detracted. Stock selection was also a contributor to relative returns, particularly positions in IT and consumer discretionary stocks, while positions in industrials and energy stocks detracted most.
The largest individual stock contributors were having a nil position in Tesla and underweight exposures to Apple and Amazon.com. US-based automaker and energy storage company Tesla (- 56%) fell heavily amid fears high inflation may reduce demand for its electric vehicles as well as potential impacts of China's COVID-19 lockdown on EV production and Elon Musk possibly reducing his shareholding to compensate for Twitter losses.
Shares in US-based technology company Apple (- 11%) and online retailer and cloud services provider Amazon.com (-30%) also suffered on the back of falling economic growth expectations as these types of stocks saw their premium share prices pull back.
The largest individual stock detractors were overweight positions in Petroleo Brasileiro, Global Payments Inc and Itau Unibanco Holding. Shares in state-owned Brazilian oil producer Petroleo Fund Performance state-owned Brazilian oil producer Petroleo Brasileiro (-9%) and financials services provider Itau Unibanco Holding (-12%) fell amid heightened market concerns relating to the potential for political unrest surrounding Brazil's presidential election results. US-based financial payments tech company Global Payments Inc (-13%) also lost ground despite declaring record results for the September quarter, as lower economic growth expectations dampened investor sentiment.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wctf_a-8.pdfSeptember, 2022
The Fund posted a negative return and underperformed its benchmark during September quarter, giving back some of the strong outperformance in the first half of the year. All of the Fund's five underlying managers lost ground, with Orbis outperforming their respective benchmark.
The Fund continues to outperform its benchmark over the long term, including since inception (annualised). (All returns are before fees.) At a country level, active allocation was slightly negative overall on a relative basis. Within developed markets, the underweight position in the US and overweight in the UK and were the main detractors, whilst an underweight exposure to Germany was the main contributor. In emerging markets, holdings in Brazil were the main contributors to performance. The Fund's cash position in US dollars contributed as the currency rallied strongly.Sector allocation was also a slight detractor overall. Underweight exposures to information technology and consumer discretionary were the main detractors and outweighed the contribution from an overweight exposure to energy.
Stock selection was the largest detractor from relative returns during the period, particularly positions in IT and consumer discretionary stocks, while positions in financials stocks were major contributors to performance overall. The largest individual stock detractors were the underweight exposures to Apple and Amazon.com and having a nil position in Tesla.
Shares in US-based technology company Apple (+8%) rose after the company released results for the June quarter which included iPhone sales, revenue and profit which exceeded market expectations. US-based automaker and energy storage company Tesla (+26%) rebounded after the company reported revenue growth of 42% in the June quarter. Shares in online retailer and cloud services provider Amazon.com (+8%) shares also rallied on the back of announcing better-thanexpected revenue results, with company management providing improved guidance.
The largest individual stock contributors were the overweight exposures in Sunrun, Cheniere Energy and Petroleo Brasileiro.
US home solar panel and battery storage company Sunrun (+26%) saw its share price surge after a number of broker analysts increased their stock price forecasts on the back of healthy company results being announced during the period. Shares in US LNG producer Cheniere Energy (+34%) rallied as elevated natural gas prices supported revenue. State-owned Brazilian oil producer Petroleo Brasileiro (+34%) shares also rose, with the company's latest results being buoyed by elevated oil prices and following the first round of the country's presidential elections, with the closer than expected outcome encouraging for investors as economic reforms may be more likely.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wctf_a-7.pdfJune, 2022
The Fund posted a negative return, whilst comfortably outperforming its benchmark during the June quarter. Whilst all of the Fund's five underlying managers lost ground, four managers outperformed their respective benchmarks, led by Schroders and Arrowstreet. The Fund continues to outperform its benchmark over the longer term, including over 5 years and since inception (annualised). (All returns are before fees.)
At a country level, allocation was postive overall on a relative basis over the period. Within developed markets, the main contributors were from an overweight exposure to the United Kingdom and an underweight exposure to the US. In emerging markets, holdings in South Africa and China were the main contributors to performance. The Fund's cash position, which is held mainly in US dollars, added value as markets retreated.
Sector allocation added significant value overall to relative returns. An overweight exposure to energy and underweight in IT were the key drivers to easily outweigh the detraction from an underweight exposure to utilities, which detracted most. Stock selection was also a strong contributor to relative returns, particularly positions in consumer discretionary, IT and health care stocks, while positions in industrials and materials stocks were the main detractors.
The largest individual stock contributors were the underweight exposures to Amazon.com and NVIDIA Corporation as well as having a nil position in Tesla. Online retailer and cloud services provider Amazon.com (-29%) shares fell after the company provided its latest quarterly update which included slowing revenue growth and lower forecasts for the upcoming quarter, as higher inflation, rising fuel and labour costs and global supply chain issues impacting company performance. Shares in USbased specialist technology company NVIDIA Corporation (-39%) and US-based automaker and energy storage company Tesla (-32%) suffered alongside many high-profile US technology companies, with heavy selling being fuelled by some investors fearing these companies would be Fund Performance some investors fearing these companies would be unable to sustain their prior outperformance if the economy softens.
The largest individual stock detractors were the overweight exposures in GXO Logistics, XPO Logistics and Newcrest Mining. US trucking transport company XPO Logistics (- 28%) and logistics solutions provider GXO Logistics (-34%) fell along with many other US road transport and related logistics companies as concerns escalated around higher interest rates and potential recession. Shares in Australian gold miner Newcrest Mining (-22%) suffered alongside other gold miners as the gold price softened, with soaring inflation and concerns about rising interest rates weighing.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wctf_a-6.pdfMarch, 2022
The Fund posted a negative return and underperformed its benchmark during the March quarter. In a declining market, the Fund's underlying managers lost ground, however Schroders and Arrowstreet outperforming their respective benchmarks. The Fund continues to outperform its benchmark over the long term, including since inception (annualised). (All returns are before fees.)
Country allocation detracted overall from relative returns over the period, due to the Fund's exposures to emerging markets. Within developed markets, the main positive contributors were an overweight exposure to Australia and an underweight position in Germany, whereas the main detractors were an underweight exposure to Canada and overweight position in the Netherlands. Emerging markets positions, primarily the small holdings in Russia saw heavy falls, more than offsetting the strong returns from holdings in Brazil. The Fund's cash position, which is held mainly in US dollars, added value as markets retreated.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wctf_a-5.pdfDecember, 2021
The Fund posted a positive return but underperformed its benchmark during the December quarter. Led by Magellan and Schroders, all of the Fund's five underlying managers gained ground, however none outperformed their respective benchmarks. The Fund continues to outperform its benchmark over the long term, including since inception (annualised). (All returns are before fees.) Country allocation detracted from relative returns over the period, primarily due to the Fund's exposures to emerging markets. Within developed markets, the main positive contributor an underweight exposure to Germany, however this was more than offset by the main detractors which were an underweight exposure to the US and being overweight to Japan. Emerging markets positions, in particular China and Russia also held back relative returns overall.
Sector allocation detracted overall from relative returns, primarily due to an underweight exposure to information technology and overweight to communication services, which more than offset the contributions from the overweight exposures to consumer discretionary and materials.
Stock selection also detracted from relative returns, particularly positions in information technology and consumer discretionary stocks, while positions in health care and communication services stocks contributed positively
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wctf_a-4.pdfJune, 2021
The Fund posted a positive return, however underperformed its benchmark (before fees) in the June quarter. All of the Fund's five underlying managers gained ground, with American Century outperforming the benchmark. The Fund continues to outperform its benchmark over the long term, including over 5 years and since inception (annualised). (All returns are before fees.) Country allocation was the main detractor from relative performance during the period. Within developed markets, the underweight exposure to the US and overweight position in Japan detracted, while positions in emerging markets, in particular South Africa and China, hampered the return. The Fund's cash position (primarily in US dollars held by Magellan) also detracted, as share markets rose strongly.
From a sector perspective, allocation detracted from the Fund's relative return, primarily due to the underweight exposure to information technology. Stock selection also detracted overall, with positions in information technology and consumer discretionary a considerable drag on performance, outweighing the positive contribution from stock selection within industrials. The largest individual detractors were having overweight positions in Naspers as well as an underwe
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wctf_a-3.pdfMarch, 2021
The Fund posted a positive return to outperform its benchmark (before fees) in the March quarter. All of the Fund's five underlying managers posted positive returns, while three managers comfortably outperformed their respective benchmarks, led by Schroders and Arrowstreet.
The Fund continues to outperform its benchmark over the long term, including over 5 years and since inception (annualised). (All returns are before fees.) Country allocation contributed to relative performance during the period. Whilst the positioning in developed markets was broadly neutral overall, the emerging markets' exposure, specifically in South Africa and China, added most value
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wctf_a-2.pdfDecember, 2020
The Fund posted a strong positive absolute return, however underperformed its benchmark (before fees) during the December quarter. Led by Orbis and Arrowstreet, four of the Fund's five underlying managers gained ground, whilst Magellan was a significant laggard. Orbis, Arrowstreet and American Century also outperformed their respective benchmarks, whilst Magellan and Schroders underperformed. The Fund continues to outperform its benchmark over the long term, including over 5 years and since inception (annualised). (All returns are before fees.) Country allocation detracted overall from relative performance during the period. The exposure to emerging markets specifically in China detracted most, as did the underweight allocation to France, more than offsetting the contributions from an underweight position in the US (a major contributor within developed markets) and holdings in South Korea. The Fund's cash position (primarily in US dollars held by Magellan) was also a significant detractor from the relative return, as share markets rose strongly. Sector allocation (excluding the cash position) was broadly neutral for relative returns. The underweight exposure to health care and an overweight in communication services were the main contributors, whilst being underweight financials and energy were the main detractors.
Stock selection added to relative returns overall. The largest individual contributors were overweight positions in XPO Logistics and Howmet Aerospace and having nil holding in salesforce.com.
US transport company XPO Logistics (+31%) rallied during the latter half of the period after the company released results for Q3 2020 which exceeded investor expectations, with sentiment being boosted further on optimism surrounding a COVID-19 vaccine.
Shares in US-based aerospace engineering manufacturer Howmet Aerospace (+59%) rallied on the news of promising developments in COVID-19 vaccine trials which bodes well for air travel. US cloud-based customer relationship management company salesforce.com (-17%) fell after some market participants expressed concern about the company's proposed acquisition of Slack Technologies. The largest individual detractors were overweight positions in Alibaba Group and Reckitt Benckiser Group and having nil holding in Tesla. Shares in Chinese e-commerce company Alibaba Group (-26%) suffered after affiliate Ant Group's suspension of its initial public offering, the release of mixed results for Q3 2020, Chinese authorities said they would investigate the company for "suspected monopolistic conduct" and key founder Jack Ma disappeared after criticising financial authorities.
Anglo-Dutch consumer health and hygiene products company Reckitt Benckiser Group (-15%) saw its share price fall following the company's announcement of results for Q3 2020 where sales were lower than investor expectations and company management lowered its previous forecasts for full year revenue and profit margins. Shares in electric vehicle and clean energy company Tesla (+53%) soared as the stock was included in the S&P 500 index and on the back of several broker analyst upgrades for the company's prospects on the basis of a surge in overall electric vehicle demand.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wctf_a-1.pdfSeptember, 2020
The Fund posted a positive absolute return, however underperformed its benchmark (before fees) during the September quarter. All of the Fund's five underlying managers gained ground. American Century posted the strongest return and along with Magellan these managers outperformed their respective benchmarks. The Fund continues to outperform its benchmark over the long term, including over 3 and 5 years, and since inception (annualised). (All returns are before fees.) Country allocation was a slight contributor overall to relative performance during the period. The exposures to emerging markets particularly in China added most value, as did underweight allocations to France and Canada which were the main contributors within developed markets. Conversely, the Fund's underweight exposure to the US and its cash position (primarily in US dollars held by Magellan) were the main detractors from the relative return during the period, as share markets generally rose.
Sector allocation added value. Most active positions contributed, with an overweight position in consumer discretionary and underweight exposures to energy and financials contributing most, outweighing the negative effect of an underweight exposure to information technology which was the main detractor.
Stock selection detracted overall from performance and was the main drag on returns. The largest individual detractors were underweight positions in Apple, Tesla and NVIDIA Corporation.
US technology giant Apple (+22%) saw its share price benefit from the announcement of strong results for the June 2020 quarter, with the stock price being further supported by news it may launch discounted video streaming content bundling. Shares in electric vehicle and clean energy company Tesla (+91%) soared to record highs during August, supported by its Q2 2020 results, which were significantly better than expected, and as investors anticipated smaller share parcels would be in high demand as a result of the US-based graphicscompany stock split which occurred in August.processing chip
ticker: AMP0824AU
commentary_block: Array
factsheet_url:
https://www.ampcapital.com/au/en/investments/funds/other-funds/specialist-international-share-fund
release_schedule: Quarterly
fund_features:
AMP Capital Specialist International Share is a reasonable way to get exposure to core global equities, but we prefer others in this space. The strategy is a multi-manager approach representing a mix of distinct styles and approaches targeting a style-neutral portfolio.
- The portfolio is built with a barbell approach by dividing the underlying managers into core, low-beta, and pro-cyclical/higher-beta exposures.
- The managers are assessed on various criteria such as business structure, consistency and sustainability, team and its alignment, performance track record, and fees and capacity.
- The current roster includes solid managers like Magellan (20%), American Century (15%), Arrowstreet (30%), Orbis (15%), and Schroders (20%).
manager_contact_details: Array
asset_class: Foreign Equity
asset_category: Large Blend - Specialised
peer_benchmark: Foreign Equity - Large Specialised Index
broad_market_index: Developed -World Index
structure: Managed Fund