December, 2022
The Fund posted a positive return and underperformed its benchmark over the December quarter. There was significant divergence in the Fund's underlying managers' performance. All four managers gained ground as well as underperforming the benchmark return, with Eiger and Elly Griffiths faring the best on a relative basis.
The Fund continues to outperform its benchmark over the longer term, including over 3 and 5 years, and since inception.
Sector allocation as well as stock selection hampered the relative returns during the period.
Regarding sector allocation, the main detractors were the underweight exposures to materials and real estate and overweight position in IT. The main contributor was an underweight exposure to financials.
Turning to stock selection, the Fund's positions in most sectors detracted from returns, with positions in consumer discretionary, health care and communication services accounting for most of the underperformance. On the flipside, IT stock positions were strong contributors.
The largest individual contributor to relative performance was the overweight holding in workforce productivity software supplier Nitro Software (+38%), which saw its share price surge following a takeover bid by Potentia Capital which then drew a high counter-bid from KKR-owned US productivity company Alludo. Other major contributors included nil positions in lithium producer ioneer Ltd (-40%) and investment manager Magellan Financial Group (-21%).
The largest individual detractor from relative performance was the overweight holding in gas producer Cooper Energy (-27%). The company's share price came under pressure alongside others in the local gas industry after the government passed legislation imposing temporary price caps on gas and coal in response to soaring gas prices.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wfds_a-8.pdfSeptember, 2022
The Fund posted a positive return and comfortably outperformed its benchmark over the September quarter. There was significant divergence in returns in the Fund's underlying managers, with two of the Fund's four managers gaining ground. Eiger was the standout performer and Elly Griffiths also added significant value with each also exceeding the benchmark return. The Fund continues to outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years, and since inception. (All returns are before fees.) Sector allocation as well as stock selection contributed to relative returns. Regarding sector allocation, most of the Fund's positions enhanced returns, with the main contributors being the underweight exposure to real estate and overweight positions in energy (the best performing sector during the period) and industrials. There were no material detractors.
Turning to stock selection, the Fund's positions in all sectors contributed except for exposures within health care and industrials. Stocks held in materials accounted for most of the outperformance, with IT, real estate, financials and communication services stocks also adding to relative returns.
The largest individual contributor to relative performance was the nil position in lithium and tin explorer AVZ Minerals (-100%), with the extended ongoing voluntary share trading halt relating to its mining and exploration rights for the Manono Lithium and Tin Project in the Congo also seeing its removal from the ASX300 market index. Other major contributors included stellar performers lithium and tantalite miner Pilbara Minerals (+99%) and location-based service provider Life360 (+74%).
The largest individual detractor from relative performance was the underweight position in Liontown Resources. The lithium producer (+41%) saw its share price continue to be buoyed by the ongoing demand for battery minerals required for electric vehicles. Other detractors included overweight positions in financials services and tech provider IRESS (-21%) and remote site aviation service provider Alliance Aviation Services (-13%).
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wfds_a-7.pdfJune, 2022
Company NOVONIX (-63%) and an underweight position in cloud-based connectivity provider The Fund posted a negative return and underperformed its benchmark over the June quarter. All of the Fund's four underlying managers lost ground, with Spheria outperforming the benchmark. The Fund continues to comfortably outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years, and since inception. (All returns are before fees.)
Sector allocation contributed to relative returns, whereas stock selection detracted overall. Regarding sector allocation, the main contributor was the underweight exposure to materials (which significantly lagged other parts of the market). As the market retreated, the Fund's cash position also enhanced returns. The main detractors from relative returns were underweight exposures to real estate and energy (which was the only small companies sector to post a positive return).
Regarding stock selection, the main detractors from relative returns were positions in communication services and consumer discretionary, while the main contributors were positions in IT stocks.
The largest individual detractor from relative performance was the nil position in Whitehaven Coal. The coal miner (+20%) saw its share price continue to benefit as coal prices globally remained elevated, supported by energy demand and the impact of supply disruptions. Other detractors included an overweight position in location-based service provider Life360 (-52%) and an underweight exposure to telecommunications infrastructure company Uniti Group (+4%).
The largest individual contributor to relative performance was the nil position in lithium explorer and developer Lake Resources (-61%), which saw its shares suffer following the shock resignation of its chief executive officer and managing director, prompting investor fears of underlying issues within the company. Other positive contributors included the nil position in battery materials and technology Megaport (-61%).
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wfds_a-6.pdfMarch, 2022
The Fund posted a negative return and underperformed its benchmark over the March quarter. All four of the Fund's underlying managers lost ground and two outperformed the benchmark, led by Spheria and Elly Griffiths Group. Eiger Asset Management lagged, following a prolonged period of stellar performance. The Fund continues to significantly outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years, and since inception. (All returns are before fees.) Sector allocation as well as stock selection detracted from relative returns.
Regarding sector allocation, the main detractors from relative returns were underweight exposures to materials and energy (which rallied significantly) and an overweight exposure to consumer discretionary. The main contributors were an underweight exposure to financials and overweight to industrials. Regarding stock selection, the main detractors from relative returns were positions in energy and materials, while the main contributors were positions in health care and financials stocks.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wfds_a-5.pdfDecember, 2021
The Fund posted a positive return and comfortably outperformed its benchmark over the December quarter. All four of the Fund's underlying managers posted positive returns and three outperformed the benchmark, led by Elly Griffiths Group. Eiger Asset Management lagged, following a prolonged period of stellar performance. The Fund continues to significantly outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years, and since inception. (All returns are before fees.) Stock selection was the driver of the outperformance, while sector allocation detracted from relative returns. Regarding sector allocation, the main detractors from relative returns were an underweight exposure to materials and an overweight exposure to consumer discretionary. The main contributors were underweight exposures to financials and energy. Regarding stock selection, the main contributors to relative returns were positions in industrials and communication services, while the main detractors were positions in real estate and information technology stocks.
The largest individual contributor to relative performance was an overweight position in Class Ltd. The SMSF administration software company soared (+57%) on news of a takeover bid from HUB24, with the offer coming at a significant premium to Class' previous closing share price and other favourable terms. Other positive contributors included an underweight (not held) position in digital retail payments company Zip Co which fell heavily (-39%) and an overweight position in emerging lithium and tantalum miner Pilbara Minerals which rallied (+22%) over the period
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wfds_a-4.pdfJune, 2021
The largest individual contributor to relative performance was an overweight position in City Chic Collective. The plus-size women's clothing retailer soared (+37.9%) as it continues to benefit from its significant online presence throughout the pandemic period.
The company is also benefitting from its growing international presence, after it made some strategic acquisitions in the US and UK late last year. Other positive contributors included overweight positions in building services company Johns Lyng Group which rallied (+32.1%) and online consumer credit business MoneyMe which shot higher (+62.3%) over the period.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wfds_a-3.pdfMarch, 2021
The Fund posted a strong positive return and outperformed its benchmark over the March quarter. All four of the Fund's underlying managers posted positive returns and Eiger, Spheria and Perennial outperformed the benchmark. The Fund continues to strongly outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years, and since inception (annualised). (All returns are before fees.)
Stock selection was the main driver of the outperformance, while sector allocation detracted from relative returns. Regarding sector allocation, the main detractors from relative returns were an overweight exposure to industrials and an underweight exposure to financials, while the main contributors were an underweight exposure to real estate and an overweight exposure to consumer discretionary
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wfds_a-2.pdfDecember, 2020
The Fund posted a very strong positive absolute return and outperformed its benchmark over the December quarter. All four of the Fund's underlying managers posted strong positive absolute returns and Spheria, Eiger and Perennial outperformed the benchmark. The Fund continues to outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years, and since inception (annualised). (All returns are before fees.)
Stock selection was the main driver of the outperformance, while sector allocation detracted from relative returns. Regarding sector allocation, the main detractors from relative returns were underweight exposures to financials and materials, and overweight exposures to information technology and healthcare. The main contributor was an underweight exposure to real estate. Regarding stock selection, the main contributors to relative returns were positions in materials, consumer discretionary, health care and communication services stocks. The main detractors were positions in information technology, financial and consumer staples stocks.
The largest individual contributor to relative performance was an overweight position in Pilbara Minerals. The mining company rocketed higher (+187.4%) as excitement about electric cars drove up demand for lithium, which the company mines in Pilbara, Western Australia. Other positive contributors included an underweight position in regenerative medicine company Mesoblast which dropped sharply (-55.7%) and an overweight position in mining company Lynas Rare Earths which soared (+71.6%) over the period.
The largest individual detractor from relative performance was an underweight position in Virgin Money UK. The financial services provider shot higher (+83.0%) mainly due to optimism around the availability of COVID-19 vaccines, and despite releasing very disappointing full-year 2020 results. Other detractors included an overweight position in food delivery service Marley Spoon which fell (- 2.9%) and an underweight position in mining company Mineral Resources which rallied (+33.7%).
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/ffs-wfds_a-1.pdfSeptember, 2020
The Fund posted a very strong positive absolute return and outperformed its benchmark over the September quarter. All four of the Fund's underlying managers posted strong positive absolute returns and outperformed the benchmark by wide margins. The Fund continues to outperform its benchmark over the longer term, including over 1, 2, 3 and 5 years, and since inception (annualised). (All returns are before fees.)
Stock selection was the main driver of the outperformance and sector allocation also contributed positively. Regarding sector allocation, the main contributors to relative returns were an overweight exposure to consumer discretionary, and underweight exposures to energy, real estate and financials. The main detractor was an overweight exposure to industrials.
Regarding stock selection, the main contributors to relative returns were positions in information technology, industrials, health care consumer discretionary and financial stocks, while the only detractor was positions in communication services stocks.
The largest individual contributor to relative performance was an overweight position in Marley Spoon. The food delivery service rallied strongly (+50.3%) after providing a healthy quarterly update, with revenue, active customers and total orders more than doubling compared to the same period last year. Other positive contributors included overweight positions in homewares retailer Adairs which continued to rally strongly (+46.2%) and Corporate Travel Management which soared (+80.6%) over the period.
ticker: AMP0973AU
commentary_block: Array
factsheet_url:
release_schedule: Quarterly
fund_features:
AMP Capital Specialist Australian Small Companies Fund provides a sensible exposure to domestic small-cap equities. It’s aiming to provide total returns (income and capital growth) after costs and before tax, above the performance benchmark on a rolling 3 year basis.
- The benchmark for the Fund is the S&P / ASX Small Ordinaries Accumulation Index.
- The strategy is a multi-manager approach representing a mix of various styles to create a style-neutral portfolio.
- The current portfolio allocates to growth-biased Eley Griffiths Group (20%), both value-oriented Perennial (30%) and Spheria (20%), and growth-at-reasonable-price Eiger Capital (30%).
manager_contact_details: Array
asset_class: Domestic Equity
asset_category: Australian Small Cap
peer_benchmark: Domestic Equity - Small Cap Index
broad_market_index: ASX Index Small Ordinaries Index
structure: Managed Fund