December, 2022
Whilst the quarter was challenging across most major asset classes in the Fund, both absolute and relative performance was driven by our international equities portfolio, which fell 2.3% against its MSCI World Index ex AU benchmark, which returned 0.3%. This was partially offset by positive absolute and relative performance in our domestic equities portfolio, rising 1.3% against the benchmark (the S&P/ASX 200) which grew by 0.4%.
Both the absolute and relative performance was driven by our international equities portfolio. After starting the quarter off strongly, with the MSCI World ex AU index rising 12.2% by mid-August, global markets began to sell off as the release of CPI data in the US showed inflation of 9.1% exceeding expectations by 0.3%. Markets continued to sell-off through to the end of September. In local currency terms, the global index fell 4.4%, however our unhedged currency exposure cushioned returns as the AUD fell from US$0.69 to US$0.64, resulting in an unhedged return of 0.3% for the benchmark and -2.3% for our portfolio.
The Industrials sector within our international equities portfolio was one of the few sectors that made a meaningful contribution to relative performance, as well as being the largest contributor to absolute performance, rising 3.5% against the benchmark’s 1.1%.
File:September, 2022
Whilst the quarter was challenging across most major asset classes in the Fund, both absolute and relative performance was driven by our international equities portfolio, which fell 2.3% against its MSCI World Index ex AU benchmark, which returned 0.3%. This was partially offset by positive absolute and relative performance in our domestic equities portfolio, rising 1.3% against the benchmark (the S&P/ASX 200) which grew by 0.4%.
Both the absolute and relative performance was driven by our international equities portfolio. After starting the quarter off strongly, with the MSCI World ex AU index rising 12.2% by mid-August, global markets began to sell off as the release of CPI data in the US showed inflation of 9.1% exceeding expectations by 0.3%. Markets continued to sell-off through to the end of September. In local currency terms, the global index fell 4.4%, however our unhedged currency exposure cushioned returns as the AUD fell from US$0.69 to US$0.64, resulting in an unhedged return of 0.3% for the benchmark and -2.3% for our portfolio.
The Industrials sector within our international equities portfolio was one of the few sectors that made a meaningful contribution to relative performance, as well as being the largest contributor to absolute performance, rising 3.5% against the benchmark’s 1.1%.
The largest detractor to both relative and absolute performance was in the Communication Services sector within the international equities portfolio, due to both underperformance and an overweight position. The sector returned -11.5% to the portfolio, against the benchmark return of -6.7%. Alphabet’s decline of 6.1% was the largest detractor within the sector due to its significant weighting in the portfolio.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Balanced-Fund-September-2022-Update.pdfJune, 2021
Global markets posted another strong quarter with the MSCI World Index appreciating 7.7%. This was driven by the US where the S&P 500 rose 8.6%, and closely followed by Europe (MSCI Europe ex UK) which rose 7.1%. Australia kept pace, the ASX 200 was up 8.3% driven by cyclicals. In Asia performance was subdued relative to other regions; including the Nikkei which was down 1.2%. Performance in global equity markets was driven by improved economic activity, the roll out of the vaccination program and strong monetary and fiscal support. This improved economic activity was reflected in a rising Purchasing Managers’ Index. Unemployment rates have fallen faster than anticipated, and YoY inflation rates have continued to rise – prompting investors to pay close attention to how Central Banks will react. However, despite the inflation concerns bond yields fell over the quarter with questions remaining around whether the rise in inflation will be sustained.
The Balanced Fund returned 5.7% (Wholesale class: 5.9%) over the quarter, driven by the equity’s portfolio. The Domestic Equities holdings were the largest contributor to performance, returning 10% against its benchmark, the S&P ASX 200, which returned 8.3%. Materials led the outperformance where the portfolios lithium holdings, Pilbara Minerals and Orocobre, appreciated 38.8% and 35.9% respectively. The portfolio’s overweight to the Information Technology sector was another strong contributor to outperformance, returning 13.7% against the benchmark return of 12.1%.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/174702974.pdfDecember, 2020
The December quarter was a strong quarter for equity markets, with most major markets rising over 10%. The MSCI World rose 12.5% over the 3-month period. This was largely driven by the S&P 500, which rose 12.1%, however most major markets saw similar returns, including the S&P/ASX 200 up 13.7%, the FTSE 100 up 10.9%, the MSCI Europe ex UK up 10.2% and MSCI Asia rising 14.9%. Progress on the development of a COVID-19 vaccine, Biden’s election victory and the anticipation of further fiscal stimulus were the main drivers of investor optimism. The Balanced Fund returned 7.9% (Wholesale Fund 8.2%) over the 3-month period, outperforming its benchmark by 1.7% (2.0% Wholesale Fund). The Fund’s Domestic Equities portfolio was the main driver of performance, returning 18.6% against its benchmark return of 13.7%. Financials were a significant contributor to performance, with banks recovering strongly over the quarter. Materials also contributed, driven by Pilbara Minerals, which benefited from an improved outlook for the demand for lithium as electric carmakers ramp up production, driving the stock up 187%. The International Equities portfolio returned 7.4% against its benchmark return of 5.7%. Financials, Industrials and IT were the main contributors to performance.The Fund’s Property holdings returned 4.1%, outperforming its benchmark by 1.8%, as the portfolio’s healthcare exposure benefited from increased investor interest in the sector.Fixed Income had a slight negative return with bond yields ending the quarter slightly higher as the macro outlook improved.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/163872911.pdfasset_class: Multi-Asset
asset_category: 61-80% Growth Assets - Diversified
peer_benchmark: Multi-Asset - 61-80% Diversified Index
broad_market_index: Multi-Asset Growth Investor Index
manager_contact_details: Array
ticker: AUG0017AU
release_schedule: Quarterly
commentary_block: Array
factsheet_url:
fund_features:
Australian Ethical Balanced Fund (Wholesale) aims to provide investors with a balance between capital growth and a moderate level of income through a diversified portfolio of assets that supports the Australian Ethical Charter. The opportunity to invest in a diversified portfolio of asset types and markets to reduce the volatility of returns. Asset classes include, but are not limited to, Australian and international shares, property and fixed income securities.
structure: Managed Fund