March, 2022
The Fund returned +5.02% for the month of March, underperforming the benchmark by 0.24%. The largest contributors to relative performance included overweight positions in Uniti Group (UWL), Pilbara Minerals Ltd (PLS) and Nickel Mines Ltd (NIC).
Uniti Group (UWL) outperformed after the company received two takeover offers in the month. The initial bid was from infrastructure and property-focused asset manager, Morrison & Co. The bid valued the company at A$3.06bn, a 43% premium on UWL’s previous closing price.Nickel Mines Ltd (NIC) underperformed after there was uncertainty over the potential impact on Tsingshan Holding Co., a joint venture partner of the company, of margin calls on losses from nickel derivatives.
The largest detractors from relative performance included an overweight position in Capitol Health (CAJ), and underweight positions in Lake Resources (LKE) and AVZ Minerals (AVZ). Underweight holdings in lithium project developers Lake Resources (LKE) and AVZ Minerals (AVZ) detracted from performance. The strong performance in these names was driven by positive investor sentiment for the lithium price.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/186261982.pdfJanuary, 2022
The AMP Capital Australian Emerging Companies Fund declined 7.0% in January, outperforming the benchmark by 2.0%. The fund’s long-term performance remains strong, outperforming the benchmark over multiple time periods, including delivering an outperformance of 6.6% pa since inception.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/183914127.pdfDecember, 2021
The AMP Capital Australian Emerging Companies Fund rose 4.5% in December, outperforming the benchmark by 3.1%. The Fund’s long-term performance remains strong, outperforming the benchmark over multiple time periods, including delivering outperformance of 6.2% pa since inception.
Supply chain and cost pressures, coupled with Omicron led labour shortages, make it likely that we are in for a weaker than usual reporting season in February. Trading updates and outlook statements have the potential to be worse than expected, and the short-term risk factor in our process has led to the exit of stocks with a high risk of short-term disappointment.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/182658362.pdfNovember, 2021
The AMP Capital Australian Emerging Companies Fund declined 1.6% in November, underperforming the benchmark by 1.3%. The Fund’s long-term performance remains strong, outperforming the benchmark over multiple time periods, including delivering an outperformance of 5.3% pa since inception.
The team has hosted a number of company meetings during the month as we look through the noise of a very busy IPO and capital raising period. This has led to a few new positions initiated in the fund, in addition to top ups of existing positions that we believe have been unfairly sold down. The portfolio is well balanced in relation to growth, value and quality factors, with a focus on medium-term earnings delivery and aversion to short-term downgrades. In addition, the fund continues to be well positioned with superior sustainability metrics compared to the benchmark.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/181279710-1.pdfSeptember, 2021
The AMP Capital Australian Emerging Companies Fund returned -2.9% in September, underperforming the benchmark by 0.7%. The Fund’s long-term performance remains strong, outperforming the benchmark over multiple time periods, including delivering an outperformance of 4.9% pa since inception.
September was the second consecutive month where earnings did not drive share prices – yet again, revisions for the stocks held in the fund exceeded that of the benchmark but wasn’t rewarded performance wise. We believe this to be temporary and earnings will once again become the most important factor as the market looks past the short-term and considers more medium-term drivers.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/180017684.pdfAugust, 2021
The AMP Capital Australian Emerging Companies Fund returned 1.93% in August, underperforming the benchmark by 3.05%. The Fund’s long-term performance remains strong, outperforming the benchmark over multiple time periods, including delivering an outperformance of 5.5% pa since inception.
August was not a month where earnings drove share prices – the earnings revisions for the stocks held in the fund exceeded that of the benchmark but wasn’t rewarded performance-wise. We believe this to be temporary and earnings will once again become the most important factor as the market looks past the short-term and considers more medium-term drivers. There were minimal changes to the fund during the month, and it continues to be well positioned with superior earnings growth and sustainability metrics compared to the benchmark.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/179087608.pdfJuly, 2021
The AMP Capital Australian Emerging Companies Fund returned 1.4% in July, outperforming the benchmark by +0.8%. The Fund’s long-term performance remains strong, outperforming the benchmark over multiple time periods, including delivering an outperformance of +6.8% pa since inception.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/175737093.pdfJune, 2021
The S&P/ASX Small Ordinaries Index rose 3.1% in June and outperformed the S&P/ASX 200 Index by 0.8% • Inflation expectations reduced and the slide in treasury yields resulted in the rotation into growth/technology and away from the reflation beneficiaries • Commodity prices came under pressure given the rising US dollar, which was caused by a more hawkish update from the US Federal Reserve - small resource companies subsequently underperformed with gold names particularly hard hit.
The AMP Capital Australian Emerging Companies Fund returned 2.5% in June, underperforming the benchmark by 0.6%. The Fund’s long-term performance remains strong, outperforming the benchmark over multiple time periods, including delivering an outperformance of 6.7% pa since inception.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/174209913.pdfApril, 2021
The AMP Capital Australian Emerging Companies Fund returned 6.0% in April and outperforming the benchmark by 1.0%. The Fund’s long-term performance remains strong, outperforming the benchmark over multiple time periods, including delivering an outperformance of 8.08% pa since inception.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/171128272.pdfDecember, 2020
The AMP Capital Australian Emerging Companies Fund returned 5.08% in December, outperforming the benchmark by 2.32%. The Fund’s performance for the 2020 calendar year has been notably strong in a challenging market environment, returning 19.96% and outperforming the benchmark by +10.75%. Long-term performance remains strong, outperforming the benchmark over multiple time periods, including delivering an outperformance of 7.53% pa since inception.
Over the month, the top stock contributors included Seven West Media, Asaleo Care and Mesoblast. Seven West Media continued to rally given strong free-to-air booking demand, cost controls and pending asset sales which is expected to improve the company’s financial position. Asaleo Care received a takeover bid from its major shareholder, Essity, although expect an increased bid to eventuate for the transaction to be completed.
Mesoblast (not held) announced a disappointing update from its Remestemcel-L trial in COVID-19 patients, being unable to meet the mortality reduction endpoint. Key stock detractors included IGO, Austal and Catapult Group International. IGO’s acquisition of the Greenbushes spodumene mine and interest in the Kwinana lithium hydroxide plant was viewed positively by the market – the Fund had a nil holding at the start of the month although initiated a position as part of the capital raising for the acquisition. Austal and Catapult lagged the market given the negative impact from the depreciating US dollar impacting their offshore earnings.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/163537598.pdfticker: AMP6265AU
release_schedule: Quarterly
commentary_block: Array
factsheet_url:
https://www.ampcapital.com/au/en/personal-investor/pricing-and-performance
manager_contact_details: Array
fund_features:
AMP Capital Australian Emerging Companies A aims to outperform the S&P/ASX Small Ordinaries Accumulation Index over rolling 5-year periods. The Fund employs a disciplined fundamental research process to identify undervalued companies where we have conviction in medium-term earnings delivery and are supported by sustainable business models.
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
- Phone : 1800 658 404
- Website : https://www.ampcapital.com/au/en/adviser-home
- Contact Email : clientservices@ampcapital.com