January, 2023
The BT Wholesale Multi-manager High Growth Fund produced a positive return over the month of January. Risk sentiment improved over the month as the market saw US headline CPI continue to trend down to 6.5% YoY in December. Core US CPI came in line with expectation at 0.3% MoM and 5.7% YoY.
Investors speculated that the Fed would decelerate the pace of rate hikes and lift the target cash rate by 25bps in the February 1 FOMC meeting. Domestically, headline inflation in December increased to 7.8% YoY, above consensus of 7.6%. The domestic equity market, as represented by the S&P/ ASX 300 Accumulation Index, returned 6.3% over the month. International Equities, as measured by the MSCI World ex Australia Net Return AUD Hedged Index, returned 6.2%.
Unhedged International Equities returned 3.0%, underperforming their hedged equivalent, as the AUD strengthened against its major global peers. Unhedged Emerging Market Equities returned 3.8% over the month, Chinese equities continued to rally, the offshore stocks outperformed as China’s reopening boosted up investors’ sentiment. Domestic listed property as measured by the S&P/ASX 300 A-REIT Index returned 8.1% and global listed property as measured by the FTSE EPRA/NAREIT Developed AUD Hedged Net Total Return Index, returned 8.0% over the month. Funds allocated to growth assets outperformed those with a higher allocation to defensive assets over the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/BT-Wholesale-Funds-BT-Wholesale-Multi-manager-High-Growth-Fund-BTA0246AU-factsheet-6.pdfDecember, 2022
The BT Wholesale Multi-manager High Growth Fund produced a negative return over the month of December. Following four consecutive hikes of 75bps this year, the US Federal Reserve decelerated the rate hike in December and lifted Federal Funds Target Rate by 50 basis points to a range between 4.25% and 4.50%. Despite another downside surprise on US November CPI, Fed officials reiterated the hawkish stance and indicated a higher terminal rate of above 5.00% over the next year. The European Central Bank delivered a 50 basis points hike and increased its deposit rate to 2.00% in line with market expectations.
The Reserve Bank of Australia raised the cash rate target by 25 basis points to 3.10%. Risk sentiment was weak heading into the year end, with market concerns around recession risk heightened, signalled by contractionary Service PMI readings in the US. The domestic equity market, as represented by the S&P/ ASX 300 Accumulation Index, returned -3.3% over the month. International Equities, as measured by the MSCI World ex Australia Net Return AUD Hedged Index, returned -5.2%. Unhedged international equities slightly underperformed hedged exposure due to a weaker USD, returning -5.5%.
Emerging Market Equities, as measured by the MSCI Emerging Markets EM AUD Net Total Return Index, returned -2.6%. Chinese offshore equities outperformed as the Chinese government shifts its focus away from Covid containment back towards economic growth. Domestic listed property as measured by the S&P/ASX 300 A-REIT Index returned -4.0% and global listed property as measured by the FTSE EPRA/NAREIT Developed AUD Hedged Net Total Return Index, returned -3.8% over the month. Over the month both growth and defensive oriented portfolios had negative results.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/BT-Wholesale-Funds-BT-Wholesale-Multi-manager-High-Growth-Fund-BTA0246AU-factsheet-5.pdfNovember, 2022
The BT Wholesale Multi-manager High Growth Fund produced a positive return over the month of November. A lower-than-expected October US inflation print triggered a rally in stock markets as interest rate expectations shifted lower. This was despite the US Federal Reserve hiking its cash rate target by another 75bps to 3.75-4.00% and its hawkish messaging suggesting a higher terminal rate of above 5%.
The US mid-term election concluded with Republicans taking control of the House of Representatives and the Democrats retaining control of the Senate. Domestically, the Reserve Bank of Australia delivered another 25bps rate hike, the first November rate rise since 2010. The Australian Bureau of Statistics released a new monthly CPI indicator, showing a headline inflation of 6.9% year-on-year to October, below market expectations.
The domestic equity market, as represented by the S&P/ ASX 300 Accumulation Index, returned 6.5% over the month. International Equities, as measured by the MSCI World ex Australia Net Return AUD Hedged Index, returned 5.4%. Unhedged international equities returned 2.0%, underperforming hedged exposure as the AUD appreciated against its major global peers.
Chinese offshore equities had a sharp rebound with the Hang Seng index rallying 26.6% over the month. Market sentiment improved with Chinese authorities recalibrating covid restriction rules and laying out measures to address the liquidity crunch in the property sector. As a result, emerging market equities outperformed, returning 9.6% in AUD terms. Domestic listed property as measured by the S&P/ASX 300 A-REIT Index returned 5.8% and global listed property as measured by the FTSE EPRA/NAREIT Developed AUD Hedged Net Total Return Index, returned 5.0% over the month. Funds allocated to growth assets outperformed those with a higher allocation to defensive assets over the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/BT-Wholesale-Funds-BT-Wholesale-Multi-manager-High-Growth-Fund-BTA0246AU-factsheet-4.pdfOctober, 2022
The BT Wholesale Multi-manager High Growth Fund produced a positive return over the month of October. Risk sentiment improved over the month despite another higher-than-expected increase in US Core CPI of 6.6% YoY, and a Headline CPI increase of 8.2% YoY in September. Investors speculated a dovish pivot from the Fed post the November and December FOMC, where rate increases are expected to be kept at the current pace.
Domestically, the Reserve Bank of Australia has slowed the pace of rate hikes and raised the cash rate target by 25 basis points, meanwhile headline inflation was reported at 7.3% YoY in the September quarter, expecting to peak in the December quarter of 2022. The domestic equity market, as represented by the S&P/ ASX 300 Accumulation Index, returned 6.0% over the month. International Equities, as measured by the MSCI World ex Australia Net Return AUD Hedged Index, returned 7.2%. Unhedged International Equities returned 7.8%, outperforming hedged exposure as the AUD slightly weakened against its major global peers. Emerging Market Equities returned -2.6% over the month, China has significantly underperformed, with investors disappointed by its unwavering insistence on COVID-zero measures post its 20th National Congress. Listed properties partially recovered from the previous drawdown.
Domestic listed property as measured by the S&P/ASX 300 A-REIT Index returned 9.9% and global listed property as measured by the FTSE EPRA/NAREIT Developed AUD Hedged Net Total Return Index, returned 3.1% over the month. Funds allocated to growth assets outperformed those with a higher allocation to defensive assets over the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/BT-Wholesale-Funds-BT-Wholesale-Multi-manager-High-Growth-Fund-BTA0246AU-factsheet-3.pdfSeptember, 2022
The BT Wholesale Multi-manager High Growth Fund produced a negative return over the month of September.
Higher-than-expected US inflation has spurred a risk asset sell-off as the market recalibrated to higher interest rate expectations of 4% and above in the US by the end of this year with less likelihood of rate cuts in 2023. The Federal Reserve delivered its third consecutive 75 basis points rate hike and moved its target rate to a range of 3.00%-3.25%, the highest level since 2008. Energy concerns continued to plague Europe, German CPI was reported at 10.9% year on year and pressures remained for European central banks to turn more hawkish. Financial markets turmoil was further fuelled by the UK government’s fiscal plan and its ramification on UK gilts market.
The domestic equity market, as represented by the S&P/ ASX 300 Accumulation Index, returned -6.3% over the month. International Equities, as measured by the MSCI World ex Australia Net Return AUD Hedged Index, returned -8.9%. Unhedged international equities returned -3.2%, outperforming hedged exposure as a result of a stronger USD. Emerging Market Equities, as measured by the MSCI Emerging Markets EM AUD Net Total Return Index, returned -5.9%.
Listed properties sold off as higher interest rates weighed on valuations. Domestic listed property as measured by the S&P/ASX 300 A-REIT Index returned -13.6% and global listed property as measured by the FTSE EPRA/NAREIT Developed AUD Hedged Net Total Return Index, returned -11.8% over the month.
Over the month both growth and defensive oriented portfolios had negative results.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/BT-Wholesale-Funds-BT-Wholesale-Multi-manager-High-Growth-Fund-BTA0246AU-factsheet-2.pdfAugust, 2022
The BT Wholesale Multi-manager High Growth Fund produced a negative return over the month of August.
Both the US Federal Reserve and the European Central Bank (ECB) continued their hawkish rhetoric and remained committed to aggressive interest rate hikes. Europe continued to suffer from high energy prices due to the suspension of Russian crude oil and gas supply. The German Producer Prices (PPI) reported its highest-onrecord increase in August and the energy supply problem was further exacerbated by the record-breaking droughts from prolonged heatwaves across Europe. Geopolitical risk in the Asia-Pacific region elevated as China carried out military exercises surrounding Taiwan following the US House of Representative Nancy Pelosi’s visit to Taiwan. Led by the strong Energy and Materials sector returns, the domestic equity market, as represented by the S&P/ASX 300 Accumulation Index, returned 1.2% over the month. International Equities, as measured by the MSCI World ex Australia Net Return AUD Hedged Index, returned -3.6%. The USD further strengthened as the safe haven currency, unhedged international equities outperformed hedged exposures, returning -2.5%.
Unhedged Emerging Market equities, as represented by the MSCI Emerging Markets Net Total Return AUD Index, returned 2.2% over the month. Listed property valuations continued to face a headwind from rising interest rates. Domestic listed property, as measured by the S&P/ASX 300 A-REIT Index, returned -3.6% and global listed property as measured by the FTSE EPRA/NAREIT Developed AUD Hedged Net Total Return Index, returned -5.7% over the month. Funds with allocations to both growth and defensive assets had negative results over the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/BT-Wholesale-Funds-BT-Wholesale-Multi-manager-High-Growth-Fund-BTA0246AU-factsheet-1.pdfJuly, 2022
The BT Wholesale Multi-manager High Growth Fund produced a positive return over the month of July. Risk sentiment improved despite another uptick in the US headline CPI to 9.1% YoY in July, and a second consecutive 75bps interest rate hike from the US Federal Reserve. Investors speculated a peak in headline inflation and a less hawkish policy setting going forward, following a period of mixed economic signals and the US entering a technical recession over the first half of 2022. Domestically, the Reserve Bank of Australia continued to raise interest rates by 50bps to help contain higher inflation, currently reported as 6.1% YoY in the second quarter of 2022.
The domestic equity market, as represented by the S&P/ ASX 300 Accumulation Index, returned 6.0% over the month. International Equities, as measured by the MSCI World ex Australia Net Return AUD Hedged Index, returned 8.0%. Unhedged international equities returned 6.4%, underperforming a hedged exposure as the AUD appreciated against its major global peers. Emerging Market Equities underperformed, returning -1.7%. Listed property rallied after a large drawdown over the previous quarter. Domestic listed property, as measured by the S&P/ASX 300 A-REIT Index, returned 11.8% and global listed property, as measured by the FTSE EPRA/NAREIT Developed AUD Hedged Net Total Return Index, returned 7.7% over the month. Funds allocated to growth assets outperformed those with a higher allocation to defensive assets over the month.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/BT-Wholesale-Funds-BT-Wholesale-Multi-manager-High-Growth-Fund-BTA0246AU-factsheet.pdfAugust, 2021
The BT Wholesale Multi-manager High Growth Fund produced a positive return over the month of August. Risk assets had positive gains over the month, as investment markets anticipated continuing accommodative policies from central banks and a slower pace of QE tapering. This was despite volatility associated with Delta variant outbreaks, supply chain issues, Afghanistan, and the slowing of growth in China.
The domestic equity market, as represented by the S&P/ ASX 300 Accumulation Index, gained 2.6% over the month. International Equities, as measured by the MSCI World ex Australia Net Return AUD Hedged Index, gained 2.7%. Unhedged international equity exposure outperformed hedged exposure as the USD strengthened, returning 3.1%. Emerging market equities returned 3.2%, as measured by the MSCI Emerging Markets Net Total Return Index.
Chinese stock performance remained weak due to ongoing domestic regulatory issues and US-China tension. The Indian equity market, on the other hand, has been the top performer among major equity markets over the month. Domestic listed property performed strongly with the S&P/ASX 300 A-REIT Index returning 6.4%, thanks to the increasing vaccination rate. Global listed property as measured by the FTSE EPRA/NAREIT Developed AUD Hedged Net Total Return Index, returned 1.5% over the month. Funds with higher allocations to growth assets yielded higher returns to those with a higher allocation to defensive assets, due to stronger returns for growth assets.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/179261946.pdfJuly, 2021
The BT Wholesale Multi-manager High Growth Fund produced a positive return over the month of July. Equities market traded more cautiously during the month with concern around enduring inflation, slowing global recovery due to the Delta variant and earlier than expected monetary policy tightening. Most developed market equity indices ended the turbulent month in positive territory, supported by central banks’ dovish stance on monetary policy and data from the UK showing the effectiveness of vaccination against hospitalisation.
The domestic equity market, as represented by the S&P/ ASX 300 Accumulation Index, gained 1.1% over the month. International Equities, as measured by the MSCI World ex Australia Net Return AUD Hedged Index, gained 1.8%. The Australian Dollar depreciated against most major currency peers, affected by a retreat in commodity prices, extended COVID lockdowns across Australia and risk sentiment. Unhedged international equity exposure outperformed hedged exposure and returned 4.0%. Emerging market equities returned -4.7%, as measured by the MSCI Emerging Markets Net Total Return Index, the cause: a contagious sell-off in Hong Kong and US-listed Chinese stocks triggered by China’s new regulatory crackdown on education companies, in addition to its ongoing scrutiny on IT companies.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/177737516-1.pdfMay, 2021
The BT Wholesale Multi-manager High Growth Fund produced a positive return over the month of May. Equity markets continued to rally over May despite the first signs of increasing inflation in the global economy. Shortcomings on key employment numbers helped fuel investors’ expectations of continued monetary support, pushing risk assets higher and keeping yields at similar levels to April.
The domestic equity market, as represented by the S&P/ ASX 300 Accumulation Index, gained 2.3% over the month. International Equities, as measured by the MSCI World ex Australia Net Return AUD Hedged Index, gained 1.0%. Unhedged international equity exposure returned 1.2%, outperforming hedged exposure due to a slight depreciation in the Australian Dollar against the basket of developed market peers, despite minor appreciation versus the US Dollar. Emerging market equities outperformed developed markets in AUD terms, with the MSCI Emerging Markets Net Total Return Index returning 2.1%. Listed property also performed strongly with the S&P/ASX 300 A-REIT Index returning 1.8% and the FTSE EPRA/NAREIT Developed AUD Hedged Net Total Return Index returning 1.4% over the month. Funds with higher allocations to growth assets yielded higher returns to those with a higher allocation to defensive assets, due to stronger returns for growth assets
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/173550623.pdfApril, 2021
The BT Wholesale Multi-manager High Growth Fund produced a positive return over the month of April. Positive investor sentiment over the month of April has driven the price of risk assets higher. Upbeat quarterly earnings announcements, accelerating vaccine rollouts and Biden’s US$2 trillion infrastructure proposal in the US supported risk sentiment.
The domestic equity market, as represented by the S&P/ ASX 300 Accumulation Index, gained 3.7% over the month. International Equities, as measured by the MSCI World ex Australia Net Return AUD Hedged Index, gained 4.0%. Unhedged international equity exposure underperformed hedged exposure mostly due to appreciation in Australian Dollar against US Dollar over the month, returning 3.2%. Emerging market equities underperformed developed markets in AUD terms, with the MSCI Emerging Markets Net Total Return Index returning 1.1%. Listed property also performed strongly with the S&P/ASX 300 A-REIT Index returning 3.1% and the FTSE EPRA/NAREIT Developed AUD Hedged Net Total Return Index returning 5.7% over the month. Funds with higher allocations to growth assets yielded higher returns to those with a higher allocation to defensive assets, due to stronger returns for growth assets.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/172023033.pdfDecember, 2020
The BT Wholesale Multi-manager High Growth Fund produced a positive return over the December quarter, resulting in a positive 12 month performance. The December quarter started with investor optimism as markets climbed higher during early October. However, investor sentiment soured mid-month as uncertainty over the US election and climbing COVID-19 cases reversed much of the gains. The Nov 3 US election coupled with approvals for a series of vaccinations resulted in strong equity returns during November that persisted into December, despite being softened by further lockdowns and increasing case rates into the western holiday period.
The domestic equity market, as represented by the S&P/ ASX 300 Accumulation Index, was the stand out performer over the quarter, returning 13.8%, thanks in part to the Australian response to the pandemic and the additional monetary stimulus the RBA has been able to deliver through rate cuts. Global developed equities, as measured by the MSCI World ex Australia Net Return AUD Hedged Index, returned 11.7% over the quarter vs. a 5.7% increase in the unhedged index. The Australian Dollar appreciated against its developed market peers due to continuing global risk-on sentiment, ending the quarter buying 76.9c USD, up from 71.6c at the start of the quarter. Emerging markets measured by the MSCI Emerging Markets AUD Index returned 11.2%. The domestic and international listed property sectors returned strongly over the quarter. The domestic listed property sector returned 13.2% but global listed property lagged, returning 10.6%, as measured by the S&P/ASX 300 A-REIT Index and the FTSE EPRA/NAREIT Developed AUD Hedged Net Total Return Index respectively. Over the quarter funds with higher allocations to growth assets outperformed those with a higher allocation to defensive assets, due to equity markets outperforming fixed interest assets.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/164222666.pdfasset_class: Multi-Asset
asset_category: 81-100% Growth Assets - Multi-Manager
peer_benchmark: Multi-Asset - 81-100% Multi-Manager Index
broad_market_index: Multi-Asset Aggressive Investor Index
manager_contact_details: Array
ticker: BTA0246AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
fund_features:
BT Wholesale Multi-manager High Growth Fund aims to provide high total returns (before fees and taxes) over the long term through capital growth by investing predominantly in growth assets. The Multi-manager funds allow investors to select a single investment option that diversifies across asset classes, investment managers and investment management styles. This diversification helps reduce overall risk and aims to improve consistency of returns by minimising the impact on overall performance resulting from any one style, asset class or manager.
structure: Managed Fund