September, 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: AMP0825AU
commentary_block: Array
factsheet_url:
asset_class: Foreign Equity
asset_category: Currency Hedged
peer_benchmark: Foreign Equity - Currency Hedged Index
broad_market_index: Developed -World Index
structure: Managed Fund